Oct. 13 (Bloomberg) -- Enka de Colombia SA, a Medellin- based synthetic fibers producer, headed to a three-month high after U.S. lawmakers approved a free-trade accord with the South American nation.
Enka gained 4.1 percent to 12.70 pesos at 10:49 a.m. Bogota time. That’s the highest price on a closing basis since July 7. It was the biggest gain on the benchmark IGBC index, which fell 0.1 percent.
U.S. lawmakers approved free-trade accords with Colombia, Panama and South Korea first introduced four years ago under President George W. Bush. President Barack Obama revised the pacts and spent two years seeking to broaden Democratic support for them.
“Enka will be able to export its yarns for fishing nets to the U.S. without tariffs,” said Jairo Agudelo, analyst at Celfin Capital. “It’s their most important product and the 12 percent U.S. tariff on it will fall to zero once the trade agreement enters into effect.”
The accords overcame a stalemate with Republicans on aid for workers who lose their jobs to foreign competition. The bills, which supporters say would bring the biggest opening of markets for American companies in almost two decades, now go to Obama for his signature.
The Colombia accord faced the most opposition of the three pacts, passing on votes of 66-33 in the Senate and 262-167 in the House as democratic leaders, including Senator Sherrod Brown of Ohio, said the South American nation has done too little to protect union leaders after 51 were killed last year.
“Colombia remains the most dangerous place in the world to be a trade unionist,” Brown said on the Senate floor yesterday.
--With assistance from Eric Martin in Washington. Editors: Richard Richtmyer, Glenn J. Kalinoski
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