One of the Commerce Department’s top priorities is to strengthen the economic ties between the United States and our trading partners. One year ago today, the ties between the United States and Colombia became much stronger with the implementation of the U.S.-Colombia Trade Promotion Agreement, which Acting Secretary of Commerce Rebecca Blank marked during her remarks today at a luncheon hosted by the American Chamber of Commerce and the Counsel of American Companies (CEA) in Bogotá, Colombia.
Prior to the implementation of the Trade Promotion Agreement, also known as the U.S.-Colombia FTA, the average tariff rate on U.S. industrial exports to Colombia was higher than 10 percent. The agreement immediately eliminated tariffs on more than 80 percent of U.S. consumer and industrial exports to Colombia when it took effect last year, with the remaining tariffs being phased out within 10 years. This makes it easier for U.S. firms to export to Colombia. In fact, from June 2012 through March 2013, U.S. goods exported to Colombia have increased 19 percent compared to the same period in the year before. In 2012, U.S. goods exports to Colombia reached $16.4 billion and made up nearly a quarter of all Colombia’s imports of goods.
Colombian firms have also benefited from the Trade Promotion Agreement, which experts estimate could create hundreds of thousands of Colombian jobs over the next few years. Under this agreement, more than 600 Colombian companies have started exporting to the United States for the first time, and Colombia continues to experience a trade surplus with the United States, its largest trading partner.
Due in part to the Trade Promotion Agreement, U.S. businesses are increasingly interested in exploring trade with Colombia. The 20 firms accompanying Acting Secretary Blank on her trade mission this week represent just a snapshot of the U.S. business community that is looking for new opportunities to invest in Colombia.
The U.S.-Colombia Trade Promotion Agreement is one tool helping the United States work toward the goals of President Obama’s National Export Initiative, a government-wide strategy to promote American exports and support an additional 2 million export-related jobs by the end of 2014. By working together, the United States and Colombia have successfully fostered economic growth and strengthened the relationship between both countries. The Commerce Department is committed to further strengthening this relationship by encouraging increased trade and creating more economic development opportunities for businesses in both countries.
For more information about the U.S.-Colombia FTA, visit http://www.trade.gov/press/press-releases/2013/colombia-factsheet-051513.pdf.