U.S. Trade and Development Agency (USTDA) selected Colombia as country of the year 2007

On March 5, 2008, in a ceremony at the Presidential Palace, U.S. Trade and Development Agency (USTDA) Acting Director Leocadia I. Zak awards President Alvaro Uribe with a plaque in recognition of USTDA's selection of Colombia as Country of the Year 2007.

On January 2, 2008, the U.S. Trade and Development Agency (USTDA) Acting Director Leocadia I. Zak named Colombia as USTDA’s Country of the Year. “During fiscal year 2007, USTDA continued to strengthen its partnership with the private sector in crafting solutions to development challenges and opening markets for trade and increased U.S. exports,” said Acting Director Zak. “The success of our program is best illustrated in Colombia, where USTDA has seen successes in key infrastructure sectors such as oil & gas, petrochemicals, renewable energy, aeronautical meteorology, information technology and communications, and ports.”

Trade News

Commercial Service’s 2007 Congressional Outreach Success

Thanks to Commercial Service efforts, our organization achieved a 168 percent increase in congressional outreach in 2007, making Director General Hernandez the most active principal within ITA.

Our outreach over the past year, including seminars, FTA events and Hill meetings, has led to better visibility for the Commercial Service and, ultimately, more opportunities for America’s small and medium-sized businesses.

Domestic offices briefed all newly elected congressional members and held 155 joint activities with congressional offices. OIO also supported numerous congressional delegations.

Questions about congressional outreach? Please contact Chris.Rager@N0SPAM.mail.doc.gov .

Colombia Trade Promotion Agreement: Why Colombia?

Colombia is already a strong trading partner of the United States and has the potential to be an even greater place to do business for U.S. companies. Trade with Colombia offers expanded economic opportunities for U.S. manufacturers, workers and farmers. A Trade Promotion Agreement gives us a framework to make Colombia a even better place to do business. In addition, an agreement with Colombia helps further U.S. trade and policy objectives in the region.

Upon implementation of the agreement, over 80 percent of U.S. exports of consumer and industrial products to Colombia will become duty-free immediately, with remaining tariffs phased out over 10 years. Key U.S. exports will gain immediate duty-free access to Colombia. Colombia has agreed to allow trade in remanufactured goods, and will join the World Trade Organization Information Technology Agreement. Best prospects include agriculture and construction equipment, aircraft and parts, auto parts, fertilizers and agro-chemicals, information technology equipment, medical and scientific equipment, and wood.

President Bush urges Colombia trade accord

Media: BBC

Byline: N/A

Date: 4 December 2007

President George W Bush has called on Congress to pass a controversial free trade deal with US ally Colombia to help promote regional stability. Some Congress members are opposed, citing concerns over workers' rights. Mr Bush suggested the deal could help counter the influence of Venezuela's Hugo Chavez, with whom both the US and Colombia have difficult relations. The Senate is set to pass a deal with Peru later on Tuesday, and ones with Panama and South Korea are pending.

Mr Bush's comments came after he was asked to react to the result of Venezuela's referendum on Sunday, which saw Mr Chavez's proposed constitutional reforms defeated.

"The Venezuelan people rejected one-man rule. They voted for democracy," Mr Bush said.

Among the main proposals before Venezuelans were moves to allow the president to stand for re-election indefinitely and to end the central bank's autonomy. Mr Bush said the US could make a difference in terms of Venezuelan influence if Congress were to pass a free trade agreement with Colombia.

Failure to do so could destabilize the region, he said.

"The biggest fear in South America is not the leader in Venezuela, but the biggest fear for stability is if the United States Congress rejects the free trade agreement with Colombia," Mr Bush said.

"It would be an insult to a friend; it would send a contradictory message to a country led by a very strong leader, who is working hard to deal with some very difficult problems," Mr Bush said, referring to Colombian President Alvaro Uribe.

Stalled moves

The US and Colombia signed the free trade accord in November 2006, the biggest in the Western Hemisphere since the 1994 North American Free Trade Agreement (Nafta). The deal, if passed, would make more than 80% of US consumer and industrial exports to Colombia duty free. Trade between the two was worth $14.3bn (£7bn) in 2005. However, opponents of the accord argue that Mr Uribe's administration has not done enough to protect the rights of workers and trade unionists.

Plans to create a Free Trade Area of the Americas (FTAA), stretching from Canada to Chile, ran into the buffers before their 2005 deadline could be met. Since then, there has been more emphasis on securing individual trade deals. But these, too, have proved tricky. In May, Congress and the White House reached agreement on a series of standards for countries entering free trade deals with the US, in a bid to smooth ratification.

The Senate is expected to pass a deal with Peru later on Tuesday. This will confirm Peru's duty-free access to the US market, while phasing out Peruvian tariffs on US agricultural and manufactured goods. The White House is also hoping that Congress will approve agreements with Panama and South Korea next year. Whichever deals are approved, free trade is set to be a significant issue in the 2008 US presidential election, amid a general debate over whether it is in fact in the country's interest.

Commerce Secretary Gutierrez Praises Robust Third Quarter GDP Growth

LOS ANGELES─Commerce Secretary Carlos M. Gutierrez today released the following statement on the revised third quarter real gross domestic product (GDP) report, which showed that the American economy grew at 4.9 percent in the third quarter of 2007, the highest rate of GDP growth in four years:

“In the face of real challenges, our resilient economy has now experienced six years of uninterrupted growth.  As the holiday shopping season begins, I am pleased with today’s strong GDP report, coupled with the 1.68 million jobs added over the past year and low unemployment.  President Bush’s pro-growth policies are moving our economy forward. I’m encouraged by what we’re seeing in business investment and the 28 percent of GDP growth that is due to trade.  Exports contributed greatly to the third quarter’s strong growth.

“U.S. exports provide a big boost to America’s economy, and we should do everything we can to expand exports. We should extend the same preferences to U.S. farmers, workers and businesses that Congress has already given to the farmers, workers and businesses of Peru, Colombia and Panama.  One of President Bush’s top priorities is to work with Congress to pass pending Free Trade Agreements with Peru, Colombia, Panama and Korea.  Congress has already allowed 90 percent of goods from these countries to enter our markets duty-free.

“Opening markets creates opportunities for American exporters and increases the competitiveness of our economy. We look forward to working with Congress to pass the Free Trade Agreements with Peru, Colombia, Panama and Korea, which are an important driver of growth and jobs, here at home and abroad.”

Secretary Gutierrez is in Los Angeles to address the GE Hispanic Forum, a gathering of over 600 people dedicated to attracting, developing, and promoting Hispanic talent in the United States, and to reiterate the importance of U.S. exports. GE exports totaled $13 billion in 2006. A free trade agreement with Colombia, a country with which GE’s exports totaled $56 million in 2006, would greatly reduce the tariffs on U.S.-made items including cooking stoves, washing machines and light bulbs immediately.

U.S.- Colombia Trade Promotion Agreement

The U.S. and Colombia intend to sign the Agreement by the end of the year.  Both countries need to pass implementing legislation before the U.S.-Colombia TPA can enter into force. 

United States and Colombia Conclude Free Trade Agreement

The United States and Colombia today announced that 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.

For 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 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 $667 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, 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.

U.S. Government Supports Private Sector Participation in Resinsertion Program

While U.S. law prohibits companies and individuals from knowingly providing support to or having dealings with terrorist organizations, the United States is supportive of the Government of Colombia's efforts to demobilize terrorist organizations and to reintegrate former members and supporters of such organizations into society. To qualify for this program, individual participants in this program were required to renounce their membership in any and all terrorist organizations and have sworn not to rejoin or support such organizations in the future.

As a policy matter, the U.S. supports the Government of Colombia's efforts to encourage employers to facilitate this process of integration by providing opportunities to participants in the program.

As a legal matter, we note for the benefit of employers who are subject to U.S. law that there are no U.S. criminal restrictions against employing or assisting program participants who are no longer members or supporters of a terrorist organization.

Employers should of course always be mindful of the criminal prohibitions against knowingly supporting terrorist organizations -- particularly if they suspect that any individuals in their employment (whether or not participants in the reintegration program) are currently members or supporters of any terrorist organization.

“This is an important step forward," said Ambassador Wood.