MICHIGAN

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, Michigan 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 $136 MILLION IN 2010, COLOMBIA IS MICHIGANS 29TH LARGEST EXPORT MARKET

Total Michigan Exports to Colombia

(millions of dollars)
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Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 20 percent of Michigans exports to Colombia will be duty free. This tariff elimination gives Michigan exporters a cost advantage of up to $3.2 million over similar products exported by competitors who do not have an FTA with Colombia. While Michigan 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 Michigan exporters.

Estimated Increases in U.S. Exports in Sectors Important to Michigan Fabricated Metal Products Vehicles & Auto Parts Processed Foods Fruits & Vegetables Chemicals Machinery 56.4% 43.8 36.2 31.6 22.6 14.9

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Cellulose ethers $4,985,296 $249,265 Packaged medication 3,062,115 up to 306,212 Industrial furnaces 2,486,986 248,699 Surface-active washing products 2,247,319 449,464 Beauty & skin care products 1,666,115 333,223 1,110,965 up to 166,645 Primary silicones 859,900 85,990 Boring or sinking machinery Electrical circuit equipment 759,071 up to 113,861 720,511 up to 72,051 Surgical instruments Hair products 702,377 140,475 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Ford Motor Company, Dearborn, exports automobile parts to Colombia that face tariffs of 5-15 percent. Dow Chemical, Midland, exports Panalpina Inc., Van Buren Township, chemical products to Colombia that exports welding machines to face tariffs of 5-15 percent. Colombia that face tariffs of 10 percent. AIS Construction Equipment, Lansing, exports shovel loaders to Colombia that face tariffs of 10 percent. Access Business Group Intl. LLC., Ada, exports food additives to Colombia that face tariffs of 10 percent. Tri State Equipment, Jonesville, exports construction equipment to Colombia that faces tariffs of 10 percent.

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

10 MICHIGAN EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY