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, Idaho 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.

Idaho’s Farmers Stand to Benefit from CTPA

Idaho is the third-largest state exporter of vegetables and the leading potato producer in the United States, but Idaho farmers currently face tariffs of 20% when trying to sell their most important products in Colombia.

CTPA will eliminate immediately all duties on potatoes and potato products, including frozen French fries, potato flakes, and potato chips. CTPA will also eliminate duties on other important Idaho vegetable exports, including peas and lentils.

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

• Dairy Products 110.2%
• Wood Products 72.6
• Processed Foods 36.2 Potatoes 31.6
• Chemicals 22.6
• Computers & Electronics 8.0

EXPORTS

In 2006, Colombia was Idaho’s 53rd largest export market for goods, with exports totaling $1.4 million.

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

• Semiconductors
• Certain paper products
• Fertilizers and agricultural chemicals

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

• Potatoes and potato products
• Prime and Choice beef cuts
• Wheat and barley

The CTPA will strengthen intellectual property rights protections for Idaho’s designers and manufacturers of semiconductors other hitech products.

IMPORTS

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

Idaho’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. Estimated increase in exports for overall crop production calculated from detailed estimates by the International Trade Commission. The International Trade Commission estimates that U.S. leather and leather product exports may experience a small increase in the long run.
(6) Column 1 multiplied by Column 2.
(a) 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.
(b) 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.
(c) Approximately 70 percent of Idaho’s industrial equipment exports will receive immediate duty-free treatment. The remaining 30 percent of products will be duty-free within ten years.
(d) The vast majority of Idaho’s exports of processed food products will receive immediate duty-free treatment under the U.S.-Colombia TPA. * Used and second-hand merchandise include donated clothing, food, and goods. The Department of Commerce and the International Trade Commission did not estimate the effects of the U.S.-Colombia TPA on these products.

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