U.S.- Colombia Trade Promotion Agreement

Levels the Playing Field

The U.S.- Colombia TPA will level the playing field for U.S. businesses that sell to Colombia. In 2007, 91 percent of U.S. imports from Colombia entered duty-free on an MFN basis or under unilateral U.S. trade preference programs, such as the Andean Trade Preferences Act (ATPA) and the Generalized System of Preferences (GSP). The ATPA has been effective in expanding and enhancing the U.S.-Colombia commercial relationship, providing the U.S. government a vehicle through which to address problems, as well as encouraging economic growth in Colombia and discouraging illicit drug production. However, the ATPA offers U.S. exporters no equivalent access to the Colombian market. The U.S.-Colombia TPA levels the playing field, and enhances competition because it moves the U.S.-Colombia commercial relationship beyond one-way preferences to full partnership and reciprocal commitments.

In addition, U.S. products currently face a competitive disadvantage because Colombia has been actively negotiating free trade agreements with other countries. Colombia grants preferences to Bolivia, Ecuador and Peru under the Andean Community (CAN), and has negotiated free trade agreements with Chile and Mexico. The Colombian Government also plans to pursue free trade talks with Venezuela, in the wake of Venezuela’s withdrawal from the CAN in 2006. From 2005, a CAN-Mercosur trade agreement lowered Colombia's tariffs on imports from Brazil, Argentina, Paraguay, and Uruguay. Colombia is also negotiating a free trade pact with Central America. In 2007, the Colombian Government initiated free trade agreement negotiations with Canada.

Prepared by the International Trade Administration
Market Access and Compliance
Office of Latin America and Caribbean