Are you ready to take advantage of reduced tariffs on exports of your US products to Colombia under the US-Colombia Free Trade Agreement which took effect on Tuesday, 15 May 2012?
Entry into force of the US-Colombia FTA comes eight years after the United States and Colombia began negotiating the agreement and nearly five-and-a-half years after the agreement was signed.
This comprehensive trade agreement will eliminate tariffs and other barriers to US exports and promote economic growth for both Colombia and the United States. The FTA is bilateral and reciprocal which means US exports will now benefit from lower tariffs into Colombia just as many imports from Colombia benefit from lower tariffs into the United States under the Generalized System of Preferences (GSP) for developing countries. The FTA levels the playing field and creates more opportunities for US exporters to increase sales to new customers in Colombia at lower cost.
Exports from the United States are estimated to increase by $1.1 billion as a result of the FTA. Once this agreement enters into force, 80% of US goods exported to Colombia will be duty free with remaining tariffs scheduled to be phased out over time. Check out export.gov’s no-cost FTA Tariff Tool to see Colombia’s preferential tariff rates on your company’s products. Tariff savings will help make your US goods more competitive in Colombia, where at least 11 other countries of the Americas have FTAs in place with Colombia.
In addition, 99% of goods imported to the US from Colombia will be duty-free. Elimination of US tariffs will decrease the cost of materials and inputs sourced from Colombia to support manufacturing operations in the United States. Finally, the FTA offers greater intellectual property protections in Colombia and guarantees a minimum labor standard for goods manufactured there.
Small and medium-sized businesses have a lot to gain from the FTA with Colombia and from existing US FTAs with 17 other important trading partners. If you are looking to export for the first time to Colombia, expand your exports, or source products internationally, TradeMoves can help you take full advantage of trade agreements and trade programs to maximize sales of your products to overseas customers.
Elena Aceves Fowlkes / 443.668.8683 / EFowlkes@TradeMoves.net
Shawn Marie Jarosz / 240.242.8108 / SJarosz@TradeMoves.net