The Proposed U.S.-Colombia Free Trade Agreement: Economic and Political Implications
Abstract
Implementing legislation for a U.S.-Colombia Free Trade Agreement (CFTA) (H.R. 5724/S. 2830) was introduced in the 110th Congress on April 8, 2008 under Title XXI (Bipartisan Trade Promotion Authority Act of 2002) of the Trade Act of 2002 (P.L. 107-210). The House leadership took the position that the President had submitted the legislation to implement the agreement without adequately fulfilling the requirements of Trade Promotion Authority. On April 10 the House voted 224-195 to make certain provisions in Section 151 of the Trade Act of 1974 (P.L. 93-618), the provisions establishing expedited procedures, inapplicable to the CFTA implementing legislation (H.Res. 1092). It is currently unclear whether or how the 111th Congress will consider implementing legislation for the pending U.S.-Colombia FTA. The agreement would immediately eliminate duties on 80% of U.S. exports of consumer and industrial products to Colombia. An additional 7% of U.S. exports would receive duty-free treatment within five years of implementation and most remaining tariffs would be eliminated within ten years of implementation. The agreement also contains provisions for market access to U.S. firms in most services sectors; protection of U.S. foreign direct investment in Colombia; intellectual property rights protections for U.S. companies; and enforceable labor and environmental provisions. The United States is Colombia's leading trade partner. Colombia accounts for a very small percentage of U.S. trade (0.8% in 2009), ranking 22nd among U.S. export markets and 27th as a source of U.S. imports. About 90% of U.S. imports from Colombia enter the United States duty free, while U.S. exports to Colombia face duties of up to 20%.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 16, 2010
- Accession Number
- ADA520778
Entities
People
- M. A. Villarreal
Organizations
- Library of Congress