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MEXICO 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, New Mexico 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 $1.3 MILLION IN 2010, COLOMBIA IS NEW MEXICOS 57TH LARGEST EXPORT MARKET

Total New Mexico Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 64 percent of New Mexicos exports to Colombia will be duty free. This tariff elimination gives New Mexico exporters a cost advantage of up to $80,000 over similar products exported by competitors who do not have an F TA with C olombia. While New Mexico exporters typically face tariffs of 10-15 percent, 94 percent of C olombias exports to the United States in 2010 entered duty free. C TPA would level the playing field for New Mexico exporters.

Estimated Increases in U.S. Exports in Sectors Important to New Mexico Fabricated Metal Products Non-Metallic Mineral Products Processed F oods Chemicals Petroleum & C oal Products Computers & Electronics 56.4% 41.4 36.2 22.6 14.5 8.0

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Nickel powders and flakes $309,960 $15,498 Calcium chloride 213,139 21,314 Data transmission units 72,571 up to 10,886 Electric motors 67,393 up to 10,109 Tents 34,572 6,914 Telephones 25,123 up to 3,768 22,750 1,138 Parts for derricks Articles of iron or s teel 21,723 up to 3,258 17,130 857 Optical fiber cables Sacks a nd bags of p olymers 12,942 2,588 NEW MEXICO COMPANIES WHOSE EXPORTS WOULD BENEFIT FROM CTPA Wall Colmonoy, Los Lunas, exports welding powders to Colombia that face tariffs of 10 percent. CTPA eliminates those tariffs either immediately or within 10 years. Bellavista Trading Services, Santa Teresa, exports insulated cables to Colombia that face tariffs of 15 p ercent. CTPA eliminates those tariffs immediately. Colombia is an important market for numerous New Mexico products. For example, C olombia accounted for 100 percent of New Mexico exports of c ertain paperboard and furnace burners in 2010.
Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 NEW MEXICO EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY