Why Support the Trade Promotion Agreements with Peru, Colombia and Panama?
They Will Level the Playing Field!


It's simple, really--the trade agreements with Peru, Colombia, and Panama are about leveling the playing field for American workers, farmers, and companies that have lost ground against foreign competition in these markets.

The United States unilaterally opened its market to these three countries and many of their neighbors through the Andean Trade Preference Act, the Caribbean Basin Initiative, and the GATT Uruguay Round years ago.

Today:
  1. 90% of the imports from these countries enter our market duty free.
  2. Exports of U.S. manufactured goods to Peru, Colombia, and Panama face average tariffs of 10%, 11%, and 7%, respectively.
  3. U.S. exporters are losing market share to foreign competition. U.S. wheat producers have suffered from Argentine competition--their market share has dropped from 80% to 7% in Peru due to the Andean community's trade deal with Mercosur.
With the agreements:
  1. More than 80% of U.S. consumer and industrial products and half of current U.S. farm exports will enter Peru, Colombia, and Panama duty-free immediately, with remaining tariffs phased out over time.
  2. Within five years, the TPAs will boost U.S. exports of manufactured goods by $4.4 billion per year according to the U.S. Chamber of Commerce.
  3. Upon full implementation, the TPAs will increase farm exports by $1.4 billion per year to Peru and Colombia according to the American Farm Bureau Federation.
These agreements make a two-way street out of our relationship with these countries and level the playing field for U.S. workers, farmers, and companies.



Latin America Trade Coalition | 1615 H Street, N.W. | Washington, D.C. 20062
www.latradecoalition.org

April 26, 2007

Did you know?

Consider these examples from the U.S.-Peru Trade Promotion Agreement:
  • Now we pay 12-20% tariffs on processed foods. They pay 0%.
  • Now we pay 12% on automobiles, furniture, chemicals, mineral fuels, coal, and audiovisual products. They pay 0%.
  • Now we pay 12% on wheat, corn, metal products, and cotton. They pay 0%.



    • Overheard      

    [T]hese agreements would expand U.S. access to 77 million consumers. The growth potential with these countries is outstanding. In the 12 months ending in February 2007, two-way trade totaled $28 billion.... Once we have stitched together these agreements--NAFTA, CAFTA, Chile, Colombia, Panama and Peru--we'll have FTAs with over two-thirds of the Hemisphere's economy. --Secretary Carlos Gutierrez, From Remarks to Council on Foreign Relations, New York City