With labor issues resolved, tariffs on US exports will fall starting May 15
The Summit of the Americas ended on a minor key, with headlines zeroing in on the continued exclusion of Cuba at the instance of the US and the bad behavior of US agents, while twitter comments focused on Shakira’s rendition of Colombia’s anthem.
But at the Summit’s close, Presidents Obama and Santos were able to announce an accord over labor rights in Colombia that clears the way for the free trade agreement between their two countries to enter into force on May 15.
The US International Trade Commission has estimated that, in eliminating tariffs and trade barriers, this latest FTA will add nearly $1.1 billion to US merchandise exports and $2.5 billion to US GDP.
Over 80% of US consumer and industrial product exports to Colombia will become duty free immediately, with remaining tariffs phased out over 10 years. More than 50% of US agricultural exports will become duty free as of May 15, with the remainder eliminated within 15 years. The FTA also provides duty-free tariff rate quotas (TRQs) on standard beef, chicken leg quarters, dairy products, corn, sorghum, animal feeds, rice, and soybean oil. The complete text of the agreement, including tariff schedules, is available here.
As we’ve noted before, Datamyne trade data provides details of this previously important, but now more hospitable market for US exports. For a sample, see our free report on Colombia’s top imports from the US. Or contact us for a free demo of our Colombia trade data.
And if you’re going to be in the New York metro area May 10, join us at Nexco’s Annual International Trade Conference. Datamyne blog anchor Bill Armbruster will be speaking on FTAs and leveraging trade data to find opportunities in Colombia and other US FTA partner markets.