The long-awaited US-Colombia Free Trade Agreement or Trade Promotion Agreement (TPA) entered into force yesterday (15 May), over five years after the treaty was originally signed, according to a news statement from the US Department of Agriculture (USDA).
Under the pact, Colombian producers of a range of items, including agricultural commodities, will be able to export their products tariff-free to the US.
Meanwhile, US agricultural exporters will receive duty-free access on more than half of the products currently exported to Colombia, with virtually all remaining tariffs set to be eliminated within 15 years, the USDA said.
The US International Trade Commission estimates that the value of US exports to Colombia could rise by US$1.1bn, while Colombian exports to the US could grow by US$487m.
Last year, Colombia, Latin America’s fourth-largest economy, shipped exports to the US worth some US$23bn.
Colombian president Juan Manuel Santos said the deal should boost the country’s exports and economy, attract foreign investment and create new jobs, according to a report by MercoPress.
The FTA has not been without its complications, however, as the deal was held up for four years due to concerns about Colombia’s weak labour record, the report said.
In Washington DC, Colombian ambassador Gabriel Silva said bilateral trade between the US and Colombia could double in three years as a result of the trade pact.
The US is Colombia’s top trade partner and the main destination for its exports. Two-way trade between the two countries totalled about US$37.5bn in 2011, according to official data.
The signing of the agreement follows similar moves by Colombia’s Andean neighbours, Peru and Chile, who also enjoy free trade access to the US market.
