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, New Hampshire 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.

New Hampshire’s Machinery Manufacturers Will Benefit from CTPA

In 2006, New Hampshire exports to Colombia spiked to nearly $16 million, primarily the result of a $9 million increase in machinery exports. Yet New Hampshire companies still face tariffs of 5-15%.

CTPA will eliminate immediately many tariffs on industrial, farm, and power generation equipment, and phase out other tariffs over 10 years. These concessions could raise U.S. exports by 15%, helping New Hampshire continue its export growth to Colombia.

Estimated Increases in U.S. Exports in Sectors Important to New Hampshire

• Fabricated Metal Products 56.4%
• Processed Foods 36.2
• Plastics & Rubber Products 22.6
• Machinery 14.9
• Computers & Electronics 8.0

EXPORTS

Exports In 2006, Colombia was New Hampshire’s 28th largest export market for goods, with exports totaling $15.8 million.

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

• Computers and electronics
• Certain paper products
• Medical tools and equipment

The CTPA will strengthen intellectual property right protections for New Hampshire’s designers and manufacturers of computer and electronic parts, software, and other hi-tech products.

IMPORTS

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

New Hampshire’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. The International Trade Commission estimates that U.S. exports of fabric mill products may experience a small increase in the long run.
(6) Column 1 multiplied by Column 2.
(a) Approximately 70 percent of New Hampshire’s industrial equipment exports will receive immediate dutyfree treatment. The remaining 30 percent of products will be duty-free within ten years.
(b) Colombia will eliminate tariffs on 60 percent of U.S. plastics exports and 59 percent of rubber exports immediately upon the implementation of the Agreement.
(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) One hundred percent of U.S. exports of fabric mill products will receive immediate duty-free treatment under the Agreement.
(e) More than 80 percent of New Hampshire’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