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, Missouri 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.

Missouri’s Chemical Producers Stand to Gain from CTPA

Colombia is already an important market for U.S. plastics producers, accounting for one-third of vinyl chloride and 58% of propylene exports. Chemicals are also Missouri-based companies’ largest export to Colombia, but they currently face tariffs of 5%.

CTPA will eliminate immediately the tariffs on these plastics, which is expected to increase U.S. exports by 23%. For Missouri companies, that would equal $4 million per year in new exports.

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

• Fabricated Metal Products 56.4%
• Processed Foods 36.2
• Chemicals 22.6
• Corn 21.0
• Soybeans 19.8
• Transportation Equipment 16.1

EXPORTS

In 2006, Colombia was Missouri’s 32nd largest export market for goods, with exports totaling $35.2 million.

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

• Certain chemicals
• Steel wire and cable
• Certain processed foods

Colombia also will eliminate tariffs immediately on many farm products, such as:

• Soybean meal and flour
• Certain corn products
• Certain pork products

The CTPA will strengthen intellectual property rights protections for Missouri’s designers and manufacturers of computers, agricultural chemicals, and other hitech products.

IMPORTS

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

Missouri’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) For chemical products, Colombia will eliminate duties affecting 82 percent of Missouri’s exports immediately upon implementation of the Agreement.
(b) Approximately 70 percent of Missouri’s industrial equipment exports will receive immediate duty-free treatment. The remaining 30 percent of products will be duty-free within ten years.
(c) The vast majority of Missouri’s exports of processed food products will receive immediate duty-free treatment under the U.S.-Colombia TPA.
(d) 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.

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