The bilateral free trade agreement (FTA) between Colombia and Canada will enter into force on August 15, 2011, meaning that the Andean nation will not have to pay taxes on 98% of goods exported to the North American country.
According to the Colombian Foreign Ministry, the FTA will begin operating on that day, as notified by Canadian authorities.
The agreement will increase the competitiveness of the Colombian market in North America, newspaper Portafolio reported Monday.
As stipulated by the agreement, the majority of taxable industrial and agricultural goods exported by Colombia will arrive free of charge in Canada, excluding dairy and poultry.
In the same way, Colombia will open its markets to Canadian goods. Some will enter without being taxed, while others will have the taxes relieved over time.
In mid-April, Colombian Foreign Minister Angela Maria Holguin reported that the Canada-Colombia FTA was close to being operational, and in respect to the agreement, as well as a similar agreement with Turkey, stated that “Colombia is opening its economic prospects.”
As the day of the implementation of the FTA with Canada approaches, an agreement with Switzerland is due to go into force on July 1.
The FTA with Canada received quick approval from the Colombian Congress after it was signed in 2008 but sat dormant in the Canadian parliament until it was finally approved last June.