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Prepared by the Internat ional Trade Administrat ion Manufacturing and Services Office of Trade P olicy Analy sis April 2008 U.S.-Colombi a Free Trade Agreement Ma rket Ac cess Results Metals and Ores Trade and Tariff s Th is s ec t or in cl u d es b o t h f er r ous an d n on -f er r ous met al s, met al p r od u ct s, an d o res. Pro d ucts covered in the World Trade Organization Uruguay Round sector agreement on steel and the initiative on non-ferrous metals are included in this sector. Metals and ores accounted for 3.7 percent of total U.S. industrial exports to Colombia in 2007, tot aling over $23 4 million. The t op U.S. exports in t his sector were ferrous waste and scrap, flat rolled steel, unwrought aluminum, and metal structures. Colombian t ariffs range between zero and 20 percent with an average of 9.2 percent. Colombian exports to the United States in this sector totaled nearly $729 million in 2007, or 10.8 percent of Colombia’s t otal industr ial exports t o the United States. Top Colombian exports t o the United States were unwrought and waste gold, ferronickel, seamed steel casings, and aluminum doors. U.S. t ariffs range betw een zero and 15 percent, averaging 2 percent. All Colombian exports in this sector enter the United States duty-free under the Andean Trade Preference Act (ATPA) and Andean Trade Promotion and Drug Eradication Act (ATPDEA) tariff preferences. Tariff Elimination Tar if f s will be phased ou t a cc ordin g t o f iv e tar if f e limination categories: immedia t e elimin at ion, equal cuts over five years, unequal cuts over five years, equal cuts over seven years, and equal cuts over t en years. Tariff eliminat ion under t he unequal five-year staging category will proceed with a 10 percent tariff cut in years one and two, a 30 percent cut in year three, a 20 percent cut in year four, and the remaining 30 percent tariff cut in year five. For metals and ores, 46 percent of U.S. industrial exports will receive duty-free treatment imm ediately upon implem entat ion of th e Agreement. Tariffs on another 3 7 percent of U.S. exports w ill be eliminated over five y ears. Duties on the remaining 17 percent of U.S. exports will be eliminated over ten years. Th e Un it ed St ates ag r ee d to conso li d ate al l ATPA a n d ATPDEA t ar if f p r ef er ences in to t h e f in al tariff elim ination schedules. This means that all met als and ores exports from Colombia will continue to receive dut y-free treat ment . Steel. Colombia will eliminate tariffs on 38 percent of U.S. steel exports immediately upon implem entation of the agr eement. Tariffs on another 51 percent of U.S. exports will be eliminated over five years. Duties on the r emaining 1 1 percent of U.S. exports will be elim inated over ten years. Non-Ferrous Metals. Colombia will eliminate tariffs on 77 percent of U.S. non-ferrous metals exports imm ediately upon implem entation of the agreem ent. Tariffs on another 15 percent of U.S. exports will be eliminated over five years. Duties on t he rem aining 8 p ercent of U.S. exports will be eliminated over ten years.

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Prepared by the International Trade AdministrationManufacturing and ServicesOffice of Trade Policy AnalysisApril 2008

U.S.-Colombia Free Trade AgreementMarket Access Results

Metals and Ores

Trade and Tariff s

This sector includes both ferrous and non-ferrous metals, metal products, and ores. Productscovered in the World Trade Organization Uruguay Round sector agreement on steel and theinitiative on non-ferrous metals are included in this sector.

Metals and ores accounted for 3.7 percent of total U.S. industrial exports to Colombia in 2007,totaling over $234 million. The top U.S. exports in this sector were ferrous waste and scrap, flatrolled steel, unwrought aluminum, and metal structures. Colombian tariffs range between zeroand 20 percent with an average of 9.2 percent.

Colombian exports to the United States in this sector totaled nearly $729 million in 2007, or 10.8percent of Colombia’s total industrial exports to the United States. Top Colombian exports tothe United States were unwrought and waste gold, ferronickel, seamed steel casings, andaluminum doors. U.S. tariffs range between zero and 15 percent, averaging 2 percent. AllColombian exports in this sector enter the United States duty-free under the Andean TradePreference Act (ATPA) and Andean Trade Promotion and Drug Eradication Act (ATPDEA) tariff preferences.

Tariff Elimination

Tariffs will be phased out according to five tariff elimination categories: immediate elimination,equal cuts over five years, unequal cuts over five years, equal cuts over seven years, and equalcuts over ten years. Tariff elimination under the unequal five-year staging category will proceedwith a 10 percent tariff cut in years one and two, a 30 percent cut in year three, a 20 percent cutin year four, and the remaining 30 percent tariff cut in year five.

For metals and ores, 46 percent of U.S. industrial exports will receive duty-free treatmentimmediately upon implementation of the Agreement. Tariffs on another 37 percent of U.S.exports will be eliminated over five years. Duties on the remaining 17 percent of U.S. exportswill be eliminated over ten years.

The United States agreed to consolidate all ATPA and ATPDEA tariff preferences into the finaltariff elimination schedules. This means that all metals and ores exports from Colombia willcontinue to receive duty-free treatment.

Steel. Colombia will eliminate tariffs on 38 percent of U.S. steel exports immediately uponimplementation of the agreement. Tariffs on another 51 percent of U.S. exports will beeliminated over five years. Duties on the remaining 11 percent of U.S. exports will be eliminatedover ten years.

Non-Ferrous Metals. Colombia will eliminate tariffs on 77 percent of U.S. non-ferrous metalsexports immediately upon implementation of the agreement. Tariffs on another 15 percent of U.S. exports will be eliminated over five years. Duties on the remaining 8 percent of U.S.exports will be eliminated over ten years.