Electrical Equipment Sector

An Expert's View about Electrical, Measuring and Testing Equipment in Colombia

Posted on: 25 May 2012

The electrical equipment sector accounted for nearly $200 million in U.S. exports to Colombia over 2008-10 (average) or 2.2 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. Electrical Equipment Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Colombia is the 20th largest market for U.S. electrical equipment exports. • Estimated duties paid on exports of U.S. electrical equipment to Colombia were nearly $63 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • More than 76 percent of U.S. electrical equipment exports to Colombia would receive duty-free treatment within ve years of implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian electrical equipment taris currently average 8.9 percent, ranging up to 20 percent. Electrical Equipment Sector Overview U.S. Electrical Equipment Exports • The electrical equipment sector accounted for nearly $200 million to Colombia Averaged $197.4 in U.S. exports to Colombia over 2008-10 (average) or 2.2 percent 1 of total U.S. industrial exports to Colombia. Million • Top U.S. electrical equipment exports to Colombia include laser disks, generating sets, and parts of electronic calculation devices. $220 • In 2009, U.S. production of electrical equipment products was $210 over $189 billion (or over 4 percent of total U.S. manufacturing 2 $200 production). $190 • The U.S. electrical equipment sector employed over 969,000 3 $180 workers in 2009. $170 $160 Improved Market Access for U.S. Electrical 2008 2009 2010 Equipment Exporters to Colombia • Colombian electrical equipment taris currently average 8.9 percent, ranging from zero to 20 percent. • Over 61 percent of U.S. electrical equipment exports to 76? o? U.S. Electrical Equipment Colombia would receive duty-free treatment immediately upon 4 Exports to Colombia ? ould be Dut? ? implementation of the trade agreement. ? ree ? ithin ? ? ears • Taris on an additional 15 percent of electrical equipment exports to Colombia would be eliminated over ve years. Taris on less than 1 percent of exports will be eliminated over seven years, 23% Immediate and taris on the remaining 23 percent of electrical equipment exports would be eliminated in equal cuts over ten years. 5 Years, 1% Linear 7 Years 15% Key States Exporting to Colombia 61% 10 Years • Top U.S. states exporting electrical equipment to Colombia include: Florida, Texas, California, Oregon, South Carolina, Illinois, 5 Tennessee, Wisconsin, Minnesota, and Georgia. 1 Global Trade Atlas. Calculation based on import data as reported by Colombia. The denition for electrical equipment in this report, unless otherwise cited, is based on products within Harmonized System (HS) Headings 8443, 8470, 8501-02, 8504-05, 8507, 8511, 8516, 8518, 8522-23, 8531, 8536, 8539, 8543-48, 9007-08, 9010, 9013-14, and 9022. 2 U.S. Department of Commerce, U.S. Census Bureau, within NAICS 327, 331, 333, 334, 335, and 336. Shipments used as a best available proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics, within NAICS 334, 335, and 336 (non-seasonally adjusted data). 4 Data based on three-year average for 2008-2010. 5 U.S. Department of Commerce, U.S. Census Bureau. In Millions USD Foreign Competition in Colombian Market EU Could Gain a Tari Advantage • Colombia signed trade agreements with both the EU and Canada In the Colombian Electrical in November, 2008. Additionally, Colombia has FTAs in force with the rest of the Andean Community, Chile, Mexico, El Salvador, Equipment Market Guatemala, and Honduras. Colombia grants some preferential 10 access to MERCOSUR, CARICOM, Costa R 9ica, Nicaragua, and 8 Panama. 7 • Upon implementation of its agreement, EU electrical equipment 6 5 exporters would enjoy a 6.3 percent average tari advantage over EU 6 4 US U.S. exports. 3 MFN 2 1 Other Key Commitments by Colombia for the 0 Electrical Equipment Sector 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. 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. 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. 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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