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Fact Sheet: Creating New Opportunities for Consumers and Businesses Around
the World
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For Immediate Release Office of the Press Secretary October 16, 2008

Fact Sheet: Creating New Opportunities for Consumers and Businesses Around
the World President Bush Signs Legislation To Extend The Andean Trade
Preference Act And Urges Congress To Level The Playing Field For American
Workers By Approving The U.S.-Colombia Free Trade Agreement

ÿÿWhite House News

ÿÿÿÿÿ President Bush Signs H.R. 7222, the Andean Trade Preference Act
Extension ÿÿÿÿÿ In Focus: International Trade

Today, President Bush signed legislation to extend the Andean Trade
Preference Act (ATPA). ATPA ensures that products from several of our
trading partners in South America continue to enter the United States
duty-free. With this extension, our Nation is demonstrating our commitment
to continued economic growth in our hemisphere and a global system based on
free and open trade. Congress should build on this commitment and ensure
duty-free treatment for products made by American workers, farmers, and
ranchers by approving the U.S.-Colombia free trade agreement.
  þ Congress was right to extend the ATPA, ensuring duty-free access to the
    U.S. market for trading partners in South America, including our
    friends in Colombia and Peru. The ATPA also allows us to suspend trade
    preferences with countries that do not live up their promises.
    Unfortunately, Bolivia has failed to cooperate with the United States
    on important efforts to fight drug trafficking, so President Bush has
    proposed to suspend Bolivia's trade preferences until it fulfills its
    obligations.

The U.S.-Colombia Free Trade Agreement Will Level The Playing Field For
American Businesses And Workers

Now that Members of Congress have ensured duty-free access for South
American products entering U.S. markets, they also need to ensure duty-free
access for American products entering South American markets. More than 90
percent of imports from Colombia enter our country duty-free, but the
approximately 10,000 American businesses that export to Colombia _
including approximately 8,000 small and mid-sized businesses _ face tariffs
as high as 35 percent, with rates even higher for some agricultural
products. When the Colombia FTA takes effect, Colombia will immediately
eliminate tariffs on more than 80 percent of U.S. exports of industrial and
consumer goods and will, over time, eliminate tariffs on 100 percent of
U.S. exports.
  þ The U.S.-Colombia free trade agreement will open Colombia's growing
    economy to American goods and services. The agreement will provide
    particular benefits to U.S. farmers and ranchers by immediately
    eliminating Colombia's duties on U.S. exports of high-quality beef,
    cotton, wheat, soybeans, certain fruits and vegetables, and many
    processed foods. For example:
      þ Colombian flowers _ a major Colombian export _ may enter the
        American market without paying any tariffs at all, but U.S.-made
        fertilizer, used to help the flowers grow, is assessed a 15-percent
        tariff when exported to Colombia.
      þ Colombian carrots imported to the United States market face no
        tariff, but a tractor made with U.S. parts by U.S. union labor is
        subject to a 10-percent tariff when sold to the Colombian carrot
        farmers.
      þ Colombian bananas face no tariffs in the United States, but a
        U.S.-grown apple is subject to a 15-percent tariff when sold in
        Colombia.
  þ Tariffs imposed on American products exported to Colombia have now
    reached an estimated $1.3 billion since the agreement was signed in
    November 2006. Congress' failure to approve the agreement is hurting
    American businesses that want to sell their products in
    Colombia.Leveling the playing field by approving the trade agreement
    will make American products more competitive in Colombia and support
    higher-paying jobs here in the United States.
  þ Exports have accounted for more than half of America's economic growth
    this year. Last year, the United States exported more than $1.6
    trillion of goods and services. Exports now make up a greater share of
    our gross domestic product than at any time in our history. One of the
    best ways to restore confidence in the global economy is by keeping
    markets open to trade and investment.

The U.S.-Colombia Free Trade Agreement Advances Our National Security

It is in America's interest to stand by Colombia and the best way to do so
is for Congress to approve the Colombia free trade agreement. Over the past
six years, President Uribe has transformed his country from the brink of a
failing state to a stable democracy with a growing economy. He has
partnered with America in the fight against drugs and terror and responded
to virtually every request from Congress, including revising the agreement
to include some of the most rigorous labor and environmental protections in
history.
  þ Approval of the agreement will bolster one of our closest friends in
    the hemisphere and rebut those in Latin America who say the United
    States cannot be trusted to keep its word. This trade agreement will
    reinforce democracy by helping in the fight against corruption and
    encouraging transparency, accountability, and the rule of law. The
    agreement with Colombia will bring increased economic opportunity to
    the people of Colombia through sustained economic growth, new
    employment opportunities, and increased investment.

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