IOWA

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, Iowa 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 $47 MILLION IN 2010, COLOMBIA IS IOWAS 45TH LARGEST EXPORT MARKET

Total Iowa Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 59 percent of Iowas exports to Colombia will be duty free. This tariff elimination gives Iowa exporters a cost advantage of up to $3.1 million over s imilar products exported by competitors who do not have an FTA with Colombia. While Iowa exporters typically face tariffs of 10-15 percent, 94 percent of Colombias exports to the United States in 2010 entered duty free. CTPA would level the playing field for Iowa exporters.

Estimated Increases in U.S. Exports in Sectors Important to Iowa Pork Products Fabricated Metal Products Processed F oods Chemicals Corn Machinery 72.3% 56.4 36.2 22.6 21.0 14.9

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Mechanical shovels $7,174,412 $717,441 Tractors 3,169,529 475,429 Aircraft engines & parts 2,295,117 up to 229,512 Boring machinery 2,229,111 222,911 Mechanical shovel loaders 1,442,761 144,276 Graders and levelers 1,067,044 106,704 1,037,957 103,796 Bulldozers & angledozers Molybdates 800,678 80,068 Brewing or distilling waste 788,361 118,254 Parts for d erricks 679,704 33,985 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA APC Inc., Ankeny, exports Iowa Mold Tooling, Garner, exports ABA Express, Cedar Rapids, exports animal p lasmas to Colombia parts for d erricks to Colombia that machinery parts to Colombia that that face tariffs of 5 p ercent. face tariffs of 5 percent. face tariffs of 10 p ercent. Pioneer Overseas Corporation, Bridgestone Americas, Des Grain Processing Corporation, Johnston, exports seed grains Moines, exports agricultural Muscatine, exports starches to to Colombia that face tariffs of tires to Colombia that face Colombia that face tariffs of 28 5 percent. tariffs of 15 p ercent. percent.

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

10 IOWA EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY