US-Colombia FTA to Boost American Textile Exports
The United States-Colombia Free Trade Agreement (FTA), which will come into effect from May 15, 2012, will result in tremendous growth of US textile exports to Colombia.
The FTA envisages elimination of tariffs on items made from regional yarn and hence, it will benefit textile and apparel makers in both countries.
Several US firms export yarns and textiles to Colombia, which are then converted into apparels and exported back to the US. Hence the FTA will also lead to an increase in Colombian apparel exports to the US.
Last year, the US exported textiles and garments worth US$ 165 million to Colombia, which mainly consisted of yarns and fabrics. Colombian textile and apparel exports to the US were worth US$ 263.5 million during the same period, of which the clothing items constituted a major part.
The Obama administration estimates that the new FTA with Colombia will increase US exports by US$ 1.1 billion per annum, with a significant contribution coming from the textile and apparel sector.