Consumer Goods Sector

An Expert's View about DIY, Housewares, Appliances and Electronics in Colombia

Posted on: 25 May 2012

The consumer goods sector accounted for nearly $160 million in U.S. exports to Colombia over 2008-10 (average) or 1.8 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. Consumer Goods Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Colombia is the 21st largest market for U.S. consumer goods exports. • Estimated duties paid on exports of U.S. consumer goods to Colombia were over $70 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • Approximately 70 percent of U.S. consumer goods exports to Colombia would receive duty-free treatment within ve years of implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian consumer goods taris currently average 15 percent, ranging up to 35 percent. Consumer Goods Sector Overview U.S. Consumer Goods Exports to • The consumer goods sector accounted for nearly $160 million in Colombia Averaged $159.6 U.S. exports to Colombia over 2008-10 (average) or 1.8 percent of 1 total U.S. industrial exports to Colombia. Million • Top U.S. consumer goods exports to Colombia include video and coin-operated games, washing machines, refrigerators, and $250 exercise equipment. $200 • In 2009, U.S. production of consumer goods products was over $154 billion (or nearly 4 percent of total U.S. manufacturing $150 2 production). $100 • The consumer goods sector employed over 1.2 million workers in 3 $50 the United States in 2009. $0 2008 2009 2010 Improved Market Access for U.S. Consumer Goods Exporters to Colombia • Colombian consumer goods taris currently average 15 percent, ranging from zero to 35 percent. • Nearly 57 percent of U.S. consumer goods exports to Colombia would receive duty-free treatment immediately upon 4 70% of U.S. Consumer Goods Exports implementation of the trade agreement. to Colombia Would be Duty-Free • Taris on an additional 13 percent of consumer goods exports to Colombia would be eliminated over ve years and taris on Within 5 Years the remaining 30 percent of consumer goods exports would be eliminated in equal cuts over ten years. 30% Immediate Selected Sub-Sectors: • Appliances: Colombia would eliminate its taris on 70 percent 5 Years, Linear of U.S. appliance exports immediately upon implementation of 57% the trade agreement. Taris on an additional 2 percent of exports 10 Years 13% will be eliminated over ve years, and taris on the remaining 28 percent of exports would be eliminated over ten years. • Furniture: Colombia would eliminate its taris on 32 percent of U.S. furniture exports over ve years. Taris on the remaining 68 percent of exports would be eliminated over ten years. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Colombia. The denition for consumer goods in this report, unless otherwise cited, includes products within Harmonized System (HS) Chapters 46, 66, 69, 70, 71, 73, 82, 84, 85, 87, 89-92, and 94-97. 2 U.S. Department of Commerce, U.S. Census Bureau, within NAICS 323, 327, 332, 333, 334, 335, 336, 337, and 339. Shipments used as a best available proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics, within NAICS 327, 332, 335, 336, 337, and 339 (based on non-seasonally adjusted data). 4 Data based on three-year average for 2008-2010. In Millions USD • Recreational Goods: Colombia would eliminate its taris on 29 percent of U.S. recreational goods exports immediately upon implementation of the trade agreement. Taris on an additional EU Could Gain a Tari Advantage 37 percent of exports would be eliminated over ve years, In the Colombian Consumer and taris on the remaining 34 percent of exports would be Goods Market eliminated over ten years. 18 16 14 Key States Exporting to Colombia 12 • Top U.S. states exporting consumer goods to Colombia include: 10 EU Florida, New York, California, Ohio, Georgia, Oregon, Illinois, Texas, 8 5 US Nevada, and Wisconsin. 6 MFN 4 2 0 Foreign Competition in Colombian Market • 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, Guatemala, and Honduras. Colombia grants some preferential access to MERCOSUR, CARICOM, Costa Rica, Nicaragua, and Panama. • Upon implementation of its agreement, EU consumer goods exporters would enjoy a 4.1 percent average tari advantage over U.S. exports. However, if the U.S.-Colombia TPA is implemented at the same time, U.S. exports would 6 have an immediate 1.7 percent average tari advantage over the EU. Other Key Commitments by Colombia for the Consumer Goods Sector 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. 5 U.S. Department of Commerce, U.S. Census Bureau. 6 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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