WISCONSIN

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 and Colombia, improving on an already strong relationship. In particular, Wisconsin 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 $182 MILLION IN 2010, COLOMBIA IS WISCONSINS 21ST LARGEST EXPORT MARKET

Total Wisconsin Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 74 percent

of Wisconsins exports to Colombia will be duty free. This tariff elimination gives Wisconsin exporters a cost advantage of up to $12.2 m illion over s imilar products exported by competitors who do not have an FTA with Colombia. While Wisconsin 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 Wisconsin exporters.

Estimated Increases in U.S. Exports in Sectors Important to Wisconsin Fabricated Metal Products Processed F oods Paper Products Chemicals Transportation Equipment Machinery 56.4% 36.2 27.9 22.6 16.1 14.9

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Excavators $53,036,221 $5,303,622 Derrick parts and attachments 36,437,184 1,821,859 Machinery for welding metals 3,564,036 356,404 Air fresheners 2,463,407 492,681 Electro-diagnostic machines 2,397,302 239,730 Chain sprockets and parts 2,380,870 238,087 2,224,658 333,699 Electrical controls MRI machines 2,063,547 206,355 Appliance parts 1,951,918 195,192 Computer tomography machines 1,718,609 171,861 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Pierce Mfg., Appleton, exports a erial platforms and parts to Colombia that MarquipWardUnited, Phillips, face tariffs of 15 p ercent. exports ring assemblies and machine parts to Colombia that face tariffs of 5-15 p ercent. Smithco West, Cameron, exports agricultural machinery to Colombia that faces tariffs of 5 p ercent. Bemis Manufacturing, Sheboygan Falls, exports h ospital supplies and pharmaceutical products to Colombia that face tariffs of 5-10 p ercent. LEESON Electric, Grafton, exports electric motors to Colombia that face tariffs of 5-15 p ercent. SC Johnson & Son, Racine, exports a ir fresheners to Colombia that face tariffs of 20 p ercent. CNH, Racine, exports parts for h eavy machinery to Colombia that face tariffs of 5 p ercent.
Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 WISCONSIN EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY