Building Products Sector

An Expert's View about Building Products and Construction in Colombia

Posted on: 25 May 2012

The building products sector accounted for over $300 million in U.S. exports to Colombia over 2008-10 (average) or 3.3 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. Building Products Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Colombia is the 17th largest market for U.S. building product exports. • Estimated duties paid on exports of U.S. building products to Colombia were over $109 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • More than 50 percent of U.S. building product exports to Colombia would receive duty-free treatment within ve years of implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian building product taris currently average 13.2 percent, ranging up to 20 percent. Building Products Sector Overview U.S. Building Products Exports to • The building products sector accounted for over $300 million in U.S. exports to Colombia over 2008-10 (average) or 3.3 percent of Colombia Averaged $301.6 1 total U.S. industrial exports to Colombia. Million • Top U.S. building products exports to Colombia include pumps and ventilation equipment, valves, air conditioning parts, $320 ltration equipment, and metal structures. $310 • In 2009, U.S. production of building products was about $53 2 billion. $300 • U.S. SMEs exported approximately $23 million in building $290 3 products to Colombia in 2008. $280 • The U.S. building products sector employed over 315,000 workers 4 in the United States in 2009. $270 2008 2009 2010 Improved Market Access for U.S. Building Products Exporters to Colombia • Colombian building products taris currently average 13.2 percent, ranging from zero to 20 percent. 50% of U.S. Building Products Exports • Over 42 percent of U.S. building products exports to Colombia would receive duty-free treatment immediately upon to Colombia Would be Duty-Free 5 implementation of the trade agreement. Within 5 Years • Taris on an additional 8 percent of building products exports to Colombia would be eliminated over ve years and taris on a further 2 percent of exports would be eliminated over seven Immediate years. Taris on the remaining 48 percent of building products 42% exports would be eliminated in equal cuts over ten years. 48% 5 Years, Linear 7 Years Key States Exporting to Colombia 10 Years • Top U.S. states exporting building products to Colombia include: Texas, Florida, Oregon, North Carolina, Ohio, Pennsylvania, New 8% 6 York, Wisconsin, Alabama, and Illinois. 2% 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Colombia. The denition for building products in this report, unless otherwise cited, is based on portions of the Harmonized System (HS) Chapters 25, 68, 69, 70, 90, and 94. This report includes all non-metal, mineral based building products including ceramics and glass. 2 U.S. Department of Commerce, U.S. Census Bureau, within NAICS 327. Shipments used as a best available proxy for production. 3 U.S. Department of Commerce, U.S. Census Bureau, within NAICS 327. 4 U.S. Department of Labor, Bureau of Labor Statistics, within NAICS 327 (non-seasonally adjusted data). 5 Data based on three-year average for 2008-2010. 6 U.S. Department of Commerce, U.S. Census Bureau. In Millions USD Foreign Competition in Colombian Market • Colombia signed trade agreements with both the EU and Canada EU Could Gain a Tari Advantage in November, 2008. Additionally, Colombia has FTAs in force with the rest of the Andean Community, Chile, Mexico, El Salvador, In the Colombian Building Guatemala, and Honduras. Colombia grants some preferential Products Market access to MERCOSUR, CARICOM, Costa Rica, Nicaragua, and 14 Panama. 12 • Upon implementation of its agreement, EU building product 10 exporters would enjoy a 4.6 percent average tari advantage over 8 U.S. exports. However, if the U.S.-Colombia TPA is implemented at EU the same time 6, U.S. exports would have an immediate 1 percent US 7 average tari advantage over the EU. 4 MFN 2 0 Other Key Commitments by Colombia for the Building Products Sector Government Procurement: The government procurement provisions of the U.S.-Colombia Trade Promotion Agreement guarantee non- discriminatory access to the procurements of most Colombian central government entities, including all key ministries and signicant state-owned enterprises, as well as Colombia’s regional governments. The Agreement also imposes strong disciplines on government procurement procedures, such as requiring advance public notice of purchases and provision of information to all interested suppliers, regarding covered procurement opportunities, as well as timely and eective domestic review procedures. Investment: The U.S.-Colombia Trade Promotion Agreement establishes a strong and predictable legal framework for U.S. investors for all forms of investment. Under the Agreement, Colombia will provide U.S. investors substantive protections and due process rights that are consistent with U.S. legal principles and practice. The Agreement establishes an impartial dispute settlement mechanism for investors to pursue damages for breaches of these protections. 7 U.S. Department of Commerce calculations based on EU-Colombia FTA and U.S.-Colombia Trade Agreement tari commitments and Colombian 2010 Tari 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: 25 May 2012

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