United States - Colombia Free Trade Agreement (FTA)

Course summary United States - Colombia Free Trade Agreement (FTA):

US Free Trade Agreements

The FTA US- Colombia was approved and will enter into force in late 2012.

This comprehensive trade agreement will eliminate tariffs and other barriers to U.S. exports, expand trade between the two countries and promote economic growth for both.

The Agreement will remove significant barriers to U.S. goods from entering Colombia’s market. Over 80 percent of U.S. exports of consumer and industrial products to Colombia will become duty free immediately, with remaining tariffs phased out over 10 years. With average tariffs on U.S. industrial exports ranging from 7.4 to 14.6 percent, this will substantially increase U.S. exports.

The International Trade Commission (ITC) has estimated that the tariff reductions in the Agreement will expand exports of U.S. goods alone by more than $1.1 billion, supporting thousands of additional American jobs. The ITC also projected that the Agreement will increase U.S. GDP by $2.5 billion.

The Agreement will provide significant new access to Colombia’s $166 billion services market, supporting increased opportunities for U.S. service providers.

Colombia is the third largest market for U.S. exports in Latin America. U.S. goods exports to Colombia in 2010 were $12.0 billion. Colombia is a large importer of grains from the United States while it exports a number of tropical fruits to US.

Key U.S. exports will gain immediate duty-free access to Colombia: agriculture and construction equipment, aircraft and parts, auto parts, fertilizers and agro-chemicals, information technology equipment, medical and scientific equipment and wood.

Strategic sectors: Agriculture Equipment, Aerospace, Automotive, Building Products, Chemicals, Construction and Electrical Equipment, Consumer Goods, Environmental Goods, Fish Products, Footwear, High-Tech Instrumentation, ICT, Machinery, Medical Equipment, Metal, Papers, Textiles, Services.

The ATPDEA (Andean Trade Preference Pact and Drug Eradication Act) is the mechanism currently used for the duty free admission of about 6,000 Colombian products into the U.S. market. It is temporary, and its extension depends on the free will of the American authorities.

Example of the course United States - Colombia Free Trade Agreement (FTA):

Master in International Business for US Students

FTA structure: 23 chapters

Preamble
1. Initial Provisions and General Definitions

2. National Treatment and Market Access for Goods
United States General Notes
United States Appendix I
Colombia General Notes
Colombia Appendix I
US Tariff Schedule (Industrial and Textiles)
United States Tariff Schedule (Agricultural Goods)
Colombia Tariff Schedule (Industrial and Textiles)
Colombia Tariff Schedule (Agricultural Goods)
ITA Side Letter

3. Textiles and Apparel

4. Rules of Origin and Origin Procedures

Annex - Product Specific Rules
5. Customs Administration and Trade Facilitation

6. Sanitary and Phytosanitary Measures

February SPS Letter Exchange
August SPS Letter Exchange
Other SPS Letter Exchange

7. Technical Barriers to Trade

8. Trade Remedies

9. Government Procurement
Annex 9.1
Side Letter on 30-Day Tendering
Side Letter Regarding Interim Measures

10. Investment

11. Cross-Border Trade In Services
Side Letter on State Measures

12. Financial Services
Understanding Regarding Financial Services and Services

13. Competition Policy

14. Telecommunications

15. Electronic Commerce

16. Intellectual Property Rights

ISP Side Letter
Retransmission Side Letter
Side Letter Concerning Patents and Certain Regulated Products

17. Labor

18. Environment

19. Transparency

20. Administration of the Agreement and Trade Capacity Building

21. Dispute Settlement

22. Exceptions

23. Final Provisions

Annex I: Non-Conforming Measures for Services and Investment
Formatting Note
US Annex I
Colombia Annex I

Annex II: Non-Conforming Measures for Services and Investment
Formatting Note
US Annex II
Colombia Annex II

Annex III: Non-Conforming Measures for Financial Services
US Annex III (with Formatting Note)
Colombia Annex III (with Formatting Note)
Biotechnology TK Understanding

Source: The Office of the United States Trade Representative (USTR)