Colombia to Sign US Trade Deal in December 2026
The agreement aims to suspend a 12.5% tariff after Colombia adopted a ban on imports made with forced labour.
Updated on Oct. 22, 2026 in International Trade
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Colombia expects to sign a trade deal with the United States in December 2026 to resolve a trade dispute over forced-labour standards. The move follows the issuance of Decree 1444, which banned imports made with forced labour, potentially ending the 12.5% duty currently applied to many goods.
Why it matters
The United States imposed the 12.5% tariff on July 24, 2026, due to Colombia lack of formal legislation prohibiting imports associated with forced labour. By enacting Decree 1444 on September 28, 2026, Colombia seeks to satisfy US concerns and restore favorable trade terms for its exporters.
The 12.5% tariff applies to goods including fresh flowers, apparel, and plastic items, while shielding primary exports like coffee, oil, and gold. A potential deal would cover 90% to 93% of Colombian exports that faced duties.
The players
Ambassador Araújo
The Colombian representative leading the Commerce Ministry team in trade negotiations with the United States.
US Trade Representative
The agency responsible for administering US trade policy and negotiating international agreements with foreign partners.
The details
Negotiators from the Colombian Commerce Ministry and Ambassador Araújo are currently reviewing the agreement text in Washington with the US Trade Representative. While a deal is expected in December 2026, the tariff relief only becomes active following a formal notice from the United States.
Timeline
July 24, 2026: The United States implemented a 12.5% duty on various Colombian imports.
September 28, 2026: Colombia issued Decree 1444 to prohibit imports produced with forced labour.
December 2026: The target month for Colombia and the United States to sign the trade agreement.
December 11, 2026: Colombia is scheduled to sign a separate trade agreement with El Salvador.
Market Dynamics
This agreement follows the enactment of Decree 1444, marking a strategic pivot to align national trade regulations with US forced-labour import prohibitions. It represents a broader effort to stabilize trade flows after the implementation of the 12.5% tariff in July 2026.
Exporters currently facing the 12.5% duty may see improved margins once the formal US notice confirms the tariff suspension. Investors should monitor for the final signing in December 2026, which remains the primary trigger for changing tariff obligations.
The takeaway
The pending trade deal illustrates how domestic policy changes regarding labour standards can directly influence international market access. Businesses dependent on cross-border trade should anticipate potential shifts in cost structures once official notices follow the signing of the agreement.
What happens next
Colombia and El Salvador are scheduled to sign a separate trade agreement on December 11, 2026.
Further reading
Learn more about the latest developments in International Trade.
Source note: This article includes information reported by The Rio Times.
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