WASHINGTON — President Bush told Congress he planned to enter into a free trade agreement with Colombia that would lower barriers to commerce between the two countries.
The administration needs to give Capitol Hill legislators at least 90 days notice before signing such an agreement and then submitting it for their approval.
“The United States-Colombia Trade Promotion Agreement will generate export opportunities for U.S. farmers, ranchers and companies, help create jobs in the United States and help American consumers save money while offering them more choice,” said Bush in a letter to Congressional leaders.
Negotiations for the trade agreement wrapped up in February.
Should Congress OK the pact, apparel and textile products would be duty free as soon as it is implemented. The deal has a yarn-forward rule of origin, so goods need to be made of yarn and fabric produced in either Colombia or the U.S. to qualify for duty-free treatment. There is a single-transformation provision for bras, however, meaning fabrics from other countries can be used as long as they are cut and sewn in Colombia or the U.S.
A spokesman for the American Manufacturing Trade Action Coalition said the domestic textile industry opposes “loopholes” that allow goods made of third-party fabrics to qualify for duty- free access to the U.S. market.
The deal would basically lock in duty-free treatment afforded Colombia under the Andean Trade Preference Act, which is intended to spur alternatives to drug production and trafficking. That preference program, however, is set to expire at the end of this year.
Julia Hughes, vice president of international trade at the U.S. Association of Importers of Textiles & Apparel, said Congress would not consider the agreement until next year, opening up the possibility that importers will have to at least temporarily pay duties on shipments to the U.S.
For the 12 months ended June 30, Colombia’s apparel and textile imports to the U.S. fell 12.4 percent to 145.9 million square meter equivalents, valued at $567.3 million.