Footwear and Travel Goods Sector

An Expert's View about Textiles, Apparel and Accessories in Colombia

Posted on: 25 May 2012

The footwear and travel goods sector accounted for nearly $4.5 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. Footwear and Travel Goods Sector The U.S.-Colombia Trade Promotion Agreement would provide signicant commercial opportunities for U.S. exporters: • Colombia is the 27th largest market for U.S. footwear and travel good exports. • Estimated duties paid on exports of U.S. footwear and travel goods to Colombia were over $2.5 million from 2008 to 2010. Tari elimination could allow U.S. rms to reinvest in technology and production improvements. • Nearly 87 percent of U.S. footwear and travel good exports to Colombia would receive duty-free treatment immediately upon implementation of the U.S.-Colombia Trade Promotion Agreement; Colombian footwear and travel good taris currently average 19.5 percent, ranging up to 20 percent. Footwear and Travel Goods Sector Overview U.S. Footwear and Travel Goods • The footwear and travel goods sector accounted for nearly $4.5 million in U Exports to Colombia Averaged .S. exports to Colombia over 2008-10 (average) or less 1 than 1 percent of total U.S. industrial exports to Colombia. $4.5 Million • Top U.S. footwear and travel goods exports to Colombia include cases, bags, and rubber footwear. $7 • In 2009, U.S. production of footwear and travel goods was over $6 2 $2.4 billion. $5 • The U.S. footwear and travel goods sector employed over 29,000 $4 3 workers in the United States in 2009. $3 $2 $1 Improved Market Access for U.S. Footwear and Travel $0 2008 2009 2010 Goods Exporters to Colombia • Colombian footwear and travel goods taris currently average 19.5 percent, ranging from 15 to 20 percent. • Nearly 87 percent of U.S. footwear and travel goods exports to Colombia would receive duty-free treatment immediately 4 upon implementation of the trade agreement. • Taris on the remaining 13 percent of footwear and travel goods 87% of U.S. Footwear and Travel exports would be eliminated in equal cuts over ten years. Goods Exports to Colombia Would be Duty-Free Immediately U.S. Footwear Industry Concerns Addressed by the U.S.-Colombia Trade Agreement 13% • U.S. taris on sensitive rubber/fabric and plastic/protective footwear items imported from Colombia would be eliminated in ten annual stages following implementation of the U.S.-Colombia Immediate FTA. 10 Years Key States Exporting to Colombia 87% • Top U.S. states exporting footwear and travel goods to Colombia include: Florida, Idaho, California, Montana, New York, Texas, 5 Wisconsin, New Jersey, and Illinois. 1 Global Trade Atlas. Calculations by the U.S. Department of Commerce based on import data as reported by Colombia. The denition for footwear and travel goods used in this report, unless otherwise cited, is based on Harmonized System (HS) Chapters 42 and 64. 2 U.S. Department of Commerce, U.S. Census Bureau, within NAICS 316. Shipments used as a best available proxy for production. 3 U.S. Department of Labor, Bureau of Labor Statistics, within NAICS 316 (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 Footwear and Guatemala, and Honduras. Colombia grants some preferential Travel Goods Market access to MERCOSUR, CARICOM, Costa Rica, Nicaragua, and 25 Panama. • Upon implementation of its agreement, EU footwear and 20 travel good exporters would enjoy a 13.6 percent average tari 15 advantage over U.S. exports. However, if the U.S.-Colombia TPA EU is implemented at the same time, U.S. exports would have an 10 US 6 immediate 2.3 percent average tari advantage over the EU. MFN 5 0 Other Key Commitments by Colombia for the Footwear and Travel Goods 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. 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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