Proposed U.S.-Colombia Free Trade Agreement: Background and Issues

The proposed U.S.-Colombia Trade Promotion Agreement, also called the U.S.-Colombia Free Trade Agreement CFTA, was signed by the United States and Colombia on November 22, 2006. The agreement must be approved by the U.S. Congress before it can enter into force. The Colombian Congress approved the agreement in June 2007 and again in October 2007, after it was modified to meet labor and environmental concerns. Upon congressional approval, it would immediately eliminate duties on 80 of U.S. exports of consumer and industrial products to Colombia. Most remaining tariffs would be eliminated within 10 years of implementation. The agreement also contains other provisions in services, investment, intellectual property rights protection, labor, and the environment. About 90 of U.S. imports from Colombia enter the United States duty-free under trade preference programs or through normal trade relations, while U.S. exports to Colombia face duties of up to 20, and even higher for certain products. The 112th Congress may consider implementing legislation for the proposed CFTA. Negotiations for the agreement were conducted under the trade promotion authority TPA. Implementing legislation for the CFTA H.R. 5724S. 2830 was introduced in the 110th Congress on April 8, 2008, under TPA. The House leadership, however, took the position that the President had submitted the implementing legislation without adequately fulfilling the TPA requirement for consultation with Congress. On April 10, 2008, the House voted 224-195 to make the provisions establishing expedited procedures inapplicable to the CFTA implementing legislation H.Res. 1092.