(April 23, 2008) The California Chamber of Commerce and other supporters of the U.S.-Colombia Free Trade Agreement
(FTA) will continue to fight for its approval and upholding the nation’s international obligations following a congressional vote delaying the deadline for Congress to act.
On April 10, Congress passed a resolution on trade promotion authority removing the requirement that it act within 90 days of receiving the U.S.- Colombia FTA from President George W. Bush.
California representatives split on a party-line vote with 34 “ayes” from Democrats and 19 “noes” from Republicans.
On April 7, President Bush sent Congress the legislation that would have implemented the FTA. Because of the resolution, Congress now has until the end of the current session to act. The Second Session of the 110th Congress typically would adjourn at the end of the year.
Positive for ExportsThe 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.
When the agreement enters into force, 80 percent of U.S. consumer and industrial exports to Colombia will be duty-free immediately. The remaining tariffs would phase out over 10 years.
Colombia is California’s 39th largest trading partner, exporting more than $320 million in goods in 2007. In 2007, the United States exported more than $8.6 billion worth of goods to Colombia, with total trade topping $18 billion.
Top exports to Colombia from California last year were computers/electronic products, chemical manufacturers, machinery manufacturers and transportation equipment.
Impact on Other Agreements
Still awaiting consideration by Congress are the U.S.-Panama and U.S.-Korea FTAs. Neither is likely to be considered until Congress approves or rejects the U.S.-Colombia FTA.
The CalChamber is urging Congress to approve the U.S.-Colombia FTA because of, among other things, Colombia’s existing strong trade relationship with California, and the numerous positive implications the FTA would have on the state by lifting tariffs on exports. The CalChamber also is urging Congress to consider the U.S.-Colombia agreement to make time for additional FTAs.
Staff Contact: Susanne StirlingAdditional MaterialsInternational Trade