Prepared by the International Trade Administration
Manufacturing and Services
Office of Trade Policy Analysis
U.S.-Colombia Free Trade Agreement
Market Access Results
Autos and Auto Parts
Trade and Tariffs
The automotive sector covers motor vehicles and parts.
Automotive products accounted for 3.5 percent of U.S. exports to Colombia in 2006, totaling
approximately $172 million. The top U.S. exports to Colombia in this sector were passenger
and transport vehicles, chassis, and engines. Colombian tariffs range between 5 and 35
percent with an average of 15.8 percent in 2006.
Colombian exports to the United States in this sector totaled $12.2 million in 2006 or less than 1
percent of total exports to the United States. Top Colombian exports were miscellaneous auto
parts, brake lining and pads, and safety glass. U.S. tariffs applied to the automotive sector
range from 0 to 25 percent, with an average of 2.4 percent. All Colombian exports in this sector
enter the United States duty-free under the Andean Trade Preference Act (ATPA) and Andean
Trade Promotion and Drug Eradication Act (ATPDEA) tariff preferences.
Tariffs will be phased out according to five tariff elimination categories: immediate elimination,
equal cuts over five years, unequal cuts over five years, equal cuts over seven years, and equal
cuts over ten years. Tariff elimination under the unequal five-year staging category will proceed
with a 10 percent cut in the tariff in years one and two, a 30 percent cut in year three, a 20
percent cut in year four, and the remaining 30 percent tariff cut will take place in year five.
For automotive products, 53 percent of U.S. industrial exports will receive duty-free treatment
immediately upon implementation of the agreement. Tariffs on another 23 percent of exports
will be eliminated over five years. Duties on the remaining 24 percent of U.S. exports will be
eliminated over ten years.
Tariffs on priority automotive pr