High-Tech Instrumentation Sector

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

Posted on: 25 May 2012

The high-tech instruments sector accounted for over $188 million in U.S. exports to Colombia over 2008-10 (average) or 2.1 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. High-Tech Instrumentation Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Colombia is the 22nd largest market for U.S. high-tech instrument exports. • Estimated duties paid on exports of U.S. high-tech instrumentation products to Colombia were over $34 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • More than 99 percent of U.S. high-tech instrument exports to Colombia would receive duty-free treatment immediately upon implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian high-tech instrument taris currently average 6.9 percent, ranging up to 15 percent. High-Tech Instruments Sector Overview U.S. Instrumentation Exports to • The high-tech instruments sector accounted for over $188 million in U.S. exports to Colombia over 2008-10 (average) or 2.1 percent Colombia Averaged $188.2 1 of total U.S. industrial exports to Colombia. Million • Top U.S. high-tech instruments exports to Colombia include remote measuring equipment, surveying high-tech instruments, $250 and high-tech instrument parts. • In 2009, U.S. production of high-tech instruments was over $43 $200 2 billion. $150 • The U.S. high-tech instruments sector employed over 191,000 $100 3 workers in 2009. $50 $0 Improved Market Access for U.S. High-Tech 2008 2009 2010 Instruments Exporters to Colombia • Colombian high-tech instruments taris currently average 6.9 percent, ranging from zero to 15 percent. • Over 99 percent of U.S. high-tech instruments exports to All U.S. Instrumentation Exports to Colombia would receive duty-free treatment immediately upon Colombia Would be Duty-Free Within 4 implementation of the trade agreement. 5 Years • Taris on less than 1 percent of high-tech instruments exports to 1% Colombia would be eliminated over ve years. Selected Sub-Sectors: Immediate • Scientic Equipment: Colombia would eliminate its taris on 99 percent of U.S. scientic equipment exports immediately upon 5 Years, Linear implementation of the trade agreement. Taris on the remaining 1 percent of exports would be eliminated over ve years. 99% Key States Exporting to Colombia • Top U.S. states exporting high-tech instruments to Colombia include: Texas, Florida, California, Oregon, Illinois, Massachusetts, 5 Pennsylvania, New York, Colorado, and Maryland. 1 Global Trade Atlas. Calculation based on import data as reported by Colombia. The denition for high-tech instruments used in this report, unless otherwise cited, is based on Harmonized System (HS) Headings 7107, 9001-02, 9011-13, 9015, and 9023-32. 2 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS codes within 333 and 334. Shipments used as a best available proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics, (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 • 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 Guatemala, and Honduras. Colombia grants some preferential Instrumentation Market access to MERCOSUR, CARICOM, Costa Rica, Nicaragua, and 8 Panama. 7 • Upon implementation of its agreement, EU high-tech 6 instrumentation exporters would enjoy a 5.4 percent average 5 tari advantage over U.S. exports. However, if the U.S.-Colombia 4 EU TPA is implemented at the same time, U.S. exports would have an 3 US 6 immediate 1.3 percent average tari advantage over the EU. MFN 2 1 Other Key Commitments by Colombia for the H 0igh- Tech Instrumentation 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. 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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