MAINE

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, Maine 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 $4.8 MILLION IN 2010, COLOMBIA IS MAINES 31ST LARGEST EXPORT MARKET

Total Maine Exports to Colombia

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Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 33 percent of Maines exports to Colombia will be duty free. This tariff elimination gives Maine exporters a cost advantage of up to $141,000 over similar products exported by competitors who do not have an FTA with Colombia. While Maine 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 Maine exporters.

Estimated Increases in U.S. Exports in Sectors Important to Maine Wood Products Fabricated Metal Products Processed Foods Fruits & Vegetables Paper Products Transportation Equipment 72.6% 56.4 36.2 31.6 27.9 16.1

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Tungsten wire $413,196 $20,660 Felt fabrics 307,231 46,085 Bleached paper 199,649 9,982 Veterinary vaccines 154,279 7,714 Pharmaceutical lab materials 149,091 7,455 88,906 13,336 Synthetic twine 64,345 9,652 Mechanical seals Antennas 60,000 up to 9,000 31,952 4,793 Twine Mechanical shovels 24,900 2,490 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA SAPPI, Westbrook, exports paper products to Colombia that face tariffs of 5-15 percent. CTPA eliminates these tariffs either immediately or within five years. Metso Paper, Biddeford, has exported mechanical appliances to Colombia that face tariffs of 10 percent. CTPA eliminates
these tariffs within 10 years.

10 MAINE EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY

Colombia is an important market for numerous Maine products. For example, Colombia accounted for 100 percent of Maine exports of certain twine, mica, and corrective glasses in 2010.

At more than $3 million in 2010, Colombia also accounted for 95 percent of Maine exports of adhesive paperboard, whose 15 percent tariffs will be phased out over five years under CTPA.

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