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1. THE U.S.-COLOMBIA FREE TRADE
AGREEMENT:
BACKGROUND AND ISSUES
MEMBERS: Juan Camilo Gordillo
Jeimy López Bermúdez
Sergio Mauricio Murcia
Diego Torres Santos

2. WHAT IS FREE TRADE?

3. The Trade Agreement between the US and Colombia went into effect on May 15, 2012, the
agreement was signed by both countries in almost five years earlier, in November 22,
2006
For Colombia, the FTA with the United States has been part of its overall economic
development strategy, have agreed on an "action plan on labor rights" that included
specific and concrete measures by the Colombian government should be adopted to
eliminate tariffs and other barriers to bilateral trade in goods and services.

4. COLOMBIAN TARIFFS ON
GOODS FROM THE UNITED
STATES • the average US tariff on Colombian goods
was 3%, while the average tariff on US
goods Colombia was 12.5%. In 2010, about
90% of US
• US exports were consolidated into three
tariff levels: 0% to 5% in capital goods,
industrial goods and raw materials not
produced in Colombia; 10% of
manufactured products, with some
exceptions; and 15% to 20% in the
"sensitive" consumer goods

5. MARKET ACCESS
• The agreement eliminates 80% of tariffs on US exports of consumer and industrial
products to Colombia. An additional 7% of US exports will receive duty-free treatment
within five years of entry into force and most remaining tariffs will be eliminated
within 10 years after entry into force.
• free instant access tariffs on 77% of all agricultural tariff lines, accounting for 52% of
current US exports to Colombia will eliminate most tariffs within the next 15 years

6. INFORMATION
TECHNOLOGY
• Colombia agreed to join the
Agreement on Information
Technology in the World Trade
Organization (ITA) and
eliminate the non-tariff
products of information
technology and tariff barriers.

7. Textiles and clothing
• In textiles and apparel, products that
comply with the rules of origin
requirements agreement will receive
free treatment and quota
• A special textile safeguard will provide
for temporary tariff relief if imports
prove to be harmful to domestic
producers.
services
• In services trade, the two countries
agreed market access in most service
sectors, with very few exceptions
• Financial service providers of the United
States shall have full right to establish
subsidiaries or branches of banks and
insurance companies. Portfolio managers
will be allowed to provide portfolio
management services for both mutual
funds and pension funds in the partner
country, including funds managed
accounts of privatized social security.

8. INVESTMENT AND
GOVERNMENT PURCHASES
• Provisions investment will help establish a stable legal framework for foreign investors
in the partner country. All forms of investment should be protected, including
enterprises, debt, concessions and similar contracts and intellectual property
• US companies must be guaranteed purchases of a number of companies government of
Colombia, including oil company access.

9. IPR PROTECTION
The agreement will provide (IPR) protections for US companies and Colombian
trademark protection in
• In the protection of patents and trade secrets, the US-Colombia FTA limit the
grounds on which a country may revoke a patent agreement protects products
against unfair commercial use for a period of five years
• In music and motion picture property piracy, intellectual property provisions of
the agreement include penalties for piracy and counterfeiting and piracy
criminalizing end user.

10. PROCEDURES AND RULES OF
ORIGIN, CUSTOMS
• The agreement also includes
provisions customs procedures,
including requirements for
transparency and efficiency,
certainty and procedural fairness,
the exchange of information, and
special procedures for the release of
express shipments.

11. LABOR PROVISIONS
On October 30, 2007, the Senate of Colombia "overwhelmingly" approved the labor and
environmental modifications for the CFTA, which marks the end of the approval process
for the agreement in Colombia
The United States and Colombia agreed to adopt, maintain and enforce laws that
incorporate internationally recognized core labor rights including prohibition of the
worst forms of child labor
The agreement includes procedural safeguards to ensure that workers and employers
have a fair, equitable and transparent labor tribunals or courts access.

12. Administration reached an agreement with Colombia to amend NAFTA to require the
parties to "adopt, maintain and enforce their own laws and in practice," the five basic
principles of work.
1. freedom of association
2. the effective recognition of the right to collective bargaining
3. the elimination of all forms of forced or compulsory labor
4. the effective abolition of child labor and the elimination of the worst forms of child
labor
5. the elimination of discrimination in respect of employment and occupation.

13. ENVIRONMENTAL
PROVISIONS
• Both countries agreed to pursue a high level of environmental protection and to keep in
line with environmental laws in a manner that weakens or reduces the protections. The
agreement includes procedural safeguards to ensure fair, equitable and transparent
procedures for the administration and enforcement of environmental laws procedures.
• US and Colombia agreed to effectively enforce their own domestic environmental laws
and adopt, maintain and enforce laws and all other measures to fulfill its obligations
under the seven multilateral environmental agreements (MEAs) covered

14. U.S.-COLOMBIA TRADE
RELATIONS
Colombia is the third most
populous country in Latin
America, after Brazil and Mexico
country. Colombia's economy is
the fourth largest economy in
Latin America after Brazil,
Mexico

15. U.S.-COLOMBIA
MERCHANDISE TRADE
• Colombia represents a very
small percentage of the total
trade of the United States (1%
in 2013).
• Merchandise exports to the
United States to Colombia
totaled $ 16.5 billion in 2013,
while imports amounted to US
$ 21.4 billion

16. ANDEAN TRADE
PREFERENCE ACT
• Under the Andean Trade Preference Act, a
program of regional trade preference which
expired on July 31, 2013, the United States
extended the duty-free treatment to imports from
Colombia and other countries in the region
• Additional products that receive preferential tariff
treatment under the ATPDEA included certain
items in the following categories: petroleum and
petroleum products, textiles and clothing,
footwear, tuna in flexible packaging, and others.
Since the enactment of ATPDEA, Congress
extended ATPA preferences several times to
Colombia and other Andean countries for short
periods of time.

17. US FOREIGN DIRECT
INVESTMENT IN COLOMBIA
• Foreign direct investment in
Colombia on a historical cost
basis we totaled $ 8.4 billion in
2012, up from $ 6.5 billion in
2011 and $ 6.2 billion in 2010. In
2011, the largest amount was in
mining, which accounted for
40.7%, or $ 2.8 billion, of total US
FDI in Colombia

18. POTENTIAL ECONOMIC IMPACT
ON AGRICULTURE
• The USITC study found that one of the impacts of a free trade agreement between the
US and Colombia US agricultural exports to Colombia would increase:
• • The elimination of tariff and non-tariff barriers would likely result in a higher level of
US beef exports to Colombia. US beef imports from Colombia
• • removing barriers to trade and certain measures to support the Government of
Colombia under a CFTA would likely result in an increase in US exports to Colombia
grain. Rice would explain most of the increase, with yellow corn and wheat accounting
for the remaining balance.
• • US exports to Colombia in soybeans, soy products, and animal feed is likely to
increase under CFTA.

19. REFORM OF THE CRIMINAL CODE
• New article in the Criminal Code covers a wide range of practices
that negatively affect the fundamental labor rights and penalize
violators up to five years in prison. The Colombian government has
pledged to have legislation enacted by the Congress of Colombia on
June 15, 2011.

20. COOPERATIVES
• The Colombian government agreed to issue regulations implementing the law 2,010
cooperatives to June 15, 2011. The purpose of this regulation is
• clarify earlier cooperatives laws
• ensure consistency between the old laws and the new cooperative law
• Increase inspections of cooperatives
• increase penalties for violators of labor laws
• implement and strictly enforce the requirements that cooperatives are autonomous
and self-governing

21. TEMPORARY AGENCIES
• The Colombian government agreed to implement a scheme to prevent the use of
temporary service agencies to circumvent labor rights. This would include
measures such as improving the inspection process, the design of a new training
program for labor inspectors, and create databases to identify regions and
sectors where there has been abuse. The rate of application is to include a
mechanism for monitoring and reporting on all stakeholders to monitor
progress and compliance with labor laws.

22. COLLECTIVE AGREEMENTS
• The Colombian government has agreed to include in the bill on
amendments to the Criminal Code a provision that is a crime, subject
to imprisonment, to use collective pacts to undermine the right to
organize and bargain collectively. The adoption of the penal code
reform was carried out in June 2011. The provision prohibits
collective agreements to extend best conditions to non-union
workers.

23. Essential Services
• Colombia agreed that the MOH would collect the body of Colombian doctrine, case law,
and case law has narrowed the definition of essential services. The MSP spread this
information and guidelines for labor inspectors, judiciary, trade unions and employers
on schedule for April 22, 2011
ILO Office
• The Colombian government agreed to request the cooperation, advice and technical
assistance from the ILO to assist in the implementation measures of the Action Plan. It
is committed to working with the ILO to strengthen the presence and expand the
capacity and role of the ILO in Colombia. The US and Colombian governments
committed to work together to identify resources and sources of support needed.

24. PROTECTION PROGRAMS
The Colombian government planned and budgeted for the additional resources needed
for this expansion through increased allocation fiscal 2011 by 50% (approximately US $ 6
million) to provide adequate support to the expansion in the protection program. For
fiscal 2012, the Colombian government assessed the level of funding necessary to
support the program and the budget request submitted to Congress before the deadline
of July 30, 2011.

25. PLAN OF ACTION
MECHANISM
• Partner governments that have a bilateral agreement reached the decision to assess
progress in implementing the action plan so it discuss the progress of the action plan
commitments

26. RESPONSES TO ACTION PLAN
COLOMBIA
• When it unveiled the new labor system Colombia and research was favorable for
saints and their representatives from major companies as it came to labor
issues.
• The ENS stated that the Plan of Action was filed for the plan as significant for the
labor movement in Colombia. But the Andean region maintains that Colombia
has not complied with its commitment to the action plan to implement the
cooperative, many people from different sectors were affected by NAFTA with
the United States which is unfavorable for the country as states states is always
monopolize.

27. OPINIONS ON THE
AGREEMENT
• For united states is very important to be in different markets with
different countries and generate more exports becoming beneficiary
always with a treaty and that Colombia has not been the best for the
United States if as imports from Colombia to United States increased
by 45% to change united states had imported from Colombia to or
remained at 5%, which is well proven not been the best decision to
have trade agreements with United States

28. THE CONCERNS OF
COLOMBIAN FARMERS
• Farmers are those who have been most affected and are most concerned with
the CAFTA because united states Colombia have flooded agricultural products
from their country which directly affected the economy of Colombia mostly non-agricultural
small halos have the ability to stay in a very competitive and
demanding market. As with NAFTA is easier to import than to produce
agricultural products with the agreement because the tariff and other taxes
were very low

29. VIEWS LABOR
• Numerous US business groups strongly oppose the free trade agreement with
Colombia. They argue that the labor movement in Colombia are being targeted by
violence, and the government's commitment was to give workers greater halos both
economic and social security and always protecting your rights when
• Union members in support of a free trade agreement argue that an FTA would provide
jobs in coffee, flower, textile and other industries in Colombia. They argue that the
Uribe administration made much progress in protecting workers' rights and the Santos
Administration is doing these more concrete positive changes.

30. IMPLEMENTING THE LABOR
ACTION PLAN
• The United States and Colombia continue to cooperate on issues related to Labor
Action Plan. Colombian Labor Minister Rafael Pardo Rueda said he had agreed to
continue bilateral meetings at least until 2014 in the Action Plan commitments.
• Colombia is committed to the full implementation of the Action Plan and that both
governments hope to work together "to make these promises a reality for workers
• Some members of Congress on labor rights in Colombia recognizes that the
government has taken significant steps to protect the rights of workers and is working
at the highest levels of government to implement the Action Plan and to improve
conditions work in Colombia.

31. ACTIONS OF THE GOVERNMENT OF
COLOMBIA IN RESPONSE TO THE
CONCERNS OF THE US LABOR
• In response to the concerns of the United States with respect to labor rights in
Colombia, the Embassy of Colombia in the United States has been reporting the
progress that Colombia has made since 2001 in strengthening the rights, benefits and
security of trade unions in Colombia.
• Some Colombian government officials believe that the United States and Colombia FTAs
Labor Action Plan demonstrates an unprecedented level of cooperation between the
two countries in labor and can be a model for other FTAs in the workplace. For
example, thousands of workers have been added to the formal labor force that
exceeded the size of the informal labor force in 2013.
• The government has also made considerable efforts to increase the number of labor
inspectors in order to meet its commitments under the Action Plan. In late January
2014, Colombia achieved all of its commitments under the Action Plan, completing the
recruitment of 480 new labor inspectors before the deadline of December 2014.

34. ADVANTAGE
• Development of the economy
• Access to higher quality products
and lower prices
• Contact with technological and
scientific advances
• Increased employment
• Expansion of markets

35. DESADVANTAGE
• We open up to a new market with higher
purchasing power to our
• increased competition and production
capacity in some sectors
• Loss of opportunity for economic
development through the sale of
products at market prices
• exploitation of our natural resources