Why Caterpillar Digs a Colombian Trade Deal

摘要

Economists estimate that the free-trade pact with Colombia, which received White House endorsement on Apr. 7 and awaits approval from Congress, could boost U.S. gross domestic product by $2.5 billion a year. Caterpillar would be a bigger beneficiary than most. Colombia's booming mining business has made the nation one of the top 10 export markets for the Peoria (Ill.) manufacturer of construction equipment. Removing the country's tariffs on such goods, which range from 5 percent to 15 percent, would cut $100,000 from the $2 million price tag for Caterpillar's D11 bulldozer. Buyers of one of the company's behemoth trucks, which go for $2 million or more, would save $300,000 without the tariffs.