The Free Trade Agreement (FTA) between the United States and Colombia entered into force on May 15, 2012 immediately eliminating tariffs of over 80 percent of U.S. exports of consumer and industrial products to Colombia. Remaining tariffs will be phased out over 10 years.
Why a Colombia-U.S. Trade Promotion Agreement?
The Colombia-U.S. Trade Promotion Agreement supports more American jobs, increases U.S. exports, and enhances U.S. competitiveness. This comprehensive trade agreement eliminates tariffs and other barriers to U.S. exports, expands trade between our two countries, and promotes economic growth for both.
The International Trade Commission (ITC) has estimated that the tariff reductions in the FTA will expand exports of U.S. goods alone by more than $1.1 billion, supporting thousands of additional American jobs. The ITC also projected that the FTA will increase U.S. GDP by $2.5 billion.
Colombia is already a strong trading partner for the United States and has the potential to be an even greater place to do business. Trade with Colombia offers expanded economic opportunities for U.S. manufacturers, workers, and farmers. Colombia is a growing market for U.S. exporters and a good economic and policy partner for the United States. In addition, our Trade Promotion Agreement with Colombia helps further U.S. trade and policy objectives in Latin America.
A View of the U.S. – Colombia FTA
U.S. exports to Colombia for 2016 were $13.1 billion, down 20% from the previous year. A drop in mineral fuel exports was the greatest contributor to the decline.
U.S. imports from Colombia for 2016 were $13.8 billion, down 2% from 2015.
In 2016 Colombia was the third largest export market for U.S. exports in Latin America.
The United States is Colombia’s largest trading partner, representing about 32% of Colombia’s exports and 26% of its imports in 2016.