WASHINGTON – The
United States and Colombia today announced they have concluded their work on a
free trade agreement. This comprehensive trade agreement will eliminate
tariffs
and other barriers to goods and services, and expand trade
between the United
States and Colombia. The conclusion of the
negotiations with Colombia was
announced by U.S. Trade Representative
Rob Portman and Jorge Humberto Botero,
Minister of Trade, Industry and
Tourism.
"The United States and Colombia agreed on terms for a comprehensive trade
opening agreement that will enhance economic growth and prosperity
between the
U.S. and Colombia," said Ambassador Portman. "The free
trade agreement with
Colombia will generate export opportunities for
U.S. agriculture, industry, and
service providers, and help create jobs
in the United States. The agreement will
help foster economic
development in Colombia, and contribute to efforts to
counter
narco-terrorism, which threatens democracy and regional stability."
"An agreement with Colombia is an essential component of our regional
strategy to advance free trade within our hemisphere, combat
narco-trafficking,
build democratic institutions, and promote economic
development. In addition to
eliminating tariffs, Colombia will remove
barriers to trade in services, provide
a secure, predictable legal
framework for U.S. investors operating in Colombia,
provide for
effective enforcement of labor and environmental laws, protect
intellectual property, and provide an effective system to settle
disputes. Also,
since many products from Colombia already enter the
U.S. market duty-free under
the Andean Trade Preference Act (ATPA), the
agreement will level the playing
field and make duty-free treatment a
two-way street," Portman said.
"I look forward to working on a bipartisan basis with Congress to implement
this solid agreement that will benefit American workers, manufacturers,
service
providers, farmers and ranchers," Portman added.
In 2005, Colombia and the United States had $14.3 billion in two-way trade,
and Colombia is currently the second largest agricultural market for
the United
States in Latin America. U.S. goods exports to Colombia in
2005 were $5.4
billion. Top export categories in 2005 were: machinery,
organic chemicals,
electrical machinery, and plastic. U.S. exports of
agricultural products to
Colombia totaled $677 million in 2005. Leading
categories include: coarse
grains, wheat, cotton, and soybeans. U.S.
foreign direct investment (FDI) in
Colombia was $3.0 billion in 2004,
primarily concentrated in the manufacturing,
mining and wholesale
sectors.
BACKGROUND
In May 2004, the United States initiated free trade agreement negotiations
with three Andean nations – Colombia, Peru, and Ecuador. The United
States concluded negotiations
with Peru in December 2005. Negotiations
with Ecuador are continuing. Bolivia
has participated as an observer
and could become part of the agreement at a
later stage.
The United States has significant economic ties to the region. Total two-way
trade with the Andean countries of Colombia, Peru, and Ecuador was
approximately
$24 billion in 2004. The countries comprised an important
market for U.S. goods
exports totaling $8.3 billion in 2004. Leading
exports included machinery,
organic chemicals, plastic, and cereals.
U.S. exports of agricultural products
to Colombia, Peru, and Ecuador
totaled $1 billion. Leading exports included
wheat, coarse grains,
cotton, and soybeans. Goods imports from Colombia, Peru,
and Ecuador
totaled $15.3 billion in 2004. The stock of U.S. foreign direct
investment in these countries in 2004 was $7.7 billion. The three
Andean
countries collectively represent a market of over $8 billion for
U.S. exports,
and are home to close to $8 billion in U.S. foreign
direct investment.
U.S. TRADE AGENDA
The United States is working to open markets globally in the Doha WTO
negotiations; regionally through the APEC forum and the Free Trade Area
of the
Americas (FTAA) negotiations; and bilaterally with FTAs. Since
2001, FTAs with
Australia, Chile, Jordan, Morocco and Singapore have
entered into force. The
Bush Administration has also concluded
negotiations with Bahrain, Costa Rica,
the Dominican Republic, El
Salvador, Guatemala, Honduras, Nicaragua, Oman, Peru
and now Colombia.
Negotiations are under way or about to begin with ten more
countries:
Ecuador, the Republic of Korea, Panama, the five nations of the
Southern African Customs Union (SACU), Thailand, and the United Arab
Emirates.
New and pending FTA partners, taken together, would
constitute America’s third
largest export market and the third largest
economy in the world.
