Medical Equipment Sector

An Expert's View about Medical, Health and Cosmetics Products in Colombia

Posted on: 25 May 2012

The medical equipment sector accounted for nearly $247 million in U.S. exports to Colombia over 2008-10 (average) or 2.7 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. Medical Equipment Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Colombia is the 16th largest market for U.S. medical equipment exports. • Estimated duties paid on exports of U.S. medical equipment to Colombia were over $40 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • Nearly 98 percent of U.S. medical equipment exports to Colombia would receive duty-free treatment immediately upon implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian medical equipment taris currently average 7.6 percent, ranging up to 15 percent. Medical Equipment Sector Overview U.S. Medical Equipment Exports • The medical equipment sector accounted for nearly $247 million in U.S. exports to Colombia over 2008-10 (average) or 2.7 percent to Colombia Averaged $247 1 of total U.S. industrial exports to Colombia. Million • Top U.S. medical equipment exports to Colombia include electro- medical instruments, electro-diagnostic apparatus, diagnostic $270 reagents, and medical supplies. $260 • In 2009, U.S. production of medical equipment was over $98 2 billion. $250 • The U.S. medical equipment sector employed over 274,000 $240 3 workers in 2009. $230 $220 Improved Market Access for U.S. Medical Equipment 2008 2009 2010 Exporters to Colombia • Colombian medical equipment taris currently average 7.6 percent, ranging from 5 to 15 percent. 99% of U.S. Medical Equipment • Nearly 98 percent of U.S. medical equipment exports to Colombia would receive dut Exports to Colombia Would be Duty-y-free treatment immediately upon 4 implementation of the trade agreement. Free Within 5 Years • Taris on an additional 1 percent of medical equipment exports 1% 1% to Colombia would be eliminated over ve years and taris on the remaining 1 percent of medical equipment exports would be eliminated in equal cuts over ten years. Immediate 5 Years, Linear Key States Exporting to Colombia 10 Years • Top U.S. states exporting medical equipment to Colombia include: Florida, California, Tennessee, Texas, Minnesota, Massachusetts, 5 New Jersey, Wisconsin, Indiana, and North Carolina. 98% 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Colombia. The denition for medical equipment used in this report, unless otherwise cited, is the Uruguay Round Medical Equipment sector agreement and includes products within Harmonized System (HS) Chapters 38, 84, 85, 87, 90, and 94. Pharmaceuticals are not covered by this report. 2 U.S. Department of Commerce, U.S. Census Bureau, NAICS 334510, 334517, 339112, 339113 and 339114. Shipments used as a best available proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics, NAICS 334510, 339112, and 339113 (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 Medical Guatemala, and Honduras. Colombia grants some preferential Equipment Market access to MERCOSUR, CARICOM, Costa Rica, Nicaragua, and 9 Panama. 8 • Upon implementation of its agreement, EU medical equipment 7 exporters would enjoy a 4.5 percent average tari advantage over 6 5 U.S. exports. However, if the U.S.-Colombia TPA is implemented at EU 4 the same time, U.S. exports would have an immediate 0.9 percent US 6 3 average tari advantage over the EU. MFN 2 1 0 Other Key Commitments by Colombia for the Medical Equipment 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. Remanufactured Goods: Colombia will eliminate its prohibition on the importation of remanufactured goods upon entry into force of the Agreement. Most Colombian taris on remanufactured goods will be eliminated immediately upon entry into force of the agreement, while taris on a small number of remanufactured goods will phase out over ten years. 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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