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, Nevada 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.
Nevada’s Metal Manufacturers Will Benefit from CTPA
Fabricated metal products are one of Nevada’s top exports to Colombia, accounting for more than 50% of total exports over the last five years. Yet Nevada companies face average tariffs of 14.3% on their metal products when selling in Colombia.
CTPA will make Nevada producers more competitive in Colombia by eliminating immediately tariffs on 38% of steel products and 77% of other metal products; changes that are expected to increase metal product exports by more than 50%.
Estimated Increases in U.S. Exports in Sectors Important to Nevada
- Fabricated Metal Products 56.4%
- Beef Products 46.2
- Non-Metallic Minerals 41.4
- Processed Foods 36.2
- Plastics & Rubber Products 22.6
EXPORTS
In 2006, Colombia was Nevada’s 39th largest export market for goods, with exports totaling $6.1 million.
Colombia will eliminate tariffs immediately on Nevada’s leading exports, including:
- Certain paper products
- Certain fabricated metals, including titanium
- Computers and electronics
The CTPA will strengthen intellectual property rights protections for Nevada’s designers and manufacturers of computers, electronics, and other hi-tech products.
IMPORTS
The U.S.-Colombia TPA will make permanent the duty-free benefits that 93 percent of Nevada’s non-textile and apparel imports from Colombia already enjoy.
Nevada’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.
(6) Column 1 multiplied by Column 2.
(a) More than 80 percent of Nevada’s industrial exports will receive immediate duty-free treatment under the Agreement.
(b) Colombia will eliminate tariffs on 38 percent of the State’s steel products and 77 percent of non-ferrous metals immediately. The remaining tariffs will be eliminated over 10 years.
(c) Approximately 70 percent of Nevada’s industrial equipment exports will receive immediate duty-free treatment. The remaining 30 percent of products will be duty-free within 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) Approximately 46 percent of U.S. exports of ores will receive immediate duty-free treatment under the U.S.- Colombia TPA.
For further information, contact Brigitte Schmidt Gwyn, Director, International Trade & Fiscal Policy 202.496.3263, bgwyn@businessroundtable.org