Paper and Paper Products Sector

An Expert's View about Paper and Paperboard in Colombia

Posted on: 26 May 2012

The paper and paper products sector accounted for over $260 million in U.S. exports to Colombia over 2008-10 (average) or 2.9 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. Paper and Paper Products Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Colombia is the 12th largest market for U.S. paper and paper product exports. • Estimated duties paid on exports of U.S. paper and paper products to Colombia were over $86 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • More than 97 percent of U.S. paper and paper product exports to Colombia would receive duty-free treatment within ve years of implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian paper and paper product taris currently average 12.5 percent, ranging up to 20 percent. Paper and Paper Products Sector Overview U.S. Paper and Paper Product • The paper and paper products sector accounted for over $260 million in U Exports to Colombia Averaged .S. exports to Colombia over 2008-10 (average) or 2.9 1 percent of total U.S. industrial exports to Colombia. $260.3 Million • Top U.S. paper and paper products exports to Colombia include woodpulp, uncoated kraftliner, and corrugated paper and $300 paperboard. $250 • In 2009, U.S. production of paper and paper products was about 2 $200 $155 billion. $150 • U.S. SMEs exported nearly $98 million in paper products to 3 $100 Colombia in 2008. $50 $0 Improved Market Access for U.S. Paper and Paper 2008 2009 2010 Products Exporters to Colombia • Colombian paper and paper products taris currently average 12.5 percent, ranging from zero to 20 percent. • Nearly 51 percent of U.S. paper and paper products exports to 97% of U.S. Paper and Paper Product Colombia would receive duty-free treatment immediately upon 4 implementation of the trade agreement. Exports to Colombia Would be Duty- • Taris on an additional 12 percent of paper and paper products Free Within 5 Years exports to Colombia would be eliminated in equal cuts over ve 3% years and taris on 34 percent of exports would be eliminated by unequal cuts over ve years. Taris on the remaining 3 percent of ? ? ? ? ? ? ? ? ? paper and paper products exports would be eliminated in equal 34% ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? cuts over ten years. 51% ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Key States Exporting to Colombia 1? ? ? ? ? ? ? • Top U.S. states exporting paper and paper products to Colombia 12% include: Florida, Georgia, Pennsylvania, Texas, South Carolina, 5 New York, Delaware, New Jersey, Alabama, and Louisiana. Foreign Competition in Colombian Market 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Colombia. The denition for paper and paper products in this report, unless otherwise cited, is based on Harmonized System (HS) Chapters 47-49. 2 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS codes within 322, 323 and 339. Shipments used as a best available proxy for production. 3 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS codes 322 and 323 4 Data based on three-year average for 2008-2010. 5 U.S. Department of Commerce, U.S. Census Bureau. In Millions USD • Colombia signed trade agreements with both the EU and Canada in November, 2008. Additionally, Colombia has FTAs in force with the rest of the Andean Community, Chile, Mexico, El Salvador, EU Could Gain a Tari Advantage Guatemala, and Honduras. Colombia grants some preferential In the Colombian Paper and access to MERCOSUR, CARICOM, Costa Rica, Nicaragua, and Paper Product Market Panama. 14 • Upon implementation of its agreement, EU paper and paper 12 product exporters would enjoy a 4.2 percent average tari 6 10 advantage over U.S. exports. 8 EU 6 US 4 MFN Other Key Commitments by Colombia for the Paper 2 and Paper Products Sector 0 Rules of Origin: The U.S.-Colombia Trade Promotion Agreement rules of origin allow only U.S. and Colombian originating goods to receive preferential tari treatment under the Agreement. The trade agreement rules of origin provide clear requirements for a good to be considered originating, including on goods wholly obtained or produced entirely in the territory of the United States or Colombia, as well as requirements on materials that are used in the production of the good. Intellectual Property Rights: The U.S.-Colombia Trade Promotion Agreement requires high levels of intellectual property protection and enforcement, consistent with U.S. and international standards, and will support the growth of trade in valuable digital and other intellectual property-based products. The Agreement will provide for enhanced protections for trademarks, copyrights, and patents, such as the implementation a Colombian electronic trademark application system and on-line database, prohibitions on the circumvention of technological protection measures used by copyright holders, as well as ensuring that the parties will provide robust patent and test data protection. 6 U.S. Department of Commerce calculations based on EU-Colombia FTA and U.S.-Colombia Trade Agreement tariff commitments and Colombian 2010 Tariff Schedule. Average Tari April 2011 The International Trade Administration - Your Global Business Partner The International Trade Administration (ITA) – a division of the U.S. Department of Commerce – strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements. ITA also utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. For more information on exporting to Colombia, please contact: • The ITA office of the U.S. Embassy in Colombia at office.bogota@trade.gov, or 011-571-275-2519, or by visiting our website http://www.export.gov/colombia. • The U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/eac. For more information on the U.S.-Colombia Trade Promotion Agreement, please visit www.export.gov/fta/colombia and www.trade.gov/fta/colombia. For more information on industry-specific issues, please visit http://trade.gov/mas/index.asp.
Posted: 26 May 2012