Factbox: Key details of U.S.-Colombia free trade pact

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WASHINGTON | Wed Apr 6, 2011 11:08am EDT

WASHINGTON (Reuters) - The United States and Colombia agreed on Wednesday on a plan to strengthen Colombian protection of labor rights and union leaders that will pave the way for the U.S. Congress to approve a long-delayed a free trade agreement. [ID:nN06199300]

Here are some key facts on U.S.-Colombia trade and the main features of the U.S.-Colombia Trade Promotion Agreement, signed in 2006 but blocked by concern among Democrats over labor abuses in Colombia:

- Two-way U.S. goods trade with Colombia totaled close to $28 billion in 2010, up sharply from around $21 billion during the global recession year of 2009.

- U.S. goods exports to Colombia surpassed $12 billion in 2010, led by shipments of fuel oil and other petroleum products, chemicals, plastics, drilling equipment, machinery and agricultural goods such as wheat and corn.

- Colombia exported about $15.6 billion worth of goods to the United States in 2010, more than half of which was crude oil. Other top exports included gold, coal, coffee, fuel oil, cut flowers, clothing, fruit and some sugar.

- The pact would lock in duty-free access for most of Colombia's exports to the United States. Colombia has had that preferential access to the U.S. market since the early 1990s under the Andean Trade Preferences Act.

However, that legislation expired in February and its renewal has been delayed in a Republican bid to put pressure on the White House to send the free trade pact to Congress.

- Over 80 percent of U.S. exports of consumer and industrial products to Colombia will be duty-free immediately upon entry into force of the agreement, with remaining tariffs phased out over ten years, according to a fact sheet from the U.S. Trade Representative's office.

- Within each of the following key industrial sectors, almost all U.S. products will gain immediate duty free access to the Colombian market: agriculture and construction equipment, aircraft and parts, auto parts, fertilizers and agro-chemicals, information technology equipment, medical and scientific equipment, and wood.

- Key U.S. agriculture exports such as cotton, wheat, soybeans, high quality beef, apples, pears, peaches, cherries and almonds, will receive immediate duty-free treatment.

- Virtually all information technology products will be duty free upon entry into force of the Agreement.

- Over 92 percent of U.S. exports of agricultural equipment and 88 percent of U.S. exports of construction equipment to Colombia will be duty-free immediately upon entry into force of the agreement.

- Seventy percent of U.S. infrastructure and machinery exports to Colombia will be duty-free upon entry into force of the U.S.-Colombia TPA.

- Colombia will eliminate tariffs on eighty-two percent of U.S. chemical exports immediately upon implementation of the Agreement. The remaining tariffs will phase out over ten years

- Colombia will eliminate a ban on imports of U.S. remanufactured equipment, such as computers, cellular phones, auto parts, construction equipment and medical equipment.

-Ninety-six percent of U.S. medical equipment exports to Colombia will receive duty- free access immediately upon entry into force of the Agreement, with the remaining duties phased out over five and ten years.

-Tariffs on 65 percent of U.S. energy equipment exports will be eliminated immediately upon entry into force of the Agreement with the remaining tariffs phased out over ten years.

-One hundred percent of U.S. aircraft and related parts exports to Colombia will receive duty free access immediately upon entry into force of the agreement.

(Reporting by Doug Palmer; editing by Anthony Boadle)

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Comments (1)
BEANSnGRAVY wrote:
Key DETAIL of U.S.-Colombia free trade pact:
More US factories forced to close as imports increase.

Apr 07, 2011 12:42pm EDT  --  Report as abuse
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