ARKANSAS

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, Arkansas 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 $33 MILLION IN 2010, COLOMBIA IS ARKANSAS 30TH LARGEST EXPORT MARKET

Total Arkansas Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 78 percent of Arkansas exports to C olombia will be duty-free. This tariff elimination gives Arkansas exporters a cost advantage of up to $2.3 million over s imilar products exported by competitors who do not have an FTA with Colombia. While Arkansas exporters typically face tariffs of 10-15 percent, 94 percent of Colombias exports to the United States in 2010 entered duty free. CTPA would level the playing field for Arkansas exporters.

Estimated Increases in U.S. Exports in Sectors Important to Arkansas Poultry Products Fabricated Metal Products Processed F oods Primary Metal Products Paper Products Cotton 72.3% 56.4 36.2 44.3 27.9 10.5

Source: U.S. International Trade Commission

electric motors and parts to Colombia that face tariffs of 5-15 p ercent. International Equipment Group, Conway, exports oilfield machinery to Colombia that faces tariffs of 10 p ercent. Mallory Transportation Systems, Little Rock, has exported earthmovers to Colombia that face tariffs of 10 p ercent.

Value of Exports Potential Product to Colombia (2010) Duty Savings Surgical instruments $4,547,918 $454,792 Treated iron products 3,596,013 179,801 L-shaped pieces of iron or steel 3,566,594 356,659 Cotton 3,404,863 340,486 Organo-sulfur compounds 1,405,028 up to 70,251 1,356,966 up to 135,697 Hot-rolled iron or steel products 1,239,547 up to 123,955 Miscellaneous marine vessels Packing machinery 929,550 up to 92,955 Steel coils 806,323 40,316 Parts for d erricks 723,932 36,197 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Baldor Electric, Fort Smith, exports John Deere Engine Works, Weiner,
exports engines to Colombia that face tariffs of 10 p ercent.

10 ARKANSAS EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY

JA Riggs, West Memphis, exports construction equipment to Colombia that faces tariffs of 10 percent.

Tractor Finders, Dumas, has exported backhoes to Colombia that face tariffs of 10 p ercent.

Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org