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JoAnne Green
International Business & Risk Management
Consultant,
Cross-Cultural Trainer
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Now
more than ever, America’s ability to create or support
jobs here at home depends on our ability to export goods
and services to the world. Today, exports support over 9
million American jobs. These are well-paying positions;
Americans whose jobs depend on goods exports earn 13 to
18% more than the national average.
The U.S.-Colombia Trade Promotion Agreement
U.S. goods exports to Colombia in 2010 reached a record
high of $12 billion, representing a 27% increase from
2009. A trade agreement with Colombia will help increase
U.S. GDP by an estimated $2.5 billion goods exports by
an estimated $1.1 billion.
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Colombia is the
third largest market for U.S. exports in Latin
America and the 20th largest market for U.S. goods.
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The Colombian
government plans to invest $42 billion over the next
eight years in urgently needed infrastructure
projects, such as roads and airports, presenting
opportunities for U.S. exporters.
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The U.S. sold
more products to Colombia than to Russia, Spain,
Turkey, Saudi Arabia, Egypt, Chile, Peru, Indonesia,
South Africa, Thailand, and the Philippines in 2010.
Every U.S. state exports to Colombia.
Photo by I.D. R.J. Slide show
by JoAnne Green
Close Security Partner and Regional Leader
With strong bipartisan support, Colombia has made
historic progress improving security for its citizens
and stemming the flow of drugs into the United States.
Colombia has also taken an active and prominent role in
global and regional institutions, including the United
Nations Security Council (UNSC). It chairs the UNSC
Committee on Iran Sanctions and the Committee on Sudan
Sanctions and contributes to multilateral peacekeeping
efforts in Haiti, Sierra Leone, and the Sinai.
A Commitment to Human and Labor Rights
President Juan Manuel Santos has addressed many human
and labor rights concerns, including the following:
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Passing
comprehensive reform laws to restore land rights and
provide reparations to victims of violence. The land
law is expected to help more than 400,000 families
return to their land.
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Creating a
Ministry of Labor to give cabinet-level attention to
labor inspection programs, gender equality, better
salaries and working conditions.
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Engaging human
rights activists; increasing protections for human
rights activists and labor leaders and condemning
threats against them.
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Passing health
care reform, and increasing the minimum wage.
U.S. Exports to Colombia: A State Perspective
The United States exported
$9.5 billion in merchandise to Colombia in 2009, up
from $5.5 billion in 2005. That was a 73 percent
increase over the 2005-09 period, well above the 17
percent increase in U.S. exports to the world.
Colombia was the 23rd largest market for U.S goods
in 2009, out of a total of 232 markets.
Twenty-seven states exported
more than $50 million in goods to Colombia in 2009.
Sixteen of these states exported goods worth $100
million or more, and two exported merchandise worth
more than $2 billion.
Texas and Florida were the top
state exporters to Colombia in 2009. Texas recorded
merchandise exports of $2.8 billion to Colombia,
while Florida recorded shipments of $2.1 billion.
Together, these two states accounted for 52 percent
of total U.S. goods exported to Colombia in 2009.
Other states that posted
significant export totals to Colombia in 2009 were
Louisiana ($665 million), California ($329 million),
Alabama ($304 million), Illinois ($271 million),
Georgia ($265 million), Mississippi ($202 million),
Tennessee ($196 million), and North Carolina ($171
million).
Forty-seven of
the states increased their merchandise exports to
Colombia from 2005 to 2009. Texas recorded the
largest dollar increase, boosting shipments to
Colombia by $1.4 billion—from $1.4 billion in 2005
to $2.8 billion in 2009. Other states with
noteworthy increases in export value to Colombia
over the 2005-09 period were Florida (up $803
million), Mississippi (up $185 million), California
(up $173 million), and Georgia (up $161 million).
Manufactured
goods made up 89 percent of U.S. merchandise exports
to Colombia in 2009. Petroleum and coal products
were the largest manufactured export category, with
$1.2 billion, or 13 percent of total U.S. shipments
of merchandise. Other significant manufactured
export categories were basic chemicals ($801
million); agricultural and construction machinery
($780 million); computer equipment ($598 million);
and other general purpose machinery ($506 million).
The United
States also exported significant amounts of
unprocessed agricultural commodities to Colombia in
2009. Shipments of unprocessed oilseeds and grains
totaled $491 million, accounting for 5 percent of
total U.S. exports to Colombia.
In dollar
terms, the leading growth category among
manufactured exports to Colombia was petroleum and
coal products. Export shipments of these products
grew $1.0 billion (646%) during the 2005-09 period,
from $161 million to $1.2 billion. Other
manufactured export categories that registered large
dollar growth during this period were agriculture
and construction machinery (up $459 million); other
general purpose machinery (up $309 million);
aerospace products and parts (up $272 million); and
computer equipment (up $167 million).
In percentage
terms, the fastest-growing categories among U.S.
manufactured exports to Colombia were veneer,
plywood and engineered wood products; crowns,
closures, seals and other packing accessories;
petroleum and coal products; beverages; and cement
and concrete products. All of these rose by more
than 357 percent from 2005 to 2009.
A total of
11,761 U.S. companies exported merchandise to
Colombia in 2007 (the latest year for which data are
available). Of those, 10,166 (86 percent) were small
and medium-sized enterprises (SMEs), with fewer than
500 employees.
In 2007, U.S.
SMEs exported $2.8 billion in merchandise to
Colombia. This represented 35 percent of total U.S.
exports to Colombia, well above the 30 percent SME
share of U.S. exports to the world.
The U.S.-Colombia
Trade Promotion Agreement would provide significant
commercial opportunities for U.S. exporters:
Colombia is
the 22nd largest market for U.S.
aerospace exports.
Estimated
duties paid on exports of U.S. aerospace products to
Colombia were over $45 million from
2008 to 2010. Tariff elimination could allow U.S.
firms to reinvest in technology and production
improvements.
Nearly 100
percent
of U.S. aerospace exports to
Colombia would receive duty-free treatment
immediately upon implementation of the U.S.-Colombia
Key States Exporting to Colombia
Top U.S. states exporting aerospace products to Colombia • include: Florida,
Texas, Alabama, Connecticut, Kansas, California, New York, Ohio, and Virginia.
The U.S.-Colombia Trade Promotion Agreement would provide
significant commercial opportunities for U.S. exporters:
Colombia is the • 18th largest market for U.S. agriculture
equipment exports.
Estimated duties paid on exports of U.S. agriculture equipment products
to Colombia were • over $1 million from 2008 to 2010. Tariff
elimination could allow U.S. firms to reinvest in technology and production
improvements.
Approximately • 97 percent of U.S. agriculture equipment
exports to Colombia would receive duty-free treatment immediately upon
implementation of the U.S.-Colombia Trade Promotion
Agricultural Equipment Sector Overview
The agricultural equipment sector accounted for nearly $19 • million in
U.S. exports to Colombia over 2008-10 (average) or less than 1 percent of
total U.S. industrial exports to Colombia.
Top U.S. agricultural equipment exports to Colombia include • tractors,
harvesting machinery, and their parts.
In 2009, U.S. production of agricultural equipment products was over $22
billion
The U.S. agricultural equipment sector employed over 56,000 workers in 2009
Other Key Commitments by Colombia for the Agriculture Equipment Sector
Intellectual Property Rights:
The U.S.-Colombia Trade Promotion Agreement requires high levels of
intellectual property protection and enforcement, consistent with U.S. and
international standards, and will support the growth of trade in valuable
digital and other intellectual property-based products. The Agreement will
provide for enhanced protections for trademarks, copyrights, and patents,
such as the implementation a Colombian electronic trademark application
system and on-line database, prohibitions on the circumvention of
technological protection measures used by copyright holders, as well as
ensuring that the parties will provide robust patent and test data
protection.
Remanufactured Goods:
Colombia will eliminate its prohibition on the importation of
remanufactured goods upon entry into force of the Agreement. Most Colombian
tariffs on remanufactured goods will be eliminated immediately upon entry
into force of the agreement, while tariffs on a small number of
remanufactured goods will phase out over ten years.
(Source:
U.S. State Department, U.S. Department of
Commerce, U.S. Department of Labor)
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