February 25, 2020

February 24, 2020

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Colombia Trade Promotion Agreement Takes Effect

The U.S. — Colombia Trade Promotion Agreement (CTPA) takes effect today, May 15, 2012.

Starting today, 80% of U.S. exports of consumer and industrial products will enter the Colombian market duty free, eliminating tariffs that range on average from 7-15%. Under the CTPA, 70% of agricultural exports will enter duty-free with the remaining tariffs to be eliminated over 15 years. The CTPA also gives U.S. service providers new access to Colombia's $166 million services market, including logistics, telecommunications, education and health care. 

Why Should Your Company Consider Exporting?

  • Growth strategy in line with actual demographics: 
    • 2/3 of the world's purchasing power and 95% of all consumers live outside the United States;
    • Exporting companies grow 2.4 times faster than non-exporting companies;
  • Your competition is doing it: 
    • The United States exports only 1% of its manufactured goods (last in the world);
    • Germany exports 65%;
  • Small and medium-sized enterprises (SMEs) successfully compete in foreign markets:
    • Wisconsin has the most manufacturing SMEs in the United States – SEMEs are companies with fewer than 500 employees;
    • SMEs make up 87% of the exporting firms in Wisconsin;
  • Increasing exports = more jobs here at home.

Why Export to Colombia?

  • Timing: 
    • Colombia is an emerging market; competition is not yet fierce;
    • Your European competitors do not have a trade agreement with Colombia but will soon;
  • Market: 
    • Rapidly-growing market of $45 million consumers;
    • Third largest economy in South America;
    • Affinity for U.S. goods, quality products;
  • Location:
    • Strategic gateway to South America;
    • Easy shipping: Ports on both the Caribbean and Pacific;
    • Same business hours:  Central Standard Time;
    • Two and half hour flight from Miami to Bogotá. 


About this Author

Government and Regulatory Law Group

Michael Best’s Government and Regulatory Law Group intimately understands the dynamics of the regulatory and legislative environments. We use that knowledge to guide effective participation in these regulatory processes, whether compliance issues are involved or in the event changes to the regulatory regimen is desirable. 

The Michael Best Government and Regulatory Law Group consists of several attorneys and other professionals whose practices focus on matters of government and regulatory law. Group members have served in...