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Published: 2008

Total Pages: 31

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Implementing legislation for a U.S.-Colombia Free Trade Agreement (CFTA) (H.R. 5724/S. 2830) was introduced in the 110th Congress on April 8, 2008 under Title XXI (Bipartisan Trade Promotion Authority Act of 2002) of the Trade Act of 2002 (P.L. 107-210). The House leadership considered that the President had submitted the implementing legislation without sufficient coordination with the Congress, and on April 10 the House voted 224-195 to make certain provisions in section 151 of the Trade Act of 1974 (P.L. 93-618), the provisions establishing expedited procedures, inapplicable to the CFTA implementing legislation (H. Res 1092). The CFTA is highly controversial and it is currently unclear whether or how Congress will consider implementing legislation in the future. The agreement would immediately eliminate duties on 80% of U.S. exports of consumer and industrial products to Colombia. An additional 7% of U.S. exports would receive duty-free treatment within 5 years of implementation and all remaining tariffs would be eliminated within 10 years after implementation. The agreement also contains provisions for market access to U.S. firms in most services sectors, protection of U.S. foreign direct investment in Colombia, intellectual property rights protections for U.S. companies, and enforceable labor and environmental provisions. Economic studies on the impact of a U.S.-Colombia free trade agreement (FTA) have found that, upon full implementation of an agreement, the impact on the United States would be positive but very small. Numerous Members of Congress oppose the CFTA because of concerns about the violence against labor union activists in Colombia and because of the perceived negative effects of trade on the U.S. economy. The Bush Administration believes that Colombia has made significant advances to combat violence and instability and views the pending trade agreement as a national security issue in that it would strengthen a key democratic ally in South America.