# Presentation: 257764

## U.S. Trade withColombia : 

- Benefits and Outlook

**Julie Anglin**
- U.S. Department of Commerce
- February 29, 2008

## Discussion Topics

**Why Colombia?  Why a Trade Agreement?**
**Current and Projected Trade**
**Best Prospects**
**Timeline for the Trade Agreement**
**Resources: How can ****Commerce**** help you succeed with Free Trade Agreements?**

## Colombia at a Glance

- 3rd largest population in Latin America
- 440,831 square miles
- Strategic geographical location
- Religion: Roman Catholic 95%
- L anguage: Spanish (official)
- L iteracy Rate: 94%
- System of Government:  Presidential

**Notes:**
Speaker Notes:
1. 44 million people
2.About three times the size of Montana or twice the size of France
3. For you diving fanatics, Colombia’s territory includes the San Andrés, Providencia and 
   Santa Catalina Archipelago 
4.Delta, Continental, American Airlines run frequent non-stop service to 4 gateway 
   cities (Atlanta, Miami, Houston, Newark) from Bogotá, Medellin, Cali, Cartagena and Barranquilla 
5.The country has access to two oceans
6.Take a few Spanish classes  before you travel. Think about printing sales materials 
   and ads in Spanish
7. Bi-Cameral legislature 

## L  ow investment rates
Informal business management practices 
Security concerns

-    **Past vs. Present**

- L  ow investment rates
- Informal business management practices
- Security concerns

- Sustained investment in human resources and IT
- Improved Corporate Governance
- 		Standards
- 		Social responsibility
- Improved Security

**1990’s**

**Today**

**Notes:**
Prior to the 1990’s Colombia was in survival mode. Today, Colombia is thriving 
although poverty and displacement are still key issues.
2. Sustained investment in human resources and technology: An example of this
is the GoC campaign that created Visión Colombia 2019 and Sistema Nacional de 
Competitividad (SNC) to improve Colombia's productivity and competitiveness indicators and 
sets ambitious targets for peace, social justice, infrastructure, quality of life, productivity
and democracy
3. Colombia is reaping the benefits of its National Science & Technology System 
(created in 1990) which supports the development of R&D programs in key 
economic sectors such as: agro industry, electronics, telecomm and IT, energy, 
mining, environment, healthcare, education, basic sciences, biotechnology, 
development of oceanic resources, among others.

## COLOMBIA AS

**AN FTA PARTNER**

**45 million people  **
**Committed to open markets and rule of law ****despite a complicated internal conflict**
**Latin America’s oldest and most ****stable democracy**
**Largest Buyer in South America of U.S. Agricultural and Livestock Products ($1.2 billion in 2007)**
**Strong ****strategic ally****: terrorism, drugs**
**Over ****$5 billion in U.S. foreign**** aid since 2000**

## Doing Business in Colombia: 2008

**The United States has ****25% of the Colombian import market, down from 33% in 2000**
**U.S. products enjoy a ****high degree of acceptance**** **
**U.S. merchandise exports to Colombia in 2007 were ****$8.5**** ****billion  **
**Colombia is our ****26****th**** largest export market**
**Key U.S. exports**** include industrial machinery, chemicals, wheat, corn, electrical machinery**

## Dramatic Improvement in Security 

** ****Kidnappings down 76%**
** ****Terrorist attacks down 61%**

**Dramatic Improvement in Security**** **

**                  ****Terrorist Attacks**

## Colombia’s Path to Prosperity

**                         ****Poverty **

**              ****Unemployment**

**Percent Growth of GDP**

**Percent Growth: GDP Per Capita**

**Poverty down almost 20% since 2002**

**Unemployment at lowest level in a decade**

**Record economic growth**

**GDP per capita rebounding strongly**

## Colombia: Best Prospects

- Safety and Security Equipment
- Food Processing and Packaging  Equipment
- Processed foods
- Cotton/ yarns
- corn/soy/ oilseeds/ wheat

## Colombia: Best Prospects

- Oil and Gas Equipment
- General Equipment
- Telecommunications
- Financial Services

## Colombia: Best ProspectsServices

- IT
- Construction and Engineering
- Distribution
- Entertainment
- Energy
- Consulting
- H  ealthcare

## Why a Colombia Trade Agreement?

**Why a Colombia Trade Agreement?**

**Improve your**** competitiveness ****in a fast-growing market, provide ****clear rules ****for doing business**
**Make free trade a ****two-way street**
**Promote ****economic development****, reduce poverty in our own neighborhood**
**Strengthen our ****national security**
**Bolster our ****friendship ****with a like-minded country committed to democracy, rule of law, open markets**

## Highlights: Colombia TPA

**Highlights: Colombia TPA**

**Immediate ****zero-tariff treatment**** for over 80% of U.S. exports of consumer and industrial products**
**Improved market access for key ****U.S. farm products****: pork, beef, corn, poultry, rice, fruits and vegetables, processed products, and dairy products**
**Colombia will join the WTO ****Information Technology Agreement (ITA)**** **

## U.S.-Colombia Trade Promotion Agreement

- Equal access to
- 	Colombian market
- Strengthens protections for U.S. patents, trademarks, and trade secrets

- Photo: Minister Plata and Susan Schwab

## U.S. -Colombia Trade Promotion Agreement

- Provides benefits to SME ex porters
- Streamlines customs
- Addresses standards issues
- Provides for dispute settlement
- Enhances business climate
- Improves security

- Photo: Port of Cartagena

**Notes:**
Port of Cartagena is compliant with the CSI ( Container Security Initiative)

## West V irginia’s Exports to Colombia

**Notes:**
11th highest among 50 states

## Colombia’s Tariffs on Leading U.S. Goods

- Information Technology Equipment	8.2%
- Chemicals					7.8%
- Metals and Ores				9.2%
- Infrastructure and Machinery	        11.1%
- Transportation Equipment	        12.7%
- Autos and Auto parts			7.4%
- Building Products		                  13.2%
- Paper and Paper Products	        12.5%
- Consumer Goods		                  14.6%

##               The Case for Colombia

**Giving American Products a Fair Shake**

## The Case for Colombia

- Colombian Coffee comes into the United States duty free...

- But this bottle of Pepsi, made in the USA, pays a stiff 20% tax when sold in Colombia.

##            The Case for Colombia

- These beautiful Colombian flowers – a major Colombian
- export – come into our
- market and pay zero tariffs...

- But this box of U.S.-made fertilizer, which helps those flowers grow, is charged up to 15% when exported to
- Colombia.

##    The Case for Colombia

- These baby carrots come into the United States – and onto your dinner table – without paying any U.S. tariffs.

- But this tractor, made by
- Caterpillar in East Peoria, Illinois, faces a 10 percent duty when sold to a Colombian carrot farmer.

##      The Case for Colombia

- This Pennsylvania apple
- pays a 15 percent tariff when sold in Colombia...

- Meanwhile, this Colombian banana enters the United
- States duty-free.

## Awaiting Congressional Approval

**U.S. Congressional V ote – Spring 2008**
**Colombia expected to be difficult vote**
**Implementation phase of 6-12 months follows Congressional approval**
**Share your views!**

## Market Access and Compliance

**Ensuring our trading partners live up to their commitments.**
**Helping U.S. companies who encounter trade barriers.**

## What Kind of Barriers do U.S. Companies Face?

**Tariff and customs barriers**
**Rules of origin, certificates of origin**
**Import licensing**
**Standards, testing, labeling or certification**
**Lack of Intellectual Property Rights protection**
**Government procurement contracts**

**What Kind of Barriers do U.S. Companies Face?**

## Useful Links

**More Background on Trade Agreements –**
- http://www.tradeagreements.gov
**Market Access or Compliance problems –**
- http://trade.gov/mac/
**Intellectual Property Protection –**
- http://stopfakes.gov
**United States Trade Representative – **
- http://www.ustr.gov

## Contact Information

**GENERAL EXPORTING QUESTIONS**
- Trade Information Center
- Phone:  1-800-USA-TRADE
**JULIE ANGLIN**
- Phone:  202-482-0428
- E-Mail:  Julie.Anglin@mail.doc.gov