RHODE

ISLAND 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, Rhode Island 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 $6.9 MILLION IN 2010, COLOMBIA IS RHODE ISLANDS 37TH LARGEST EXPORT MARKET

Total Rhode Island Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 71 percent of Rhode Islands exports to Colombia will be duty free. This tariff elimination gives Rhode Island exporters a cost advantage of up to $600,000 over similar products exported by competitors who do not have an F TA with C olombia. While Rhode Island exporters typically face tariffs of 10-15 percent, 94 percent of C olombias exports to the United States in 2010 entered duty free. C TPA would level the playing field for Rhode Island exporters.

Estimated Increases in U.S. Exports in Sectors Important to Rhode Island Misc. Manufactures Fabricated Metal Products Primary Metals Chemicals Machinery Computers & Electronics 60.1% 56.4 44.3 22.6 14.9 8.0

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Static converters $2,446,188 $366,928 Parts for liquid pumps 458,013 up to 45,801 Glass balls 389,362 19,468 Machinery parts 212,779 10,639 Appliances with individual functions 145,482 up to 14,548 133,920 13,392 Static converter parts 132,770 13,277 Data processing machinery Electrical equipment 132,341 19,851 Data recognition machinery 110,619 up to 16,593 Data processing units 97,660 4,883 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA International Dioxide, North Kingstown, has exported to Colombia. Its chemical products face Colombian Honeywell Safety Products, tariffs of 5-15 p ercent. Cranston, exports safety equipment to Colombia that faces tariffs of 15 p ercent. American Power Conversion, West Kingston, exports batteries to Colombia that face tariffs of 15 p ercent.

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

10 RHODE ISLAND EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY