U.S. Chamber of Commerce - February 27 - U.S. Chamber Hails U.S.-Colombia Trade Deal

WASHINGTON, D.C.—The United States Chamber of Commerce welcomed today’s announcement that the United States has concluded negotiations for a landmark trade agreement with Colombia as the next step in its strategy of economic engagement with Latin America and the Caribbean. Negotiations for a related agreement with Peru were concluded in December.

“This deal opens the door to huge opportunities for American business and agriculture in Colombia.” said Daniel W. Christman, U.S. Chamber senior vice president for international affairs. “The U.S.-Colombia free trade agreement is one of the best tools imaginable to help our friends in Colombia lock in their progress in the fight against narco-trafficking and terrorism by developing sustainable economic alternatives to the drug trade.”

Trade with Colombia and Peru is already lending strength to the U.S. economy. U.S. trade with Colombia reached nearly $14 billion in 2005, and U.S. trade with the Andean countries has surged by nearly 80% over the past three years. Trade and investment with these countries sustains tens of thousands of U.S. jobs.

U.S. exports to Andean countries currently face an average tariff of 9% to 10%, according to the World Bank. At the same time, the U.S. market has virtually no tariffs on imports from these growing economies under the 1991 Andean Trade Preference Act. The trade agreement with Colombia will fix this imbalance by making this trade relationship reciprocal and mutually beneficial.

The agreement will immediately eliminate over 80% of tariffs on U.S. manufactured exports, with other barriers phased out over a few years. It will also strengthen intellectual property and investor protections, open services markets, and enhance transparency in government procurement, according to the Chamber, which is serving as Secretariat for the U.S.-Andean Trade Coalition.

The U.S. Chamber of Commerce is the world’s largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.