Archived Content

Connecticut and Colombia – A Growing Partnership

A U.S.-Colombia Trade Promotion Agreement (TPA) has the potential to increase both trade and investment between the United States and Colombia, improving on an already strong relationship. In particular, Connecticut stands to gain from increased business ties, as the TPA will create jobs at home through increased export market access for both goods and services, reduced prices for manufacturers, and an improved investment environment.

Connecticut’s Aerospace Companies Will Benefit from the CTPA

Connecticut is home to some of the world’s largest aerospace companies, yet despite strong government and military ties between Colombia and the United States, Connecticut exporters face tariffs of up to 15% for aircraft and related products.

CTPA would eliminate immediately many of these tariffs, benefiting employers like Sikorsky Aircraft – a subsidiary of United Technologies Corporation – which recently announced the $225 million sale of 15 helicopters to Colombia in June 2007.

Estimated Increases in U.S. Exports in Sectors Important to Connecticut

  • Fabricated Metal Products 56.4%
  • Processed Foods 36.2
  • Chemicals 22.6
  • Transportation Equipment 16.1
  • Machinery 14.9

EXPORTS

In 2006, Colombia was Connecticut’s 32nd largest export market for goods, with exports totaling $47.1 million.

Colombia will eliminate tariffs immediately on Connecticut’s leading exports, including:

  • Polyethylene
  • Aircraft and parts
  • Certain industrial motors and machinery

The U.S.-Colombia TPA will permit Connecticutbased insurance companies to establish subsidiaries or branches in Colombia. They can also operate on a cross-border basis for key markets including reinsurance and reinsurance brokerage.

IMPORTS

The U.S.-Colombia TPA will make permanent the duty-free benefits that 93 percent of Connecticut’s nontextile and apparel imports from Colombia already enjoy.

Connecticut’s Exports to Colombia Will Benefit from Duty Savings and Increased Access to Colombia’s Market

SOURCES & NOTES

(1) U.S. Department of Commerce.
(2) U.S. International Trade Commission, U.S. Department of Commerce, and U.S. Department of Agriculture. For some categories, Colombia’s duties range as high as 20 percent.
(3) U.S. Department of Commerce.
(4) U.S. International Trade Commission. The International Trade Commission did not publish separate estimates for chemical, plastic, and rubber products.
(5) Column 1 multiplied by Column 2.
(a) Ninety-one percent of Connecticut’s transportation equipment exports will receive immediate duty-free treatment. The remaining duties will be eliminated over ten years.
(b) Colombia will eliminate tariffs on 38 percent of the State’s steel products and 77 percent of non-ferrous metals immediately. The remaining tariffs will be eliminated over 10 years.
(c) Approximately 68 percent of the State’s electronic products will receive immediate duty-free treatment. For information technology product exports 100 percent will receive immediate duty-free treatment.
(d) Approximately 70 percent of Connecticut’s industrial equipment exports will receive immediate duty-free treatment. The remaining 30 percent of products will be duty-free within ten years.

For further information, contact Brigitte Schmidt Gwyn, Director, International Trade & Fiscal Policy 202.496.3263, bgwyn@businessroundtable.org

We use cookies to give you the best experience when using our website. You can click “Accept” if you agree to allow us to place cookies. For more information, please see our Cookie Notice.