Posts Tagged ‘Colombia’

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Under Secretary Sánchez Participates in Americas Competitiveness Forum

October 31, 2012

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Marc Buergi is a fellow in the Office of Public Affairs at the International Trade Administration

U.S. Commerce Under Secretary for International Trade Francisco Sánchez led Commerce’s delegation to this year’s Americas Competitiveness Forum (ACF) in Cali, Colombia, October 24-26.

Sánchez’s participation underscored the U.S. government’s commitment to enhance the competitiveness of the Americas – a region that is vital to the U.S. economy. With Mexico and Canada, it not only includes two of our three largest trading partners, but also some of our key trade agreement partners, including the host country Colombia.

The Obama administration and the Commerce Department are firmly committed to strengthening U.S. trade within the Western Hemisphere. At the 2012 Summit of the Americas, President Obama announced a number of initiatives designed to enhance this important trade relationship. These included the 100,000 Strong Initiative to expand student education exchanges; and the creation of the Innovation Fund of the Americas that increases access to export financing thereby expanding trade opportunities for small and medium-sized enterprises.

In Cali, Sánchez reported on the strong efforts of all U.S. government agencies to advance these initiatives.

The ACF, first held in 2007, tries to improve the region’s competitiveness through innovation, entrepreneurship, public-private partnership and mutual engagement. Hundreds  of representatives from the region’s public and private sector participated in a continental dialogue on competitiveness. Among the numerous guests were heads of state, ministers of economy, commerce, trade and industry, and leaders from academia, civil society, and business.

This year’s ACF helped further develop the goals established at last year’s Forum in the Dominican Republic: In 2011, the “Santo Domingo Consensus” set forth 10 objectives to promote progress toward a more competitive and prosperous region in areas like education, infrastructure, and trade liberalization.

The participants of this year’s ACF learned about the progress and experiences the countries made in adopting the 10 principles: At the opening event of the Forum, the Inter-American Competitiveness Network presented its report “Signs of Competitiveness of the Americas.”

The ACF featured several collateral events, including a business ethics workshop focused on the medical device industry in the Americas, a higher education forum focused on STEM disciplines (science, technology, engineering, and mathematics) and a closed door meeting of ministers of trade, commerce and industry.

Commerce is looking forward to helping deliver on the action items put forward at this important event.

Posted in Competitiveness, Exporting, Finance, Interagency, International Trade Administration, Trade Shows and Trade Events | Tagged , , | 1 Comment »

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U.S.-Colombia Trade Promotion Agreement Now in Force!

May 15, 2012

Christopher Blaha is a Senior International Economist within the Office of Trade and Policy Analysis and Julie Anglin is the Colombia Desk Officer within the International Trade Administration. 

Today more than 80 percent of U.S. exports of consumer and industrial products to Colombia become duty-free as part of the U.S. – Colombia Trade Promotion Agreement. This includes agricultural and construction equipment, building products, aircraft and parts, fertilizers, information technology equipment, medical scientific equipment, and wood. Also, more than half of U.S. exports of agricultural commodities to Colombia become duty-free, including wheat, barley, soybeans, high-quality beef, bacon, and almost all fruit and vegetable products.

Related:

Growth Opportunities for U.S.-Colombia Textile Trade

The agreement also provides significant new access to Colombia’s $180 billion services market, supporting increased opportunities for U.S. service providers. For example, Colombia agreed to eliminate measures that prevented firms from hiring U.S. professionals, and to phase-out market restrictions in cable television.

Prior to the enactment of this agreement, the average tariff that U.S. manufactured goods faced entering Colombia was 10.8 percent. With entry into force today, Colombia’s average tariff rate for manufactured goods from the United States has been reduced to 4 percent.

Colombia Snapshot

Colombia’s 2012 real GDP growth is forecasted at 4.7 percent by the IMF’s World Economic Outlook, remaining around 4.5 percent through 2017.

Colombia’s demand for imports has soared since 2001.  Colombia’s merchandise imports from the world have more than quadrupled over that period climbing from $12.8 billion in 2001 to $54.7 billion in 2011.

The United States remains the largest supplier to the Colombian market, with Colombian imports from the U.S. in 2011 totaling $13.7 billion, or one-quarter of Colombia’s imports.

Imports from the United States in 2011 were led by mineral fuels, machinery, aircraft and organic chemicals. Those four categories accounted for over half of Colombia’s imports from the U.S.

Other top Colombian import markets include China, Mexico and Brazil. The U.S. is the largest market for Colombia’s exports, representing nearly 40 percent of the Colombian export market. 

The impact of the tariff reductions of U.S. exports to Colombia will be immediate for many products; including recreational vehicles, like motorcycles and pleasure boats (Colombia’s average tariff on U.S. exports will be reduced from 13.7 percent to 5.4 percent today) and agricultural equipment, like tractors and harvesters (Colombia’s average tariff will be reduced from 10.8 percent to 3.1 percent today). This will make U.S. manufactured products much more competitive and could also potentially boost sales.

The economies of the United States and Colombia are largely complementary in terms of the goods each exports to the other. For example, Colombia is a large importer of grains from the United States while it exports a number of tropical fruits to our country. In addition, U.S. cotton, yarn and fabric exports to Colombia are used in many apparel items that Colombia exports to the United States.

Facts about U.S. – Colombia Trade:

  • Between 2001 and 2011 U.S. goods exports to Colombia quadrupled, growing from $3.6 billion in 2001 to $14.3 billion in 2011. U.S. goods exports in 2011 were 19 percent higher than the previous year.  
  • Colombia has grown from being the 33rd largest market for U.S. goods exports in 1991 to become the 22nd largest market in 2011.
  • Manufactured goods represented 92 percent of U.S. goods exports to Colombia in 2011. 
  • Increasing exports to Colombia has benefits at the local level as well as the national. In 2011, more than half of U.S. States (26 total) reported merchandise export shipments to Colombia above $75 million.
  • In 2011, the largest state exporters of merchandise to Colombia included Texas ($5.1 billion), Florida ($2.8 billion), Louisiana ($894 million), California ($534 million) and Illinois ($454 million).
  • Houston and Miami are also major metropolitan area exporters to Colombia.

The provisions of the agreement and the resulting tariff cuts present new opportunities for U.S. companies and give U.S. exporters an advantage over exporters from Colombia’s non-FTA partners. The International Trade Administration maintains a database that helps exporters monitor when tariffs on specific products go to zero. The FTA Tariff Tool currently has information relating to manufactured products.

Posted in Exporting, Commercial Service | Tagged , | Leave a Comment »

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Quick Approval of Trade Agreements is Good News for the American Economy

October 12, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade

Earlier tonight, the millions of Americans concerned about jobs got some good news: Congress approved trade agreements with Korea, Colombia and Panama.

It’s been a long journey to this moment, so let me cut right to the chase: Opening new doors of opportunity for U.S. firms to sell their products in these three markets will strengthen our economy and sharpen our competitive edge in the global economy.

It will also support jobs.

Ford Motor Company employees at the Michigan Assembly Plant in Wayne, MI assemble a 2012 Ford Focus.

Ford Motor Company employees at the Michigan Assembly Plant in Wayne, MI assemble a 2012 Ford Focus, one of the vehicles targeted for the Korean market under the U.S.-Korea Trade Agreement. Photo by: Sam VarnHagen/Ford Motor Co. Used with permission.

For every billion in U.S. goods exported overseas, more than 5500 jobs are supported here at home.  In total, the three agreements will support tens of thousands of jobs and add billions to the U.S. GDP — reasons for all Americans to cheer.

I commend President Obama for his leadership in creating a balanced trade agenda.  He has worked tirelessly to get the best possible deal for businesses and workers.  Congress also deserves credit.  These measures were passed with bipartisan support.  That both parties were able to find common ground on these issues speaks to positive economic impact that these agreements will have on communities across the nation.

I also applaud the President and Congress for renewing the Trade Adjustment Assistance program.  Why?  Because whenever there is change, there are some who are negatively impacted; some Americans, through no fault of their own, have lost their jobs because of foreign competition.  But all is not lost: TAA will help them retrain and retool for success in the 21st century economy.

The world is rapidly changing, and we must change with it to succeed in this economic environment. That’s why these three trade agreements are so important; they’ll create new opportunities across all regions and sectors.   Take the auto industry, historically a backbone of the middle class:

In 2010, the U.S. exported approximately $1.5 billion in vehicles and parts to the three prospective markets despite facing relatively high average tariffs.  Because the agreements have passed, the tariffs on these products will ultimately fall to zero, expanding opportunities for growth in exports for U.S. companies.

This is a big deal.  As President Obama said in his speech to Congress outlining the American Jobs Act:

“If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers. I want to see more products sold around the world stamped with three proud words: “Made in America.”

With the passage of these three trade agreements, chances are we will indeed see more U.S. products sold around the world.  That’s a victory for us all.

Posted in International Trade Administration, Korea-US Trade, National Export Initiative | Tagged , , , , , , | 7 Comments »

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Making it Easier to Sell Products “Made in America”

October 3, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

It was a good day for American businesses and workers.

Earlier this afternoon, President Obama submitted three free-trade deals — with Korea, Colombia and Panama — to Congress for consideration.  If passed, these agreements would be a big boost to our economy, providing new opportunities for U.S. companies abroad, while strengthening our economy here at home.

As the President said: “These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America.”

President Obama has long said that exports are a key to the nation’s economic recovery.  Nearly two years ago, he launched the National Export Initiative with the goal of doubling U.S. exports by the end of 2014.  And, last month, in a speech before Congress where he unveiled the American Jobs Act — a bipartisan proposal to put Americans back to work — he stressed the economic benefits of these free-trade agreements.

The President has correctly recognized that exporting provides U.S. businesses with new opportunities to sell their goods and services in markets overseas.  The pending FTAs before Congress would ensure that this trade — with three important markets — is both free and fair.

This is important.  Consider that, in 2010, the United States enjoyed a $9.9 billion non-oil trade surplus with our FTA partners, as compared to a $371 billion non-oil trade deficit with the rest of the world.  In addition, last year, 41 percent of U.S. goods exports went to our FTA partners, even though those countries only account for 9 percent of global Gross Domestic Product.

Clearly, fair trade is good for our economic health and future.  If passed, the pending FTAs are sure to enhance these benefits.  Now, there have been a lot of misconceptions about these FTAs.  To set the record straight, here are some basic facts:

Korea

The U.S. –Korea trade agreement will:

  • Support at least 70,000 American jobs, and boost annual exports of American goods by up to $11 billion through tariff reductions alone.
  • Create new opportunities for U.S. exporters in Korea’s $1.5 trillion economy, the 12th largest in the world in 2010, based on purchasing power parity exchange rates.

Colombia

The U.S. – Colombia trade agreement will:

  • Generate new possibilities in the 3rd largest economy in Central and South America.
  • Reduce barriers to U.S. exports, spurring new opportunities for our businesses, workers, farmers and ranchers, thereby supporting more and better jobs for Americans.

Panama

The U.S. – Panama trade agreement will:

  • Provide new possibilities with one of the fastest growing economies in Latin America, expanding 6.2 percent in 2010, with similar annual growth forecast through 2015.
  • Enhance U.S. competitiveness by eliminating tariffs and other barriers to U.S. exports and expanding trade between our two countries.

Bottom line: By ensuring that the American people have a level-playing field to compete on in these three important markets, the FTAs would spur billions in economic activity, support tens of thousands of American jobs, and sharpen the United States’ competitive edge moving into the future.

The President has worked hard to strengthen these agreements to, in his words, “get the best possible deal for American workers.”

Now, I join his call in urging Congress to pass the FTAs without delay.

Posted in Competitiveness, Exporting, International Trade Administration, Korea-US Trade, Small Business | Tagged , , , , , | 6 Comments »

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