SOUTH

DAKOTA 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 and Colombia, improving on an already strong relationship. In particular, South Dakota 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 $8.6 MILLION IN 2010, COLOMBIA IS SOUTH DAKOTAS 18TH LARGEST EXPORT MARKET

Total South Dakota Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 41 percent of South Dakotas exports to C olombia will be duty free. This tariff elimination gives South Dakota exporters a cost advantage of up to $465,000 over similar products exported by competitors who do not have an F TA with C olombia. While South Dakota exporters typically face tariffs of 10-15 percent, 94 percent of C olombias exports to the United States in 2010 entered duty free. C TPA would level the playing field for South Dakota exporters.

Estimated Increases in U.S. Exports in Sectors Important to South Dakota Misc. Manufactures Fabricated Metal Products Processed F oods Corn Transportation Equipment Machinery 60.1% 56.4 36.2 21.0 16.1 14.9

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Crushing & grinding machinery $1,845,894 $276,884 LCD or LED panels 357,750 53,663 Trailer parts 318,352 31,835 Data processing machinery 279,293 27,929 Axles for rail vehicles 160,696 8,035 Mineral sorting machinery 151,676 up to 22,751 80,548 4,027 Sausage casing Trucks & tractors 72,420 10,863 50,000 7,500 Lifting & loading machinery Parts for d erricks 48,672 2,434 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Daktronics, Brookings, exports LED Davisco F oods International, Lake display s ystems to Colombia that Norden, exports protein concentrates to face tariffs of 15 p ercent. Colombia that face tariffs of 20 p ercent.

Kolberg Pioneer Inc., Yankton, exports rock crushers to Colombia that face tariffs of 15 p ercent. Contact: David Thomas, Director, Public Policy, Business Roundtable 202.496.3262, dthomas@brt.org

10 SOUTH DAKOTA EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY