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According to reports, after the entry into force of the EU-Colombia Free Trade Agreement (FTA), Colombia’s textile industry is expected to be boosted.
Earlier this month, the European Parliament opened a green light for free trade agreements with Colombia, Peru and six Central American countries. These trade agreements need to be approved by all 27 member states in order to be fully effective.
The free trade agreement will lead both parties to lower import tariffs and cancel technical barriers to trade.
According to the Colombian government, the EU-Colombia free trade agreement may increase Colombia’s GDP by 1.3%, and Colombia’s textile and clothing industry is expected to be the biggest beneficiary.
Once the free trade agreement takes effect, Colombia's textile and apparel exports to the EU will be reduced or reduced to zero, and the current tariff is as high as 10%.
With regard to rules of origin (ROOs), free trade agreements will allow Colombia to make better use of tariff preferences. Fibers imported from third countries are allowed to be used for the production of textiles, but the yarn must be produced in Colombia or the European Union.
Similarly, in the 'knit-to-shape' category, such as stockings, belts and underwear, Colombia can use nylon and elastomers imported from third countries to produce finished products and export to Europe in accordance with the provisions of the free trade agreement.