President Notifies Congress of His Intent to Sign a Free Trade Agreement With Colombia

Under the provisions of the Bipartisan Trade Promotion Authority Act of 2002, the President is required to notify Congress at least 90 days in advance of signing an FTA with Colombia.

(In May 2004, the U.S. initiated FTA negotiations with three Andean nations (Colombia, Peru, and Ecuador). The U.S. and Peru have already concluded negotiations and Congress is considering that FTA. In addition, negotiations are under way with Ecuador, while Bolivia has participated as an observer and could become part of the agreement at a later stage.)

(See ITT's Online Archives or 03/01/06 news, 06030105, for BP summary of the USTR's notice announcing the completion of the U.S.-Colombia FTA.)

After FTA is Signed, Next Step Expected to be Enactment of Implementing Legislation

Once the FTA with Colombia is signed, the next step is expected to be for the President to formally submit the U.S.-Colombia FTA implementing legislation package (U.S.-Colombia FTA, implementing legislation, and statement of administrative action) to Congress. Congress would then have 90 legislative days to consider the U.S.-Colombia FTA implementing legislation, which cannot be amended.

It is expected that if the U.S.-Colombia FTA implementing legislation is passed by Congress (both House and Senate), it could then be signed into law by the President, who would subsequently issue a proclamation implementing the U.S.-Colombia FTA.

Highlights of U.S.-Colombia FTA

According to a summary by the Office of the U.S. Trade Representative (USTR), the following are highlights of the U.S.-Colombia FTA (partial list):

Over 80% of U.S. exports of consumer and industrial products to Colombia will become duty-free immediately upon entry into force of the agreement, and an additional 7% will be duty-free within five years. All remaining tariffs will be eliminated within ten years. Many products in key U.S. export sectors, such as agriculture and construction equipment, aircraft and parts, auto parts, fertilizers and agro-chemicals, information technology equipment, medical and scientific equipment, and wood will gain immediate duty-free access to Colombia.

U.S. farm exports to Colombia that will receive immediate duty-free treatment include high-quality beef, cotton, wheat, soybeans, soybean meal, apples, pears, peaches, and cherries, and many processed food products, including frozen french fries and cookies. U.S. farm products that will benefit from improved market access include pork, beef, corn, poultry, rice, fruits and vegetables, processed products, and dairy products.

Textiles and apparel will be duty-free and quota-free immediately if the products meet the agreement's rule of origin.

The rules of origin are generally based on the yarn forward standard. Exceptions to the rules of origin will be handled through an expedited "short supply" determination process after entry into force, or through a similar process under the Andean Trade Preference Act (ATPA) before entry into force. The U.S. and Colombia agreed on 20 "short supply" items as part of the agreement. The agreement does not make use of tariff preference levels (TPLs).

A "de minimis" provision will allow limited amounts of specified third-country content to go into U.S. and Colombian apparel. A special textile safeguard will provide for temporary tariff relief, if imports under the agreement prove to be damaging to domestic producers.

The agreement provides for improved standards for the protection and enforcement of a broad range of intellectual property rights, which are consistent with both U.S. standards of protection and enforcement, and with emerging international standards.

Comprehensive rules of origin will ensure that only U.S. and Colombian goods benefit from the agreement. The parties agree to share information to combat illegal transshipment of goods. In addition, the agreement contains specific commitments to expedite the release of goods, special procedures for the release of express delivery shipments, and the ability of importers to obtain binding advance rulings governing eligibility for preferential tariff treatment, tariff classification, eligibility for duty drawback, country of origin marking and the application of quotas.

Presidential Notification (dated 08/24/06, FR Pub 08/28/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-7221.pdf

Presidential Letter to Congressional Leaders (dated 08/24/06) available athttp://www.whitehouse.gov/news/releases/2006/08/20060824-1.html