Wood and Lumber Sector

An Expert's View about Forestry, Logging and Wood Products in Colombia

Posted on: 26 May 2012

The wood and lumber sector accounted for over $4.3 million in U.S. exports to Colombia over 2008-10 (average) or less than 1 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. Wood and Lumber Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Estimated duties paid on exports of U.S. wood and lumber to Colombia were over $1.5 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in production improvements. • More than 84 percent of U.S. wood and lumber exports to Colombia would receive duty-free treatment within ve years of implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian wood and lumber taris currently average 12 percent, ranging up to 20 percent. Wood and Lumber Sector Overview U.S. Wood and Lumber Exports to • The wood and lumber sector accounted for over $4.3 million in Colombia Averaged $4.3 Million U.S. exports to Colombia over 2008-10 (average) or less than 1 1 percent of total U.S. industrial exports to Colombia. • Top U.S. wood and lumber exports to Colombia include $6 construction formwork, railway ties, parts of tools, and pallets. $5 • In 2009, U.S. production of wood and lumber products was over 2 $4 $54 billion. $3 • The U.S. wood and lumber sector employed approximately 3 449,000 workers in 2009. $2 $1 Improved Market Access for U.S. Wood and Lumber $0 2008 2009 2010 Exporters to Colombia • Colombian wood and lumber taris currently average 12 percent, ranging from 5 to 20 percent. • Over 61 percent of U.S. wood and lumber exports to Colombia would receive duty-free treatment immediately upon 4 implementation of the trade agreement. • Taris on an additional 24 percent of wood and lumber exports 85% of U.S. Wood and Lumber to Colombia would be eliminated over ve years and taris on Exports to Colombia Would be Duty- the remaining 15 percent of wood and lumber exports would be eliminated in equal cuts over ten years. Free Within 5 Years 15% Key States Exporting to Colombia Immediate • Top U.S. states exporting wood and lumber to Colombia include: Florida, Virginia, Texas, Ohio, Wisconsin, Georgia, Alabama, 5 Years, 5 California, and Arizona. Linear 24% 10 Years 61% 1 Global Trade Atlas. Calculation by the U.S. Department of Commerce based on import data as reported by Colombia. The denition for wood and lumber export gures used in this report, unless otherwise cited, is based on Harmonized System (HS) Chapter 44. 2 U.S. Department of Commerce, U.S. Census Bureau, within NAICS 321 and 337. 3 U.S. Department of Labor, Bureau of Labor Statistics, within NAICS 321 and 337. 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 Wood and Guatemala, and Honduras. Colombia grants some preferential Lumber Market access to MERCOSUR, CARICOM, Costa Rica, Nicaragua, and 14 Panama. 12 • Upon implementation of its agreement, EU wood and lumber 10 exporters would enjoy a 2.7 percent average tari advantage over 8 U.S. exports. However, if the U.S.-Colombia TPA is implemented at EU 6 the same time, U.S. exports would have an immediate 2.3 percent US 6 average tari advantage over the EU. 4 MFN 2 Other Key Commitments by Colombia for the Wood 0 and Lumber 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. 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 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: 26 May 2012

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