United States And Colombia Seal Free Trade Agreement

by Mike Godfrey, Tax-News.com, Washington

02 March 2006

United States Trade Representative Rob Portman has announced that a comprehensive trade agreement between the US and Colombia will eliminate tariffs and other barriers to goods and services, and expand trade between the United States and Colombia.

The conclusion of the negotiations between the US and Colombia was announced on Monday by Ambassador Portman and Jorge Humberto Botero, Colombia's Minister of Trade, Industry and Tourism.

"The United States and Colombia agreed on terms for a comprehensive trade opening agreement that will enhance economic growth and prosperity between the US and Colombia," Portman stated.

"The free trade agreement with Colombia will generate export opportunities for US agriculture, industry, and service providers, and help create jobs in the United States," he added.

Portman went on describe the agreement as an "essential component" of America's regional strategy to advance free trade within its hemisphere. He also said that the FTA will provide a "secure, predictable legal framework for US investors operating in Colombia" whilst protecting intellectual property rights, and providing an effective system to settle disputes.

Many products from Colombia already enter the US market duty-free under the Andean Trade Preference Act (ATPA), and Portman observed that the latest agreement will the playing field and make duty-free treatment "a two-way street".

In 2005, Colombia and the United States had $14.3 billion in two-way trade, and Colombia is currently the second largest agricultural market for the United States in Latin America.

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