NORTH

CAROLINA 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, North Carolina 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 $184 MILLION IN 2010, COLOMBIA IS NORTH CAROLINAS 25TH LARGEST EXPORT MARKET

Total North Carolina Exports to Colombia

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Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 52 percent of North Carolinas exports to Colombia will be duty free. This tariff elimination gives North Carolina exporters a cost advantage of up to $11.5 million over similar products exported by competitors who do not have an FTA with Colombia. While North Carolina 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 North Carolina exporters.

Estimated Increases in U.S. Exports in Sectors Important to North Carolina Pork & Poultry Fabricated Metal Products Processed Foods Chemicals Tobacco Products Machinery 72.3% 56.4 36.2 22.6 19.1 14.9

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Data processing machinery $8,883,398 $888,340 Data transmission units 7,126,276 up to 1,068,941 Surgical instruments 6,813,005 up to 681,301 Phone parts 5,412,617 up to 811,893 Mechanical shovels 4,021,787 402,179 3,984,472 up to 398,447 Packaged medication 3,824,350 382,435 Fungicides Polyvinyl plates 3,599,521 up to 719,904 3,072,115 153,606 Lubricant and fuel pumps Dumping machinery 3,025,000 453,750 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Trax, Reidsville, exports bulldozers to Temple-Inland, Manson, exports Colombia that face tariffs of 10 telescopes to Colombia that face percent. tariffs of 5 percent. Bozzetto, Greensboro, exports chemical residuals to Colombia that face tariffs of 5-10 percent. Ramsey Products, Belmont, exports chains and sprockets to Colombia that face tariffs of 10 percent. Clariant Corp, Charlotte, exports Eaton Electrical, Raleigh, exports Hyster Company, Greenville, exports chemical products to Colombia that static converters to Colombia that battery chargers to Colombia that face tariffs of 15 percent. face tariffs of 15 percent. face tariffs of 15 percent.

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

10 NORTH CAROLINA EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY