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, Florida 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.

Florida’s Computer and Electronics Manufacturers Will Gain from CTPA

Despite Colombian tariffs of 5-15%, U.S. computer and electronics products account for 60% of the total Colombian market, and duty-free treatment provided by the CTPA is estimated to increase U.S. exports by an additional 8%.

For Florida companies, who shipped $553 million worth of computers and electronics to Colombia in 2006 – more than half of total U.S. exports – the potential gains from the CTPA equate to more than $44 million in additional annual exports.

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

• Fabricated Metal Products 56.4%
• Non-Metallic Mineral Products 41.4
• Processed Foods 36.2
• Fruits & Vegetables 31.6
• Computers & Electronics 8.0

EXPORTS

In 2006, Colombia was Florida’s 5th largest export market for goods, with exports totaling nearly $1.6 billion.

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

• Engine parts
• Semiconductors
• Cable television equipment

Colombia will eliminate tariffs immediately on farm products such as:

• Citrus fruits
• Tomatoes
• Vegetable extracts and essential oils

The Colombia TPA includes stronger protection of intellectual property rights benefiting Florida’s pharmaceutical and software producers.

IMPORTS

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

Florida’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. International Trade Commission. The majority of Colombia’s exports have received duty-free treatment under the Andean Trade Promotion and Drug Eradication Act (ATPDEA) since 2002. In addition, Colombia also has received duty-free benefits under the Generalized System of Preferences (GSP) program since 1976.
(4) U.S. Department of Commerce.
(5) U.S. International Trade Commission. The International Trade Commission did not publish separate estimates for chemical, plastic, and rubber products.
(6) Column 1 multiplied by Column 2.
(a) 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.
(b) Approximately 70 percent of Florida’s industrial equipment exports will receive immediate duty-free treatment. The remaining 30 percent of products will be duty-free within ten years.
(c) Ninety-one percent of Florida’s transportation equipment exports will receive immediate duty-free treatment. The remaining duties will be eliminated over ten years.
(d) For chemical products, Colombia will eliminate duties affecting 82 percent of Florida’s exports immediately upon implementation of the Agreement.
(e) More than 80 percent of Florida’s industrial exports will receive immediate duty-free treatment under the Agreement.

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