7.pdf This presentation captures many uses and the significance of the number...
Equipment machinery & us-colombia fta - may 2011
1. U.S.
Machinery
and
Equipment
Exporters
to
Benefit
from
Expanded
Access
to
Growing
Colombian
Market
May
2011
U.S.
exporters
of
machinery
and
agricultural,
construction,
electrical,
medical
and
transportation
equipment
will
benefit
from
the
reduction
and
elimination
of
tariff
and
non-‐
tariff
barriers
to
trade
when
the
U.S.-‐Colombia
Free
Trade
Agreement
(FTA)
is
implemented.
For
most
U.S.
equipment
exports,
tariffs
will
be
eliminated
immediately,
with
remaining
duties
to
be
phased
out
within
five
to
10
years.
In
addition,
as
part
of
the
FTA’s
Rules
of
Origin
chapter,
Colombia
will
end
its
ban
on
U.S.
remanufactured
equipment
exports
and
immediately
eliminate
tariffs
on
most
of
these
goods.
Machinery
• In
2010,
U.S.
exporters
shipped
more
than
$1.2
billion
worth
of
machinery
goods
to
Colombia
–
the
15th
largest
market
for
U.S.
machinery
exports.
• Of
the
$1.2
billion
in
U.S.
machinery
exports
to
“Not
only
is
Colombia
one
of
Colombia,
small-‐
and
medium-‐sized
enterprises
Caterpillar's
ten
largest
U.S.
export
(SMEs)
exported
$765
million.
markets
by
country,
but
it
is
also
one
of
America's
closest
allies.
The
U.S.-‐
• Key
U.S.
machinery
exports
to
Colombia
include
air
Colombia
Free
Trade
Agreement
will
and
liquid
pumps,
valves,
compressors,
lifting
promote
U.S.
exports
and
support
machinery
and
parts.
American
jobs.
The
agreement
is
also
a
validation
that
Colombia
is
a
good
• Colombian
tariffs
on
U.S.
machinery
exports
average
place
to
conduct
business.”
9.4
percent,
but
can
reach
as
high
as
20
percent.
Between
2008
and
2010,
U.S.
machinery
exporters
-‐
Doug
Oberhelman,
Chairman
and
paid
more
than
$365
million
in
Colombian
tariffs.
CEO,
Caterpillar,
April
6,
2011
• When
the
FTA
enters
into
force,
more
than
65
percent
of
U.S.
machinery
exports
will
receive
duty-‐free
treatment
immediately,
with
remaining
tariffs
zeroed
out
in
two
phases
within
five
to
10
years.
Agricultural
Equipment
• Between
2008
and
2010,
the
United
States
exported
an
estimated
$19
million
in
agricultural
equipment
to
Colombia
–
the
18th
largest
market
for
U.S.
agricultural
equipment
exports
worldwide.
Embassy
of
Colombia
www.colombiaemb.org
1
2. • Key
U.S.
agricultural
equipment
exports
to
Colombia
include
tractors,
harvesting
equipment
and
machinery,
mowers
and
related
parts.
• U.S.
agricultural
equipment
exporters
paid
an
estimated
$1
million
in
Colombian
tariffs
between
2008
and
2010.
• When
the
FTA
enters
into
force,
roughly
97
percent
of
U.S.
agricultural
equipment
exports
will
become
duty
free
immediately,
with
the
remaining
tariffs
to
be
phased
out
within
five
years.
Construction
Equipment
• Colombia
is
the
9th
largest
market
for
U.S.
construction
equipment
exports,
with
these
goods
“This
trade
agreement
will
expand
accounting
for
8.7
percent
of
U.S.
industrial
exports
U.S.
exports
to
Colombia
by
more
than
to
Colombia
between
2008
and
2010.
$1.1
billion
and
give
over
80
percent
of
U.S.
agricultural
and
construction
• In
that
two-‐year
period,
annually
the
United
States
equipment
immediate
duty
free
access
exported
an
average
of
more
than
$787
million
in
to
this
important
emerging
market.
construction
equipment
to
Colombia.
The
trade
agreement
also
provides
greater
protection
and
enforcement
of
• Key
U.S.
construction
equipment
exports
to
Colombia
a
broad
range
of
intellectual
property
include
boring
and
sinking
machinery
and
parts,
rights.”
dumpers,
shovel
loaders
and
track
laying
machinery
and
equipment.
-‐
Association
of
Equipment
Manufacturers,
April
12,
2011
• Colombian
tariffs
on
U.S.
construction
equipment
range
between
five
and
15
percent,
with
U.S.
exporters
facing
an
average
tariff
of
10.4
percent.
Between
2008
and
2010,
U.S.
construction
equipment
manufacturers
paid
more
than
$200
million
in
tariffs
on
exports
to
Colombia.
• When
the
FTA
enters
into
force,
98
percent
of
U.S.
construction
equipment
exports
would
receive
duty-‐free
treatment
immediately,
with
the
remaining
two
percent
of
tariffs
to
be
phased
out
within
five
years.
Embassy
of
Colombia
www.colombiaemb.org
2
3. Electrical
Equipment
• The
United
States
exported
nearly
$200
million
in
electrical
equipment
to
Colombia
between
2008
and
2010,
on
average,
making
Colombia
the
20th
largest
market
for
these
goods.
• Key
U.S.
electrical
equipment
exports
to
Colombia
include
electronic
calculation
device
parts,
laser
disks
and
generating
sets.
• Colombian
tariffs
on
U.S.
electrical
equipment
can
“The
U.S.-‐Colombia
FTA’s
aggressive
be
as
high
as
20
percent,
with
U.S.
exporters
facing
elimination
of
tariffs
on
U.S.
an
average
tariff
of
8.9
percent.
Between
2008
and
electroindustry
products,
which
range
2010,
U.S.
electrical
equipment
manufacturers
paid
from
5
to
20
percent,
stands
to
improve
nearly
$63
million
in
tariffs
on
exports
to
our
export
totals
even
further.”
Colombia.
-‐
Evan
R.
Gaddis,
President
and
CEO,
• When
the
FTA
enters
into
force,
more
than
60
NEMA
–
The
Association
of
Electrical
percent
of
U.S.
electrical
equipment
exports
and
Medical
Imaging
Equipment
would
receive
duty-‐free
treatment
Manufacturers,
April
6,
2011
immediately,
with
the
remaining
tariffs
to
be
eliminated
in
three
phases
within
10
years
of
the
agreement’s
implementation.
Medical
Equipment
• Colombia
is
the
16th
largest
market
for
U.S.
medical
equipment
exports,
and
between
2008
and
2010,
the
United
States
exported
$247
million
in
medical
equipment
to
Colombia,
on
average.
• Key
U.S.
medical
equipment
exports
to
Colombia
include
diagnostic
and
laboratory
reagents,
electro-‐diagnostic
apparatus
and
medical
needles
and
other
supplies.
• U.S.
exporters
of
these
goods
currently
face
Colombian
tariffs
that
range
between
five
and
15
percent.
The
average
tariff
is
7.6
percent.
Between
2008
and
2010,
U.S.
medical
equipment
exporters
paid
more
than
$40
million
in
Colombian
tariffs.
• Nearly
all
–
98
percent
–
of
U.S.
medical
equipment
exports
to
Colombia
will
receive
immediate
duty-‐free
treatment
when
the
FTA
enters
into
force.
Embassy
of
Colombia
www.colombiaemb.org
3
4. • Between
2008
and
2010,
the
United
States
exported
more
than
$81
million
•n
i
shipping
and
transportation
equipment
to
Colombia
–
the
8th
largest
U.S.
•
market
for
these
goods.
•
•
• Key
U.S.
exports
in
this
sector
include
trailers,
semi-‐trailers,
railway
cars
and
•
truck
axels
and
wheels.
•
• While
U.S.
exporters
face
an
average
Colombian
tariff
of
9.3
percent
on
these
goods,
duties
can
reach
as
high
as
20
percent.
U.S.
exporters
paid
more
than
$26
million
in
tariffs
on
shipping
and
transportation
equipment
exports
to
Colombia
between
2008
and
2010.
• Upon
implementation
of
the
FTA,
more
than
87
percent
of
U.S.
shipping
and
transportation
exports
will
receive
duty-‐
free
treatment
immediately,
with
remaining
tariffs
to
be
phased
out
in
two
phases
over
five
to
10
years
Embassy
of
Colombia
www.colombiaemb.org
4