KENTUCKY

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, Kentucky 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 $67 MILLION IN 2010, COLOMBIA IS KENTUCKYS 30TH LARGEST EXPORT MARKET

Total Kentucky Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 65 percent of Kentuckys exports to C olombia will be duty free. This tariff elimination gives Kentucky exporters a cost advantage of up to $4.3 million over s imilar products exported by competitors who do not have an FTA with Colombia. While Kentucky 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 Kentucky exporters.

Estimated Increases in U.S. Exports in Sectors Important to K entucky Fabricated Metal Products Beef Primary Metal Products Motor V ehicles and Parts Processed F oods Chemicals 56.4% 46.2 44.3 43.8 36.2 22.6

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Printer, copier, and fax machine parts $6,341,673 up to $634,167 Electro-diagnostic apparatus 3,838,876 383,888 Butadiene rubber 3,579,382 178,969 Chlorides 2,461,114 up to 246,111 Derricks 2,216,012 332,402 Chemical residuals 1,832,444 up to 183,244 1,663,406 83,170 Machinery parts Iron and steel sheets 1,532,090 153,209 1,327,210 up to 199,082 Primary silicones Data processing units 1,224,852 61,243 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Mazak Corporation, F lorence, exports Ashland Inc., Covington, exports
Ocean World Lines, Erlanger, exports silicones to Colombia that face tariffs of 10 p ercent. American Synthetic Rubber, Louisville, exports butadiene rubber to Colombia that face tariffs of 5 p ercent. Kyfi Inc., Louisville, exports chlorides to Colombia that face Armag Corp., Bardstown, Valvoline, Lexington, tariffs of 10 percent. exports oilwell equipment exports chemicals to to Colombia that faces Colombia that face tariffs of 5 p ercent. tariffs of 5-10 p ercent. Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 KENTUCKY EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY

parts for machine tools to Colombia that face tariffs of 5 percent.

chemicals to Colombia that face tariffs of 5-10 p ercent.

Clark Heavy Equipment Sales, Pleasureville, exports bulldozers to Colombia that face tariffs of 10 p ercent.

Link Belt Construction Equipment, Lexington, exports parts for d erricks to Colombia that face tariffs of 5 p ercent.