U.S.-Andean Free Trade Agreement Negotiations

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 and signed the U.S.-Peru Trade Promotion Agreement in April 2006. Negotiations with Colombia were completed in February 2006 and the U.S.-Colombia Trade Promotion Agreement was signed in November 2006. Negotiations with Ecuador took place through March 2006, but no date has been set to continue the negotiations. Bolivia 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.

For more information on the negotiations of the United States-Andean Free Trade Agreement please consult the United States Trade Representative website. For information on services for U.S. companies interested in entering the Andean markets, visit www.buyusa.gov/bolivia/en for Bolivia, www.buyusa.gov/colombia/en for Colombia, www.buyusa.gov/peru/en for Peru, and www.buyusa.gov/ecuador/en for Ecuador.