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This employment impact report was prepared pursuant to section 2102(c)(5) of the Trade Act of 2002. Section 2102(c)(5) requires the President to review and report to the Congress on the impact of future trade agreements on U.S. employment and labor markets. This report describes the relevant provisions of the United States–Colombia Trade Promotion Agreement (CTPA), including a summary of its labor provisions, and assesses the potential employment effects of the CTPA.

The major finding of this report is that the CTPA is expected to have a negligible effect on aggregate employment in the United States. This finding is attributable to: (i) the small size of Colombia’s economy relative to the United States; (ii) the small volume of bilateral trade between the two countries; (iii) the fact that nearly 93 percent of all U.S. imports from Colombia in 2010 entered the United States duty-free; (iv) provisions in the CTPA for the gradual removal of U.S. tariffs on import-sensitive goods from Colombia over an extended period; (v) safeguards contained in the CTPA to attenuate the effects of certain increases in imports; and (vi) quantitative estimates that the CTPA will increase U.S. output and consumption by less than one-twentieth of one percent of current U.S. gross domestic product. Any employment effects would follow from these small changes in output and consumption.


Suggested Citation
U.S. Department of Labor. (2011). Report on the U.S. employment Impact of the United States - Colombia Trade Promotion Agreement. Washington, D.C.: Author.