TENNESSEE

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, Tennessee 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 $298 MILLION IN 2010, COLOMBIA IS TENNESSEES 19TH LARGEST EXPORT MARKET

Total Tennessee Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 77 percent of Tennessees exports to Colombia will be duty free. This tariff elimination gives Tennessee exporters a cost advantage of up to $22.5 million over similar products exported by competitors who do not have an F TA with C olombia. While Tennessee exporters typically face tariffs of 10- 15 percent, 94 percent of Colombias exports to the United States in 2010 entered duty free. C TPA would level the playing field for Tennessee exporters.

Estimated Increases in U.S. Exports in Sectors Important to Tennessee Fabricated Metal Products Motor V ehicles & Parts Processed F oods Chemicals Machinery Computers & Electronics 56.4% 43.8 36.2 22.6 14.9 8.0

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Data processing machinery $94,350,687 $9,435,069 Packaged medication 18,785,744 up to 1,878,574 Cotton 15,662,187 1,566,219 Surgical instruments 9,097,391 up to 909,739 Dry pigments 5,470,600 273,530 Antisera products 2,993,989 149,699 2,717,795 up to 407,669 Data recognition machinery Orthopedic appliance parts 2,555,029 127,751 Non-woven fabrics 2,359,623 353,943 Aircraft engines & parts 2,152,782 up to 215,278 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Bridgestone Americas Inc., Nashville, International Paper, Memphis, exports exports off road tires to Colombia forestry products to Colombia that face that face tariffs of 15 p ercent. tariffs of 5 p ercent. Cummins Filtration, Cookeville, Solae LLC, Memphis, exports soy exports motor filters to Colombia products to Colombia that face tariffs that face tariffs of 10-15 p ercent. of 20 p ercent.

Allenberg Cotton Co., Cordova, Charles V Brown Trucking, Hixson, exports raw cotton to Colombia that exports road rollers to Colombia that faces tariffs of 10 p ercent. face tariffs of 10 p ercent. Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 TENNESSEE EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY

Eastman Chemical Company, Kingsport, exports chemical products to Colombia that face tariffs of 5 p ercent.