MARYLAND

AND COLOMBIA A GROWING PARTNERSHIP

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, Maryland 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 $61 MILLION IN 2010, COLOMBIA IS MARYLANDS 35TH LARGEST EXPORT MARKET

Total Maryland Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 48 percent of Marylands exports to Colombia will be duty free. This tariff elimination gives Maryland exporters a cost advantage of up to $3.2 million over s imilar products exported by competitors who do not have an FTA with Colombia. While Maryland exporters typically face tariffs of 10-15 percent, 94 percent of Colombias exports to the United States in 2010 entered duty free. CTPA would level the playing field for Maryland exporters.

Estimated Increases in U.S. Exports in Sectors Important to Maryland Primary Metal Products Processed F oods Chemicals Transportation Equipment Machinery Computers & Electronics 44.3% 36.2 22.6 16.1 14.9 8.0

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Antennas $2,429,372 up to $364,406 Pharmaceutical lab materials 2,239,831 111,992 Revolvers & pistols 1,734,613 346,923 Aircraft engines & parts 1,491,476 up to 149,148 Micro-organisms 1,318,797 65,940 Pneumatic hand tools 1,276,000 up to 191,400 1,254,319 62,716 Paper scraps Electrical equipment 1,119,296 167,894 1,096,000 109,600 Tamping machines Electric tools 1,041,402 156,210 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Thermal Dynamics Intl., Monkton, Titan Steel Corp., Baltimore, exports exports container bags to Colombia unwrought a luminum to Colombia that face tariffs of 20 p ercent. that faces tariffs of 5 p ercent. Mack Truck, Elkridge, exports battery parts to Colombia that face tariffs of 5 percent. Canusa Hershman Recycling, Baltimore, exports recycled paper to Colombia that faces tariffs of 5 percent. Geodis Wilson USA Inc., Hanover, Mercy Health Foundation, Baltimore, exports tamping machines to exports medical equipment to Colombia that face tariffs of 10 Colombia that faces tariffs of 5-10 percent. percent.

Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 MARYLAND EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY