$1,000,000,000 Tax on U.S. Exports to Colombia

http://7thspace.com/headlines/280400/1000000000_tax_on_us_exports_to_c...

$1,000,000,000 Tax on U.S. Exports to Colombia

WASHINGTON—Commerce Secretary Carlos M. Gutierrez today released the following statement regarding the estimated tariffs imposed on American-made goods exported to Colombia. Since the signing of the U.S.-Colombia Trade Promotion Agreement (TPA), American goods have faced more than an estimated $1 billion in Colombian tariffs. Tariffs are taxes that make American goods more expensive and less competitive.

“Yesterday at 8:51 p.m., the Colombia Tariff Ticker rolled to a staggering $1 billion. The ticker tracks the estimated tariffs imposed on American-made goods entering Colombia since the signing of the U.S.-Colombia Trade Promotion Agreement 531 days ago. The Agreement would remove tariffs on U.S. exports to Colombia if approved by Congress. Every single second that goes by without a vote on the Agreement costs roughly $22, and nearly $2 million every day.

“For 16 years, Congress has decided to allow Colombian goods into the U.S. market duty-free giving Colombian workers access to the U.S. market, while U.S. workers face barriers to Colombia. Yet, the House’s recent rules change has effectively shelved the very trade agreement that would remove Colombia’s tariffs on American products and agriculture. Changing the rules in the middle of the game has forced U.S. workers, farmers and ranchers to the sideline, and denied them the level playing field they deserve.

“American-made exports, up nearly 13 percent last year, are providing a critical spark to our economy at a time when American families are facing economic challenges. Congress needs to pass the U.S.-Colombia TPA so we can lift the billion-dollar burden on our exports and institutionalize permanent, fair, and two-way free trade with Colombia."

Today, more than 90 percent of Colombian products enter the United States duty free, as they have for more than 16 years with strong Congressional support under the Andean Trade Preference Act (ATPA). The “Colombia Tariff Ticker" highlights the unfair playing field on which American exporters currently operate, and likewise the money they could save if Congress approves the U.S.-Colombia TPA.

Colombia is the second-largest market for U.S. agriculture in the Western Hemisphere after the NAFTA market. The U.S.-Colombia TPA will be of particular benefit to U.S. small- and medium-sized businesses (SMEs). More than 10,000 U.S. companies export to Colombia, of which 8,500 are SMEs.

The tariffs paid by U.S. exporters to Colombia displayed on the Colombia Tariff Ticker are an estimate based on data from the World Trade Atlas and Colombian tariff schedules. This includes the best estimate of the variable effect of Colombia’s agricultural price bands. To visit and download the Colombia Tariff Ticker, visit trade.gov.

By romy on May 5, 2008, 18:46 in Politics & the war.

romy says on May 5, 2008, 18:48:

I wonder how the Colombian government is planning to make-up the significant revenue loss?

Mr. Hollywood says on May 5, 2008, 18:49:

Given the IVA I suspect there's a very good argument they would make it up on volume.

bogotabrian says on May 5, 2008, 18:55:

I can understand why the government in Colombia would do this to save Colombian jobs but some duty on imports I don't understand, like on an IPOD for example. There is a huge underground economy in Colombia because of many not well thought out laws. There is a lot of tax revenue lost out here.

miamimike says on May 6, 2008, 05:06:

One can only wonder why a One Sided Accord such as this one with Col was EVER signed in the first place giving one country such an unfair lopsided trade advantage over a purported fair trade partner.Its been a great deal for Colombia, not so good for our industries who were strapped with import tariffs as high as 35%.These Trade Deals need to be vetted and examined more closely to insure the accords are equitable for all partners. Clearly that was Not the Case when this agreement was hammered out.

"Many Colombian products already enter the United States duty-free under the 16-year-old Andean Trade Preferences Act, and the new pact would cement that arrangement, helping to promote growth and provide jobs. Administration officials say the agreement would help level the playing field for U.S. companies, eliminating Colombian tariffs as high as 35% on their products."

http://www.latimes.com/news/nationworld/world/la-fg-bush13mar13,1,3717...

Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we." GW Bush

morphus says on May 6, 2008, 05:20:

Its time to start taxing all that Colombian yayo coming into the U.S.

tasco66 says on May 6, 2008, 07:38:

"One can only wonder why a One Sided Accord suchas this one with Col was EVER signed in the first place"

I think it’s even harder to understand why Americans would oppose a treaty that would eliminate taxes on US exports to Colombia

Veni, vidi, vici

Brians says on May 6, 2008, 07:52:

Because it is easier to pcify people rather than educate them. The democrates would rather use it as a tool for election rather than educate the general popluation of idiots that this is actually good for them.

romy says on May 6, 2008, 08:11:

From a Colombian perspective (and little concern for matters in the US), I think it's harder to understand why Uribe is so gun-ho about having this agreement approved. As I (and others)have stated before, this agreement was derailed perhaps for the wrong reasons but in the end it works for me.

miamimike says on May 6, 2008, 08:28:

One can only wonder why a One Sided Accord suchas this one with Col was EVER signed in the first place"

I think it’s even harder to understand why Americans would oppose a treaty that would eliminate taxes on US exports to Colombia

Veni, vidi, vici
=========================================================

Tasco, that's an easy one! When the Uribe Government investigates in a more through manner the deaths of those Newspaper Reporters and many trade Unionists.

Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we." GW Bush

tasco66 says on May 6, 2008, 08:44:

miamimike the one that is being punished is the American exporter, another typical dumb left wing policy

Veni, vidi, vici

miamimike says on May 6, 2008, 11:13:

Tasco-the time to have rectified this Problem was on DAY ONE when this Inequity took place. Something this one sided never should have been signed into law at all. Blame it on the US/Colombian officials who iniated the accords back in the early 90s. The American Exporter has been punished from day One yet no one ever complained until a few months ago. And the country who benefited the most(Col) is complaining the loudest. Where were their complaints 17 years ago???

Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we." GW Bush

Mr. Hollywood says on May 6, 2008, 11:15:

Don't forget, these exemptions for Colombian products EXPIRE every year or so. So things could change dramatically for the Colombian exporters currently benefiting from the lopsided arrangement.

lpdiver says on May 6, 2008, 17:28:

I wonder how the peso to dollar exchange rate would move if the act is passed?

t

"cook some rice!"

cali373 says on May 9, 2008, 11:32:

bogotabrian

I agree with you. Electronics are very expensive in Colombia compared to the US and Mexico. however Colombia should not just center on lower prices on US products but also Asian products. Remember competition descreases prices not less tariffs, even though less tariffs hellp.

Smile if you are a thinker!