Statement By Francine Lamoriello, EVP of Global Strategies Personal Care Products Council Cosmetic and Personal Care Product Industry Supports Passage of Columbia, Korea, and Panama Free Trade Agreements
“The Personal Care Products Council applauds President Obama for sending the Colombia, Korea, and Panama free trade agreements to Congress, and urges Congress to pass them.
As a truly global industry, cosmetic and personal care product companies are dependent on open markets and transparent, consistent regulatory environments around the world. International trade is a critical component to the success of our industry and significantly contributes to our ability to expand manufacturing and employment and support other industries such as advertising, packaging, and transportation. With a $5 billion trade surplus in 2008, the personal care products industry significantly contributes to a positive U.S. balance of trade and promotes continual technological innovation.
Our member companies strive to uphold and surpass the most stringent regulatory and product standards worldwide and are committed to providing consumers with safe, innovative and high quality cosmetic and personal care products, the ingredients for which are globally sourced.”
BACKGROUND:
“U.S.-Korea Free Trade Agreement. South Korea is one of the top destinations for U.S. personal care products. The United States exported more than $230 million worth of personal care products to South Korea in 2010. Under the U.S.-Korea FTA (KORUS), 23.5 percent of exported products will receive duty free access immediately, with all products achieving it at the end of 10 years. U.S. companies also will benefit from greater transparency in standards and technical regulations and more frequent dialogue on technical issues between the governments.
“Colombia Free Trade Agreement. Colombia is a fast growing economy that has great potential for U.S. personal care companies. In 2010, U.S. companies exported $73.1 million worth of personal care products to Colombia. Under the U.S.-Colombia Free Trade Agreement, tariffs will decrease to 0 by the end of the 10th year, with more than 43 percent of current exports receiving duty free access immediately.
“Panama Free Trade Agreement. Panama received $54 million worth of U.S. personal care products in 2010. More than 71 percent of those products will receive duty free access immediately. By year 10 of the agreement, all products will receive that same advantage.