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Textiles and Apparel in the U.S.-Colombia Trade Promotion Agreement

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YarnColombia is an important market for U.S. textiles and apparel. The U.S.-Colombia Trade Promotion Agreement opens new market access opportunities for U.S. textiles and apparel manufacturers and strengthens customs enforcement mechanisms to verify claims of origin and deny illegal customs circumvention. Qualifying U.S. textile and apparel exports to Colombia would receive duty-free treatment immediately upon implementation of the Agreement.

KEY ELEMENTS

Tariffs: Colombian textile and apparel tariffs currently average 18.3 percent. Qualifying U.S. textile and apparel exports to Colombia would receive duty-free treatment immediately upon implementation of the Agreement.

Textile Specific Safeguard: A special textile safeguard mechanism will provide for a temporary return to MFN tariffs if a surge in imports under the Agreement is shown to be causing or threatening to cause serious damage to domestic industry.

Rules of Origin: The Agreement contains a “yarn-forward” rule of origin, meaning that qualifying textile and apparel products must be produced using U.S. or Colombian yarns and fabrics. This rule of origin ensures that the benefits of the Agreement accrue to U.S. and Colombian producers.

Elastomeric Yarn Requirement: Consistent with other free trade agreements, elastomeric yarns must be sourced from the region for textiles and apparel products to qualify for duty-free entry.

Streamlined Processes to Address Commercial Availability: A special commercial availability (“short supply”) determination process will help yarns or fabrics that are deemed not commercially available in the region to be used in the production of apparel.

Customs Enforcement: Specific textile customs cooperation language will help prevent transshipment and circumvention of the rules of origin of the Agreement.