The U.S.—Colombia Trade Promotion Agreement (CTPA)

General Information

The U.S.-Colombia Trade Promotion Agreement (CTPA) is an integral part of the President’s efforts to increase opportunities for U.S. businesses, farmers and workers through improved access for their products and services in foreign markets.  The CTPA supports President Obama’s National Export Initiative goal of doubling U.S. exports by 2015. 

The CTPA will reduce barriers to U.S. exports, protect U.S. interests and enhance the rule of law in Colombia. The reduction of trade barriers and the creation of a more stable and transparent business environment will make it easier and cheaper for U.S. companies to export their products and services to Colombia. The U.S. International Trade Commission estimates that the elimination of tariffs and related barriers in Colombia will increase U.S. GDP by nearly $2.5 billion and U.S. merchandise exports by $1.1 billion. This results in jobs here in America.

Over 80% of U.S. exports of consumer and industrial products to Colombia will become duty free immediately, with remaining tariffs phased out over 10 years. With average tariffs on U.S. industrial exports ranging from 7.4 to 14.6%, this will substantially increase U.S. exports. Key U.S. exports will gain immediate duty-free access to Colombia, including almost all products in the agriculture and construction equipment, aircraft and parts, auto parts, fertilizers and agro-chemicals, information technology equipment, medical and scientific equipment, and wood sectors.

The CTPA would also provide significant new access to Colombia’s $166 billion services market for highly competitive American companies, supporting jobs for American workers in sectors ranging from delivery and telecommunications services to education and health care services.

At this time, the CTPA is not in force.  On October 21, 2011, President Obama signed legislation approving the CTPA. Before the agreement can enter into force, Colombia must be able to demonstrate that it is in compliance with those obligations that will take effect on day one.

For additional information on how the CTPA will benefit U.S. businesses, farmers and workers, see http://www.trade.gov/fta/colombia.

Additional Information