WASHINGTON—“The Personal Care Products Council applauds President Obama for sending the Colombia (CFTA), Korea (KORUS) and Panama (PFTA) free trade agreements to Congress, and urges Congress to pass them," said Francine Lamoriello, EVP of global strategies, Personal Care Products Council Cosmetic. “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."
South Korea is one of the top destinations for U.S. personal care products, with more than $230 million worth of personal care products exported to South Korea in 2010. The KORUS will enable 23.5 percent of exported products to 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.
In 2010, U.S. companies exported $73.1 million worth of personal care products to Colombia. Under CFTA, 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 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.