Ecommerce trade barriers removed in US-Colombia FTA: Opportunities for app developers, and other services

Posted by Harry Tapias on April 3, 2013

AA017977Ecommerce trade barriers removed in US-Colombia FTA: Opportunities for American app developers and other services

Under the 2012 US Colombia Free Trade Agreement (CFTA), Colombia and the US agreed to eliminate tariff-based and non-tariff barriers to information technology products. Now electronically transmitted services such as financial services (think retirement portfolios), and digital products such as iphone apps (think Angry Birds) are not subject to export duties. Each nation, however, can tax the product buy levitra internally as it would do for domestic products.

Sector Size

According to a May 2012 US Department of Commerce report, Colombia’s IT market was estimated at USD $2.78 Billion, only accounting for 1% of the country’s GDP. Despite the small size, the report indicates the sector has been growing well above GDP growth rates in recent years.

No Less Favorable Treatment

The CFTA prohibits the assessment of tariff-based and levitra vs viagra non-tariff barriers on the basis that:

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1) Its made outside the US: the digital products receiving less favorable treatment are created, produced, stored, sold, etc. outside either territory, or

2) The http://wmaa.com/store/levitra/ author is a non-party: the kamagra jelly author, performer, producer, developer, etc., is a non-American or non-Colombian.

This law suggests that if you are an American smart-phone app designer and outsource partial or total development to India or Argentina, your technology can still enter Colombia with duty-free treatment. As a result, app developers have flexibility on whom to hire and where to hire from. Please note the extreme importance of protecting your intellectual property before delivering your technology in Colombia. You can

learn more from our blog “US intellectual property protection under the Colombian Free Trade Agreement.”

Contact LOIGICA today to speak to an international law advisor on how to expand your technology in Colombia and other parts of South America.

Topics: American app developers, Business Law, Ecommerce, information technology, removed in US-Colombia FTA, trade barriers