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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, Texas 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 $4.4 BILLION IN 2010, COLOMBIA IS TEXAS 8TH LARGEST EXPORT MARKET

Total Texas Exports to Colombia

(billions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 41 percent of Texas exports to Colombia will be duty free. This tariff elimination gives Texas exporters a cost advantage of up to $181 million over similar products exported by competitors who do not have an FTA with C olombia. While Texas 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 Texas exporters.

Estimated Increases in U.S. Exports in Sectors Important to Texas Fabricated Metal Products Processed F oods Chemicals Machinery Petroleum & C oal Cotton 56.4% 36.2 22.6 14.9 14.5 10.5

Source: U.S. International Trade Commission

Value of Exports Potential Product to Colombia (2010) Duty Savings Boring machinery parts $261,698,352 $26,169,835 Propene 162,451,063 8,122,553 Vinyl chloride 121,577,165 6,078,858 Styrene 117,692,694 5,884,635 Polyethylene 90,304,581 13,545,687 87,912,124 13,186,819 Dumping machinery 61,879,057 6,187,906 Cotton Data recognition machinery 36,628,036 up to 5,494,205 31,988,785 1,599,439 Surveying instruments Appliances with individual functions 31,903,447 up to 3,190,345 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Agriculture Sciences Inc., Dallas, Aluminum Metal Products, Lubbock, exports fertilizers to Colombia that exports irrigation equipment to face tariffs of 5 percent. Colombia that faces tariffs of 5 percent. Agrifos Fertilizer, Pasadena, exports chemical products to Colombia that face tariffs of 5 percent. Thermadyne International, Roanoke, exports machinery to Colombia that faces tariffs of 5-10 p ercent.

Aba Express, Houston, exports oil well equipment to Colombia that faces tariffs of 10 p ercent. Fepo Machinery, Alamo, exports dumping machinery to Colombia that faces tariffs of 10 p ercent. Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org


Elementis Chromium, Corpus Christi, exports chemical residuals to Colombia that face tariffs of 5-10 percent.