OKLAHOMA

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, Oklahoma 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 $74 MILLION IN 2010, COLOMBIA IS OKLAHOMAS 15TH LARGEST EXPORT MARKET

Total Oklahoma Exports to Colombia

(millions of dollars)

Source: U.S. Department of Commerce

Upon implementation of the CTPA, more than 63 percent of Oklahomas exports to Colombia will be duty free. This tariff elimination gives Oklahoma exporters a cost advantage of up to $5.5 million over similar products exported by competitors who do not have an F TA with C olombia. While Oklahoma 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 Oklahoma exporters.

Estimated Increases in U.S. Exports in Sectors Important to Oklahoma Fabricated Metal Products Processed F oods Plastics & Rubber Products Transportation Equipment Machinery Wheat & Wheat Products 56.4% 36.2 22.6 16.1 14.9 11.2

Source: U.S. International Trade Commission

 Value of Exports Potential Product to Colombia (2010) Duty Savings Static converters $9,704,040 $1,455,606 Cotton 5,306,440 530,644 Parts for liquid pumps 4,105,386 up to 410,539 Electric motor parts 3,742,145 374,215 Wheat 2,981,199 up to 387,556 2,854,426 285,443 Boring machinery parts 2,851,340 285,134 Electric motors Instruments for measuring pressure 2,105,911 315,887 Transmission shafts 1,394,784 up to 209,218 Bulldozers & angledozers 1,164,800 116,480 COMPANIES WHOSE EXPORTS BECOME DUTY FREE IMMEDIATELY UPON IMPLEMENTATION OF CTPA Vanport Inc., Tulsa, exports Centrilift, Claremore, exports Solae LLC, Pryor, exports soy vacuum lifts to Colombia that oilfield supplies to Colombia proteins to Colombia that face face tariffs of 15 p ercent. that face tariffs of 10 p ercent. tariffs of 20 p ercent. Zeeco Inc., Broken Arrow, exports air systems to Colombia that face tariffs of 15 p ercent. Wood Group, Oklahoma City, exports pump parts to Colombia that face tariffs of 5-10 p ercent. Southwest Tractor & Parts, Atoka, Array Products, Muskogee, exports exports bulldozers to Colombia that oilfield supplies to Colombia that face tariffs of 10 p ercent. face tariffs of 10 p ercent.

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

10 OKLAHOMA EXPORTS THAT CTPA WILL MAKE DUTY FREE IMMEDIATELY