100 Questions and Answers on the US - Colombian FTA

COFFEE REGION

1. How much is the coffee export to the U.S. estimated to grow with the FTA?
This is estimated to grow up to 12% only in the first year of the Agreement.

 2. How many products in the region have an opportunity in this market?
An estimated 278 products that are manufactured in the coffee triangle can enter with zero tariffs to the U.S. market.

3. What sectors will generate immediate business opportunities?
Apparel, machinery, and mechanical and electrical equipment, plastic and rubber articles, as well as those metal based products.

4. How much would these exports represent to the region?
There is a potential market of over USD 104 billion and a 12.4% average growth in regional exports.

5. What other sectors could business people benefit from in this region?
…tourism, logistics, and outsourcing services (BPO).

ANTIOQUIA

 1. What advantages does Antioquia have with the U.S. FTA?
The department has recognized expertise in this field, as it already sends 44% of its exports to this market.

2. What are the specific opportunities in the department?
Of the 603 Colombian industrial and agricultural goods of high immediate potential in the U.S. Antioquia produces, or is capable of producing, 485.

 3. Where are the best options concentrated on?
In the apparel sector, there are 135 products that entered with an average tariff of 15.4%, and now this has been reduced to zero.

4. What products?
…high-value items, such as sweaters, trousers and other woven products.

5. What are the main destinations for products Antioquia?
The states in which Antioquia could sell the most are, in order, California, New York, Texas, Illinois, Ohio, Michigan and Florida.

CARIBBEAN REGION

 1. How many business opportunities have been identified for the Caribbean within the FTA?
Of the 603 business opportunities that exist between Colombia and the U.S. through the FTA, 177 are in the departments of the Caribbean Coast.

 2. To which sectors do these opportunities correspond?
Of these, 92 are agricultural, 39 agro, 16 of livestock, 6 rubber and its derivatives, 2 of wood and wood products, and 6 of precious metals and jewelry.

3. Of the agricultural sector, what are the products with highest potential?
These include eggplant, mangoes, lemons, watermelons, sheep meat, cocoa powder and rubber products.

 4. In the case of eggplant, how much does the U.S. consume?
It is estimated that the U.S. market annually imports USD 35 million of this product, with annual growth of 17% since 2007.

 5. In sheep, what are the opportunities?
The U.S. invests in sheep meat USD 88 million each year, which is a great opportunity for the goat industry of La Guajira and Cesar.

BOGOTA-region

 1. What are the business opportunities in the Bogota area with the FTA?
It is estimated that the U.S. is importing in 62 sub-sectors, of which the Bogota region's has an export capacity of 16.

 2. What possibilities exist in Bogotá?
The capital has a comparative advantage in 8 sub-sectors, such as furniture, clothing, leather, textiles and woven items, aircraft, motors, generators and transformers, and nonmetallic minerals.

3. And the greater Bogota region?
Within the 25 sub-sectors, 17 have comparative advantage, mainly in choke ovens; publishing and printing activities, metal casting, among others.

 4. What is the forecast for agribusiness?
Bogota has export capacity in 8 sub-sectors: fruit, green coffee, candy, cocoa and its raw materials.

5. How will entrepreneurs in the city and in the region be trained so as to take advantage of the FTA?
The Chamber of Commerce and PROCOLOMBIA scheduled a series of seminars on the conditions of access and opportunities in the agribusiness, textile and clothing industry. Seminars on agribusiness in the U.S. (FDA requirements) service opportunities, and government procurement, as well as online courses on various topics of interest are also scheduled.

VALLE

 1. What is the outlook for Cali and Valle del Cauca on the FTA?
The department of Valle del Cauca is one of the departments will benefit the most from the FTA with the U.S., with more than 90% of what is produced in that region corresponding to non-mining exports.

2. What are the major business opportunities?
This region not only has the opportunity to sell more products traditionally exported, such as sugar, confectionery, coffee, clothing and some chemicals, but it will also be able to expand its exports of products such as leather, wood products, metal furniture, liquors, paints and soft drinks, among others.

 3. Would these products be able to reach the West Coast of the U.S.?
Several of these goods are to reach other destinations. However, the goal is to diversify the supply to other regions in the U.S., such as the West Coast, where only 5% of the Valle exports currently reach.

 4. What other products in that region may enter the U.S. market?
Ethnic products also have potential for growth, such as “majar blanco.” The U.S. imports USD 4 billion of these types of consumer goods, and Colombia only exports USD 23 million. Household items also have options (in California), as well as plastic products and auto parts.

5. In general, how many export sectors are there in Valle?
These include confectionery, cardboard, pharmaceuticals, printing and publishing, knitted fabrics, plastics, packaging, oils and fats, fruit, and vegetables.

Santander

 1. How many business opportunities have been identified for Santander and Norte de Santander?
Studies have shown that these departments of eastern Colombia have approximately 283 potential export products to U.S. market

2. Which sectors do these products belong to?
Basically, this includes apparel, machinery and mechanical equipment, plastics and rubber articles, footwear, base metals and its derivatives, agribusiness and jewelry.

3. What are the pros for export from this region?
From Santander, products can be exported to the U.S. without tariffs or at lower rates. There is also a proven production in terms of supply.

 4. How much is estimated this market?
The identified opportunities for Santander have an estimated market to exceed USD 113 billion and an average growth of 14.2%

5. What immediate changes are expected in the productive sector of the region?
The competition will push an improvement in competitiveness in the poultry sector, as well as in the hog farming and other livestock sectors.