Metals and Ores Sector

An Expert's View about Metals, Metalworking, Glass and Minerals in Colombia

Posted on: 25 May 2012

The metals and ores sector accounted for over $350 million in U.S.exports to Colombia over 2008-10 (average) or 3.9 percent of total U.S. industrial exports to Colombia.

The U.S.-Colombia Trade Promotion Agreement Opportunities for the U.S. Metals and Ores 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. metal and ore exports. • Estimated duties paid on exports of U.S. metals and ores to Colombia were over $132 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • More than 84 percent of U.S. metal and ore exports to Colombia would receive duty-free treatment within ve years of implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian metal and ore taris currently average 9.2 percent, ranging up to 20 percent. Metals and Ores Sector Overview U.S. Metals and Ores Exports to • The metals and ores sector accounted for over $350 million in U.S. exports to Colombia over 2008-10 (average) or 3.9 percent of total Colombia Averaged $351.5 1 U.S. industrial exports to Colombia. Million • Top U.S. metals and ores exports to Colombia include ferrous waste and scrap, at-rolled products, and oil and gas line pipe. $500 • In 2009, U.S. production of metals and ores products was over 2 $400 $246 billion (or nearly 6 percent of U.S. manufacturing output). $300 • U.S. SMEs exported over $307 million in metals and ores to 3 Colombia in 2008. $200 • The U.S. metals and ores sector employed over 629,000 workers in $100 4 2009. $0 2008 2009 2010 Improved Market Access for U.S. Metals and Ores Exporters to Colombia 84% of U.S. Metals and Ores Exports • Colombian metals and ores taris currently average 9.2 percent, ranging from zero to 20 percent. to Colombia Would be Duty-Free • Over 41 percent of U.S. metals and ores exports to Colombia Within 5 Years would receive duty-free treatment immediately upon 5 implementation of the trade agreement. 16% • Taris on an additional 43 percent of metals and ores exports to Colombia would be eliminated over ve years and taris on 41% the remaining 16 percent of metals and ores exports would be Immediate eliminated in equal cuts over ten years. 5 Years, Linear 43% Selected Sub-Sectors: 10 Years • Non-Ferrous Metals: Colombia would eliminate its taris on 69 percent of U.S. non-ferrous metal exports immediately upon implementation of the trade agreement. Taris on an additional 23 percent of exports would be eliminated over ve years, and taris on the remaining 8 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 metals and ores used in this report, unless otherwise cited, includes products within Harmonized System (HS) Chapters 26, 72, 73, 74, 75, 76, 78, 79, 80, 81, and HS Headings 7106 to 7112. 2 U.S. Department of Commerce, U.S. Census Bureau, selected NAICS codes within 331, 332, and 339. Shipments used as a best available proxy for production. 3 U.S. Department of Commerce, U.S. Census Bureau, NAICS 331 and 332. 4 U.S. Department of Labor, Bureau of Labor Statistics, selected NAICS codes within 331, 332, and 339 (non-seasonally adjusted). 5 Data based on three-year average for 2008-2010. In Millions USD • Steel: Colombia would eliminate its taris on 40 percent of U.S. steel exports immediately upon implementation of the trade agreement. Taris on an additional 52 percent of exports would EU Could Gain a Tari Advantage be eliminated over ve years, and taris on the remaining 8 In the Colombian Metals and Ores percent of exports would be eliminated over ten years. Market 10 9 Key States Exporting to Colombia 8 • Top U.S. states exporting metals and ores to Colombia include: 7 6 Texas, Florida, Alabama, Pennsylvania, South Carolina, Missouri, 6 5 EU Connecticut, New York, Arkansas, and Ohio. 4 US 3 MFN 2 1 Foreign Competition in Colombian Market 0 • 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 metals and ores exporters would enjoy a 4.5 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 have an 7 immediate 1 percent average tari advantage over the EU. Other Key Commitments by Colombia for the Metals and Ores Sector 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. 6 U.S. Department of Commerce, U.S. Census Bureau. 7 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