Colombian Coffee to the United States: The Benefits of Free Trade Agreement

market place colombia free trade commerce

Did you know that the United States has a Free Trade Agreement with Colombia? This means that there are many benefits to importing Colombian products into the United States. In this article, we will discuss some of the benefits of the Free Trade Agreement between Colombia and the United States. We will specifically focus on coffee, as Colombia is one of the world's leading exporters of coffee.

The Free Trade Agreement & Colombian Coffee in America:

One of the most important factors in spreading economic growth is trade agreements, which can help companies from different countries expand their business and make it easier for consumers across borders. The Free Trade Agreement between Colombia and America has led not only to lower prices but also increased access to high-quality coffee as well.

Thanks to the Free Trade Agreement, Colombian companies can export their coffee to the United States without paying duty taxes. This gives American consumers access to high-quality Colombian coffee at a great price.

In addition, many American companies purchase Colombian coffee and distribute it under their brand name. This is known as "white-labeling." White-labeling allows American companies to sell Colombian coffee without having to invest in the production process themselves.

As you can see, there are many benefits to the Free Trade Agreement between Colombia and the United States, let's analyze the benefits focusing on coffee.

Benefits of the Free Trade Agreement on coffee:

First of all, coffee is one of the most consumed beverages in the United States. It is estimated that over 60% of American adults drink coffee every day. Thanks to the Free Trade Agreement between Colombia and the United States, Colombian companies can export their high-quality coffee beans to the United States without paying duty taxes.

When the Free Trade Agreement between Colombia and United States came into effect, consumers in America had access to high-quality coffee at a great price. Colombian companies were able to expand their business by exporting more products than ever before while American retailers could sell through this new market without investing money themselves or managing production risks on both sides of the Atlantic Ocean - something that would have been difficult otherwise due solely because they weren't partaking. Those benefits have resulted from strong political negotiations backed up with solid economic logic which makes everyone satisfied.

This is evident by the fact that Colombia is now the third-largest coffee producer in the world, and exports over 12% of the global coffee production. The Free Trade Agreement has been a success for both Colombian and American companies, and it looks like this trend will continue in the years to come.

In other words, this Free Trade Agreement it´s a win-win situation for both countries as it diversifies our portfolio and strengthens ties in Latin America with one of the most important regions we operate throughout.

The United States has always been one of Colombia´s main trading partners, and this Free Trade Agreement will only make that stronger.

So let´s take a look at some of the benefits that come with this Free Trade Agreement:

  • Duty Tax Exemption: One of the most important benefits for Colombian companies exporting to the United States is the duty tax exemption. This means that, under this Free Trade Agreement, Colombian products exported to the United States will not be subject to any customs duties. This is a huge advantage for Colombian companies, as it lowers their costs and makes them more competitive in the US market.
  • Increased Access to the US Market: The other main benefit of this Free Trade Agreement is that it gives Colombian companies increased access to the US market. This means that they can sell their products in the United States without having to go through any bureaucratic red tape or restrictions. This is a huge advantage for Colombian companies, as it allows them to reach American consumers more easily and sell their products at a lower price.
  • White-Labeling: A final benefit of this Free Trade Agreement is that it allows American companies to sell Colombian coffee under their brand name. This is known as "white-labeling." White-labeling allows American companies to sell Colombian coffee without having to invest in the production process themselves. This is a great way for American companies to get involved in the Colombian coffee market without having to incur any costs or risks.

With this Free Trade Agreement, Colombian companies will be able to sell their products in the United States without any restrictions or tariffs. This gives them a huge competitive advantage over other countries exporting to the US market. -Strengthened Relationship between Colombia and the United States. Finally, this Free Trade Agreement will help to strengthen the relationship between Colombia and the United States.

As well, with proximity to the United States at less shipping costs, favorable currency exchange rates that make it easy for US companies, and trade agreements with other countries such as Colombia who have devalued their currencies too far relative to each other; there are many reasons why Colombian exports will be more attractive than similar commodities elsewhere. These partnerships help broaden our economy by expanding the volume of goods traded both ways while creating jobs in industries related directly or indirectly to these transactions.

This Free Trade Agreement is a clear demonstration of the strong ties that already exist between these two countries, and it will help to further deepen those ties in the future. So overall, there are many benefits to be gained from this Free Trade Agreement for both Colombia and the United States.

What do you think about the Free Trade Agreement between Colombia and the United States? Do you think it has been beneficial for both countries? Let us know in the comments! We hope that this article has helped to highlight some of those benefits and that it will encourage more Colombian companies to start exporting to the United States.