ILLINOIS

AND COLOMBIA A GROWING PARTNERSHIP

A U.S.-Colombia Trade Promotion Agreement (CTPA) has the potential to increase both trade and investment between the United States in Colombia, improving on an already strong relationship. In particular, Illinois stands to gain from increased business ties, as the CTPA will create jobs at home through increased export market access for both goods and services, reduced prices for manufacturers, and an improved investment environment. AT $307 MILLION IN 2010, COLOMBIA IS ILLINOIS 27TH LARGEST EXPORT MARKET

Total Illinois Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 66 percent of Illinois exports to Colombia will be duty free. This tariff elimination gives Illinois exporters a cost advantage of up to $27 m illion over similar products exported by competitors who do not have an FTA with Colombia. While Illinois exporters typically face tariffs of 10-15 percent, 94 percent of Colombias exports to the United States in 2010 entered duty free. C TPA would level the playing field for Illinois exporters.

Estimated Increases in U.S. Exports in Sectors Important to Illinois Pork Products Fabricated Metal Products Processed F oods Chemicals Corn Machinery 72.3% 56.4 36.2 22.6 21.0 14.9

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Dumping machinery $47,220,000 $7,083,000 Transmission apparatus 17,630,436 up to 2,644,565 Axles for rail vehicles 13,790,235 689,512 Railway cars 13,324,000 2,664,800 Salts 8,630,662 431,533 Thermostats 6,101,077 up to 915,162 5,418,714 812,807 Static converters Protein concentrates 5,183,499 1,036,700 4,780,393 717,059 Storage batteries Plastic plates and sheets 4,461,943 892,389 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Aurora Pumps, North Aurora, Baxter Inc., Deerfield, exports exports machinery parts to medical supplies to Colombia that Colombia that face tariffs of 5- face tariffs of 5-10 p ercent. 10 percent. Filtration Group Inc., Joliet, John Deere, Moline, exports exports air and other filters to heavy equipment and parts to Colombia that face tariffs of 10- Colombia that face tariffs of 5- 15 p ercent. 15 percent. Solae Inc., Gibson City, exports Nalco Company, Naperville, protein concentrates to Colombia exports industrial chemicals to that face tariffs of 20 p ercent. Colombia that face tariffs of 5- 10 p ercent. Archer Daniels Midland, Decatur, exports salts, corn meal, wheat, Bunn-O-Matic Corporation, and protein concentrates to Springfield, has exported Colombia that face tariffs of 5-20 machinery to Colombia that percent. faces tariffs of 5-10 p ercent.

Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 ILLINOIS EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY