CALIFORNIA

AND COLOMBIA A GROWING PARTNERSHIP

A U.S.-Colombia Trade Promotion Agreement (CTPA) has the potential to increase both trade and investment between the United States in Colombia, improving on an already strong relationship. In particular, California stands to gain from increased business ties, as the CTPA will create jobs at home through increased export market access for both goods and services, reduced prices for manufacturers, and an improved investment environment.

AT $409 MILLION IN 2010, COLOMBIA IS CALIFORNIAS 34TH LARGEST EXPORT MARKET Total California Exports to Colombia
(millions of dollars)

Source: U.S. Department of Commerce

Estimated Increases in U.S. Exports in Sectors Important to California Misc. Manufactures Fabricated Metal Products Processed F oods Fruits, V egetables, & Nuts Chemicals Computers & Electronics 60.1% 56.4 36.2 31.6 22.6 8.0

Upon implementation of the CTPA, more than 66 percent of Californias exports to C olombia will be duty-free. This tariff elimination gives C alifornia exporters a cost advantage of up to $27.2 m illion over s imilar products exported by competitors who do not have an FTA with Colombia. While California exporters typically face tariffs of 10-15 percent, 94 percent of Colombias exports to the United States in 2010 entered duty free. C TPA would level the playing field for California exporters.

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Distilling equipment $29,015,000 $4,352,250 Data processing machinery 28,681,042 2,868,104 Antisera products 15,475,380 773,769 Data recognition machinery 10,933,847 up to 1,640,077 Disodium carbonate 10,798,205 539,910 Heart pacemakers 9,566,831 478,342 8,630,778 431,539 Machinery parts Salts 7,414,872 370,744 Video games 7,402,287 370,114 Radio or TV transmission apparatus 7,040,681 up to 1,056,102 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Lassen Canyon Nursery, Redding, JF Hillebrand, Sonoma, exports strawberry p lants to Colombia exports machinery to that face tariffs of 5 p ercent. Colombia that faces tariffs of 5-10 percent. Iron Planet, Pleasanton, exports construction equipment to Colombia that faces tariffs of 10 p ercent. Constellation Wine, San Francisco, exports wine to Colombia that faces tariffs Trinity Fruit, Fresno, exports fresh of 15-20 p ercent. nectarines to Colombia that face tariffs of 15 p ercent. Sun Fresh International, Visalia, exports fresh apples to Colombia that face tariffs of 15 p ercent. Castle Rock Vineyards, Richgrove, exports fresh grapes to Colombia that face tariffs of 15 p ercent. Smith & Sons, Bakersfield, Jess exports cotton to Colombia that faces tariffs of 10 p ercent. U.S. Borax, Boron, exports borax Solarworld California, Camarillo, exports to Colombia that faces tariffs of 5 photosensitive d evices to Colombia that percent. face tariffs of 5 percent. Whittier Filtration, Brea, exports LG International, Cerritos, exports filtration equipment to Colombia that polyethylene p lastics to Colombia faces tariffs of 15 p ercent. that face tariffs of 15 p ercent.

Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 CALIFORNIA EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY