(April 8, 2008) U.S. President George W. Bush yesterday signed a letter to send Congress legislation that implements the United States' free trade agreement (FTA) with Colombia.
The California Chamber of Commerce-supported agreement is a critical element of the U.S. strategy to liberalize trade through multilateral, regional and bilateral initiatives. The Colombian FTA is part of the administration's goal of eventually creating a Free Trade Area of the Americas.
“Approving the free trade agreement will also strengthen our economy,” Bush said at the signing ceremony. “Almost all of Colombian exports enter the United States duty-free, while American products exported to Colombia face tariffs of up to 35 percent for non-agricultural goods and much higher for many agricultural products. In other words, the current situation is one-sided. Our markets are open to Colombian products, but barriers exist that make it harder to sell American products in Colombia.”
Colombia
Colombia is California's 39th largest trading partner. In 2007, the United States exported more than $8.6 billion worth of goods to Colombia, with total trade amounting to nearly $18 billion.
The United States and Colombia concluded their negotiations for a Trade Promotion Agreement (TPA) in February 2006. On August 24, 2006, President Bush sent a formal letter to the U.S. Congress stating his intent to sign the U.S.-Colombia TPA. The agreement was signed in November 2006.
The U.S. Department of Commerce believes the Colombia TPA "will generate new export opportunities for U.S. agriculture, industry, service providers and workers. In Colombia, the agreement will attract new investment, create jobs and raise living standards."
The agreement serves as part of a wider strategy to advance free trade, fight drug trafficking and promote economic development in Colombia, according to the Office of the U.S. Trade Representative.
The U.S.-Colombia FTA was presented to the Colombian national congress in December 2006.
Successful Passage
When the agreement enters into force, 80 percent of U.S. consumer and industrial exports to Colombia will be duty-free immediately, including: nearly all information technology products; mining, agriculture, and construction equipment; medical and scientific equipment; auto parts; paper products; and chemicals. The remaining tariffs phase out over 10 years.
U.S. farmers and ranchers will also become much more competitive, benefiting from immediate duty-free treatment of 77 percent of current U.S. agriculture exports. Key U.S. agriculture exports such as cotton, wheat, soybeans, high-quality beef, apples, pears, peaches, cherries, and almonds will be duty-free upon entry into force of the agreement. Colombia will phase out all other agricultural tariffs within 19 years.
Congress now has 90 days to sign the agreement.
Staff Contact: Susanne Stirling
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International Trade