(August 17, 2010) A California Chamber of Commerce-opposed state resolution that compels Congress to oppose the U.S.-Colombia Free Trade Agreement (FTA) passed a Senate committee this week on a party-line vote.

AJR 27 (Torrico; D-Fremont), an Assembly Joint Resolution, would cast the FTA and Colombia in an unproductive light if it were to pass the Legislature. Colombia is an important trading partner with California and the United States and also a partner in stopping drug trafficking.

The U.S.-Colombia FTA, signed in 2006, is a critical element of the U.S. strategy to liberalize trade through multilateral, regional and bilateral initiatives. The agreement also will increase momentum toward lowering trade barriers and set a positive example for other small economies in the Western Hemisphere.

The FTA is pending approval by the U.S. Congress.

Colombia Trade

Colombia is a dynamic economy with a pro-U.S. government, and with whom U.S. trade has nearly doubled in recent years. More than 9,000 U.S. companies export their products to Colombia and more than 85 percent of these are small and medium-sized companies. U.S. farmers and ranchers sell agricultural products to these markets, and U.S. manufacturers are enjoying double-digit sales growth that will only grow when the tariffs are removed.

The FTA will eliminate tariffs and other barriers to trade in goods and services, promote economic growth and enhance trade between the United States and Colombia. In 2009, the United States exported more than $9.5 billion worth of goods to Colombia, with total trade amounting to more than $20.7 billion.

California Benefits

The U.S.-Colombia FTA offers tremendous opportunities for California’s exporters. Colombia is California’s 35th largest trading partner, exporting more than $320 million in goods in 2009.

The agreement offers tremendous opportunities for California’s exporters, according to the International Trade Administration of the U.S. Department of Commerce. When the FTA enters into force, 80 percent of U.S. consumer and industrial exports to Colombia, including nearly all information technology products, mining, agriculture, construction equipment, medical and scientific equipment, auto parts, paper products and chemicals, will be duty-free immediately. The remaining tariffs phase out over 10 years.

Key Vote

AJR 27 passed the Senate Business, Professions and Economic Development Committee on August 9 on a vote of 5-2.

Ayes: Negrete-McLeod (D-Chino), Corbett (D-San Leandro), Correa (D-Santa Ana), Florez (D-Shafter), Yee (D-San Francisco).

Noes: Aanestad (R-Grass Valley),Wyland (R-Carlsbad).

Absent, Abstaining, Not Voting: R. Calderon (D-Montebello), Walters (R-Laguna Niguel).

Action Needed

AJR 27 is now awaiting action on the Senate floor. The CalChamber is urging members of the business community to contact their Senate representative and urge them to oppose AJR 27.

For a sample letter, visit www.calchamber.com/colombia.

Staff Contact: Susanne Stirling