611.2131/78a

Memorandum Handed to the Colombian Minister (Lozano) by the Assistant Secretary of State (Caffery), August 22, 1933

In handing to the Minister of Colombia a proposal designed to serve as the basis of a reciprocity agreement between the United States and [Page 223] Colombia, it is desired to call attention to certain trade figures which throw light upon the two schedules9 included in the text.

In 1931, according to figures compiled by the United States, exports to Colombia amounted to $16,052,000, of which it is estimated that $5,083,000 or 31.7 per cent., consisted of products of the varieties on which, under Schedule 1 of the Agreement, Colombia is asked to reduce its tariff rates. The corresponding figures of the Colombian customs authorities are 17,196,000 pesos, of which 5,722,000, or 33.3 per cent., represent the commodities upon which reductions are asked.

For 1932, figures of the United States export trade, but not of the Colombian import trade, are available. They indicate that, in 1932, exports from the United States to Colombia amounted to $10,670,000, of which $1,802,000, or 16.9 per cent., represented the products on behalf of which reduced tariffs are asked.

The foregoing figures are in sharp contrast to the corresponding figures illustrating Schedule 2, which contains the commodities which the United States agrees to continue on the free list, so long as the Agreement remains in force.

In 1931 the United States imported from Colombia products to the value of $75,481,000, of which $74,843,000, or 99.2 percent, represent the commodities which are included in Schedule 2. In 1932, imports into the United States from Colombia amounted to $60,845,000, of which $57,227,000, or 94.1 per cent., were the products which the United States proposes to keep on the free list when imported from Colombia.

It will be interesting, in this connection, to recall the fact that, in 1931, the total imports of Colombia, in United States dollars, amounted to $39,640,000, of which $16,505,000 or 41.9 per cent., came from the United States. The percentage remained approximately the same for 1932, though the value of the products in dollars declined considerably. Of the total exports of Colombia, in 1931, which were valued at $94,647,000, the exports to the United States amounted to 83.1 per cent., or $78,639,000. The corresponding figures for 1932 show total exports of $67,067,000, of which $51,497,000, or 76.7 percent, were to the United States.

[Enclosure]9a

American Draft of Reciprocal Trade Agreement

The President of the United States of America and the President of the Republic of Colombia, desiring to promote trade between the [Page 224] United States of America and the Republic of Colombia, have arrived at the following agreement:

Article I

Articles the growth, produce or manufacture of the United States of America, described in Schedule 1 annexed hereto and made a part of this agreement, shall, when imported into the Republic of Colombia, be exempt from customs duties and import charges of any kind in excess of those set forth in the said schedule. Octroi and other internal charges affecting such articles, and not equally imposed upon like articles the growth, produce or manufacture of Colombia, shall not be increased above their present rates.

Article II

Articles the growth, produce or manufacture of the Republic of Colombia, described in Schedule 2 annexed hereto and made a part of this agreement, shall, when imported into the United States of America, be exempt from all customs duties and import charges, except such special duties as are required by law to be assessed on importations which are not properly marked to indicate their origin, or which have been sold at less than the foreign market value (or, in the absence of such value, than the cost of production).

Article III

It is agreed that the United States of America and the Republic of Colombia will grant each other unconditional and unrestricted most-favored-nation treatment in all matters concerning customs duties and subsidiary duties of every kind and in the method of levying duties, and, further, in all matters concerning the rules, formalities and charges imposed in connection with the clearing of goods through the customs.

Accordingly, natural or manufactured products having their origin in either of the countries shall in no case be subject, in regard to the matters referred to above, to any duties, taxes or charges other or higher, or to any rules and formalities other or more burdensome, than those to which the like products having their origin in any third country are or may hereafter be subject.

Similarly, natural or manufactured products exported from the territories of either country and consigned to the territories of the other shall in no case be subject, in regard to the above-mentioned matters, to any duties, taxes or charges other or higher, or to any rules and formalities other or more burdensome, than those to which the like products when consigned to the territories of any other country are or may hereafter be subject.

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All the advantages, favors, privileges and immunities which have been or may hereafter be granted by either country in regard to the above-mentioned matters, to natural or manufactured products originating in any other country or consigned to the territories of any other country shall be accorded immediately and without compensation to the like products originating from the other or to products consigned to the territories thereof.

Nevertheless, the advantages now accorded or which may hereafter be accorded to other adjacent countries in order to facilitate frontier traffic, and advantages resulting from a customs union already concluded or hereafter to be concluded by either country shall be excepted from the operation of this article; and this article shall not apply in respect of police or sanitary regulations or to the commerce of the United States of America with the Republic of Cuba, the Panama Canal Zone, the Philippine Islands, or any territory or possession of the United States, or in respect of the commerce of the territories and possessions of the United States with one another.

Article IV

This agreement shall become effective on the day on which the President of the Republic of Colombia shall inform the President of the United States of America that the reductions of duties provided for, and any changes in the laws and regulations of the Republic of Colombia that may be necessary to give effect to the provisions of the agreement, are in force in the Republic of Colombia. It shall remain in effect until either party shall, on thirty days’ written notice to the other party, have terminated the same.

Done at Washington in duplicate in the English and Spanish languages, both of which shall be equally authentic, this . . . . . . day of . . . . . . . . . ., 1933.

In witness whereof, the duly authorized representatives of the President of the United States of America and the President of the Republic of Colombia, have affixed their signatures.

For the President of the United States of America:
For the President of the Republic of Colombia:
  1. Schedules not printed.
  2. Filed separately under 611.2131/69a.