Colombia and the US finalise TPA
President Barack Obama and Colombian President Juan Manuel Santos have agreed to complete a Trade Promotion Agreement which will come in to force on 15th May. The deal will mean that around 80% of industrial and manufactured products between the two countries will become duty free.
The Office of the United States Trade Representative website has a long list of benefits to the US which includes:
- Tariff reductions in the Agreement will expand exports of U.S. goods alone by more than $1.1 billion and increase U.S. GDP by $2.5 billion.
- Provide access to Colombia’s $166 billion services market
- U.S. goods exports to Colombia in 2010 were $12.0 billion. Colombia imports grains, cotton, yarn and fabrics from the United States while it exports a number of tropical fruits and apparel to the US
- 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
- Key U.S. exports will gain immediate duty-free access to Colombia, including almost all products in agriculture and construction equipment, aircraft and parts, auto parts, fertilizers and agro-chemicals, information technology equipment, medical and scientific equipment, and wood.
Colombia is likely to benefit in equal measure. The Colombian presidential website press release states that:
‘President Santos stressed that the enforcement of the trade agreement with this economic power, represents the generation of thousands, millions of jobs in both Colombia and the United States.
“For us it is a dream that we have had for a very long time. Since I was Minister of Trade, 20 years ago, we dreamed of having free trade with the U.S. and this has come true today in Cartagena,” said the Colombian president.