MINNESOTA

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, Minnesota 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 $68 MILLION IN 2010, COLOMBIA IS MINNESOTAS 34TH LARGEST EXPORT MARKET

Total Minnesota Exports to Colombia

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Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 67 percent of Minnesotas exports to Colombia will be duty free. This tariff elimination gives Minnesota exporters a cost advantage of up to $4.9 million over similar products exported by competitors who do not have an FTA with Colombia. While Minnesota 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 Minnesota exporters.

Estimated Increases in U.S. Exports in Sectors Important to Minnesota Misc. Manufactures Fabricated Metal Products Processed Foods Corn Machinery Computers & Electronics 60.1% 56.4 36.2 21.0 14.9 8.0

Source: U.S. International Trade Commission

 Flint Group, Plymouth, exports lifting equipment to Colombia that faces tariffs of 15 percent. Cargill Inc., Wayzata, exports packaged medication to Colombia that faces tariffs of 5-10 percent. 3M Company, Saint Paul, exports lab supplies to Colombia that face tariffs of 5 percent.

Value of Exports Potential Product to Colombia (2010) Duty Savings Soybeans $6,213,903 up to $1,242,781 Medical needles 4,305,428 215,271 Digital processing units 3,791,835 379,184 Orthopedic accessories 3,482,970 174,149 Orthopedic instruments 2,691,945 134,597 2,157,593 323,639 Instruments for measuring pressure 1,880,106 282,016 Starch residues Data recognition machinery 1,600,816 up to 240,122 1,336,068 up to 133,607 Printer, copier, and fax machine parts Surgical instruments 1,141,238 up to 114,124 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA
ATS INTL., St Cloud, exports sinking machinery to Colombia that faces tariffs of 10 percent.

10 MINNESOTA EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY

Pro AG Logistics, Princeton, exports planting seeds to Colombia that face tariffs of 5 percent.

Donaldson Co., Bloomington, exports construction equipment parts to Colombia that face tariffs of 15 percent.

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