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Oregon 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, Oregon 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.

Oregon’s Chemical Manufacturers Will Benefit from CTPA Estimated Increases in U.S. Exports

Chemicals have been the most valuable export to Colombia for Oregon companies in each of the past three years, yet these companies currently face tariffs averaging 8% - and ranging up to 20% - when trying to sell their products in Colombia.

CTPA will make Oregon chemical companies more competitive in Colombia by eliminating 82% of tariffs on chemicals immediately and phasing out the rest over 10 years, which is expected to raise U.S. chemical exports to Colombia by 23%.

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

  • Wood Products 72.6%
  • Processed Foods 36.2
  • Fruits, Vegetables & Nuts 31.6
  • Chemicals 22.6
  • Machinery 14.9
  • Computers & Electronics 8.0

EXPORTS

In 2006, Colombia was Oregon’s 43rd largest export market for goods, with exports totaling $21.7 million.

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

  • Machinery and parts, including fork lift parts
  • Unwrought aluminum
  • Semiconductors

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

  • Fruits, vegetables, and tree nuts
  • Prime and Choice cuts of beef
  • Wheat and barley

The CTPA will strengthen intellectual property right protections for Oregon’s designers and manufacturers of software, semiconductors, and other hi-tech products.

IMPORTS

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

Oregon’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. Estimated increase in exports for overall crop production calculated from detailed estimates by the International Trade Commission.
(6) Column 1 multiplied by Column 2.
(a) For chemical products, Colombia will eliminate duties affecting 82 percent of Oregon’s exports immediately upon implementation of the Agreement.
(b) Approximately 70 percent of Oregon’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 Oregon’s transportation equipment exports will receive immediate duty-freetreatment. The remaining duties will be eliminated over ten years.
(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.
(e) Upon implementation of the Agreement, U.S. exporters of agricultural products will receive duty-free treatment on products accounting for nearly 52 percent of current trade and will see all tariffs phased out for the remaining products.

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

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