Colombian textile sector is expected to get a boost once the EU-Colombia free trade agreement (FTA) comes into force.
Earlier this month, the European Parliament gave green signal for FTAs with Colombia, Peru and six Central American countries. The trade agreements need to be ratified by all 27 EU member states before they can fully come into force.
The FTAs will result in reduction of import tariffs and removal of technical barriers to trade on both sides.
The EU-Colombia FTA is likely to boost Colombia’s GDP by 1.3 percent and the Colombian textile and apparel sector, is expected to benefit the most, according to Colombian Government.
Once the FTA is set in motion, the duty on Colombian textile and garment exports to the EU would be either cut or reduced to zero from the current up to 10 percent duty.
In terms of Rules of Origin (RoO), the FTA would allow Colombia to take advantage of tariff preferences in a better way. The import of fibres from third countries for making textiles would be allowed, but yarn must be made in either Colombia or the EU.
Similarly, for ‘knit to shape’ items like stockings, girdles and innerwear, Colombia can use both nylon and elastomer imported from third countries for making products meant for export to the EU under FTA provisions.