[Ip-health] USTR press release: US and Colombia Conclude FTA

[mpalmedo@cptech.org]

http://www.ustr.gov/Document_Library/Press_Releases/2006/February/United_St=
ates_Colombia_Conclude_Free_Trade_Agreement.html

United States and Colombia Conclude Free Trade Agreement

USTR Press Release
02/27/2006

WASHINGTON =96 The United States and Colombia today announced 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.

In 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 in
2005 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 =96 Colombia, Peru, and Ecuador. The United State=
s
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, Jordan, 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=92s third largest export
market and the third largest economy in the world.