Free Trade Agreement

The U.S.-Colombia Trade Promotion Agreement
Opportunities for the U.S. Automotive Sector
The U.S.-Colombia Trade Promotion Agreement would provide significant commercial opportunities for U.S.exporters:
• Colombia is the 27th largest market for U.S. automotive exports. • Estimated duties paid on exports of U.S. automotive products to Colombia were over $122 million from 2008 to 2010. Tariffelimination could allow U.S. firms to reinvest in technology and production improvements. • Approximately 62 percent of U.S. automotive exports to Colombia would receive duty-free treatment withinfive years of implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian automotive tariffs currently average 17.4 percent, ranging up to 35 percent.

Automotive Sector Overview

•The automotive sector accounted for over $216 million in U.S. exports to Colombia over 2008-10 (average) or 2.4 percent of total U.S. industrial exports to Colombia. 1 • Top U.S. automotive exports toColombia include medium and large engine motor vehicles, transport vehicles and road tractors, as well as engines and other auto parts. • The U.S. automotive industry accounts for over 4 percent ofU.S. GDP through intricate supply chains that range from raw materials to advanced technology inputs. • In 2009, U.S. production of automotive products was about $206 billion.2 • The U.S. automotivesector employed approximately 666,400 workers in 2009, providing jobs in all 50 states.3

U.S. Automotive Exports to Colombia Averaged $216.4 Million
$250
In Millions USD

$200 $150 $100 $50 $02008 2009 2010

Improved Market Access for U.S. Automotive Exporters to Colombia

• Colombian automotive tariffs currently average 17.4 percent, ranging from 5 to 35 percent. • Over 33 percentof U.S. automotive exports to Colombia would receive duty-free treatment immediately upon implementation of the trade agreement.4 • Tariffs on an additional 29 percent of automotive exports to...