INDIANA

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, Indiana 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 $91 MILLION IN 2010, COLOMBIA IS INDIANAS 29TH LARGEST EXPORT MARKET

Total Indiana Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 56 percent of Indianas exports to Colombia will be duty free. This tariff elimination gives Indiana exporters a cost advantage of up to $4.5 million over s imilar products exported by competitors who do not have an FTA with Colombia. While Indiana 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 Indiana exporters.

Estimated Increases in U.S. Exports in Sectors Important to Indiana Fabricated Metal Products Primary Metal Manufactures Motor V ehicles and Parts Chemicals Corn Transportation Equipment 56.4% 45.7 43.8 22.6 21.0 16.1

Source: U.S. International Trade Commission

 Solae LLC, Remington, exports soy protein concentrates to Colombia that face tariffs of 20 percent. Nucor Steel, Crawfordsville, exports hot-rolled steel sheets to Colombia that face tariffs of 5-10 percent. Dow Agrosciences, Indianapolis, exports chemical residuals to Colombia that face tariffs of 5-10 percent. Hitachi Construction, Plainfield, exports construction and mining equipment to Colombia that faces tariffs of 5-10 p ercent. Tetra Pak Inc., Greenwood, exports machinery to Colombia that faces tariffs of 5-10 p ercent.

Value of Exports Potential Product to Colombia (2010) Duty Savings Packaged medication $10,777,070 up to $1,077,707 Orthopedic accessories 4,584,659 229,233 Poultry products 3,540,217 177,011 Aircraft engines & parts 2,509,682 up to 250,968 Data processing units 2,341,342 117,067 Medical n eedles 2,305,061 115,253 2,000,203 200,020 Aluminum alloy plates Steel coils 1,803,575 up to 180,358 1,493,427 74,671 Tapered rolling bearings Machinery parts 1,472,640 73,632 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA
Franklin Electric, Bluffton, exports motors to Colombia that face tariffs of 10-15 p ercent.

10 INDIANA EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY

Belden Wire & Cable, Richmond, exports coaxial cables to Colombia that face tariffs of 15 percent.

Cummins Inc., Columbus, exports filters to Colombia that face tariffs of 15 p ercent.

Chryso Inc., Charlestown, exports chemical residuals to Colombia that face tariffs of 5-10 p ercent. Reynolds Packaging, New Albany, exports plastic films to Colombia that face tariffs of 20 p ercent.

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