COLOMBIA Investment Environment and Business

Opportunities in Colombia

December 2012

About us

Proexport  is  Colombia’s  entity  in  charge  of  the  promotion of International Tourism, Foreign Direct

Investment, and non-traditional exports

EXPORTS INVESTMENT TOURISM

Proexport’s network: 28 offices around the world and 8 offices in Colombia

Opened a new business hotel offering 264 rooms, located in the heart of Bogota´s financial district.

Established one of its two world class R&D centers.

Opened a new global service center in Medellin

Acquired ESI de Colombia, a value added reseller of industrial electrical equipment an engineering services

Recent investment projects supported by Proexport

Opened a new Data Center oriented to Systems Integration, Outsourcing and Support Services.

Develop a Sugarcane ethanol project on aproximately 10,000 hectares.

Joint working plans with entrepreneurs interested in exports. 1

6

Commercial Information and offer adjustment trough different areas such as Zeiky, DEI and Cooperation. 2

Buyer missions 3

5

Technical Support and Commercial Missions

7

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Commercial Agendas

8

9

10

Showrooms

International Fairs

Exporter Missions

Web page for exporters and buyers

Exports Portfolio

Seminar for investors already installed 1

International Events and seminars.

6

SIFAI (System to facilitate and Attract Investment) 2

Tailor made information requests

3

5

7

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Coordination of site visits.

4

Investment Portfolio

Contacts with key entities in the public and private sector

Coordination of regional promotion

Ove

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Joint working plans – Exporter Plans 1

Joint promotion plans with operators 6

Institutional Projects 2

Special Projects 3

5

Workshops, destinations presentations and International Fairs 7

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Promotion Activities

Business meetings 4

Familirization Trips / media 8

Tourism Portal 9

Added Value Institutional Presence 10

Tourism Portfolio

The facts behind the headlines

General facts

In terms of population, Colombia is twice as populous as Australia and bigger than all

Central America

In Colombia 55% of the population is less than 30 years old. There are seven metropolitan

areas with over one million people

Colombia is the world´s second most biodiverse country and is among the 12

megadiverse countries of the planet

Colombia is the only country in South America with access to both, the Atlantic and the Pacific

ocean Colombia has preferential access to more than 1.5 billion consumers, due to international trade agreements.

A competitive location with easy access to markets around the globe

United States

Mexico

Brazil Peru

Ecuador Over 700 weekly direct international flights.

More than 4.900 weekly domestic flights.

Less than 6 hours to the main capital cities in Latin America.

More than 20 different airlines operating in Colombia.

New York 5H35M

Miami 3H00M

Caracas 1H20M

Lima 3H00M

Sao Paulo 5H45M

Mexico City 4H45M

Santiago Chile 5H00M

Buenos Aires 6H15M

Los Angeles 8H20M

Toronto 6H05M

Quito 1H30M

Chile Argentina

Canada

Madrid Paris

Frankfurt

Barcelona

Source: EIU - Economist Intelligence Unit. 2012 * Forecast.

113,8

47,5 46,1 40,9 38,2 34,4 30,4 29,1

22,5 17,3

11,3 10,7 10,6 9,5 8,4 7,9 7,8 5,2 5,0 4,4

Population 2011* Million

The second largest Spanish speaking country in the world and the 23rd most populated

466 443 423

387 378 367 348 301 298 278 272

246 233 205 184

133

GDP at PPP - 2011 US$ Billion

PPP - Purchasing Power Parity. Source: EIU - Economist Intelligence Unit. 2012.

Colombia is the 28th largest economy in the world and one of the largest non-OECD economies

Colombia’s  GDP  per  capita  is  approaching  US$  10,000

5,826

6,817

8,838

9,920

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

GDP per capita adjusted to prices at purchasing power parity (PPP) Source: EIU - Economist Intelligence Unit. 2012.

GDP per Capita at PPP 2000 – 2011 US$

Since 2005 Colombia is part of the group of upper-middle-income countries

0

1000

2000

3000

4000

5000

6000

7000

8000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2011e

US$

Upper Middle Income

Lower Middle Income

Low Income

Source: Ministerio de Hacienda y Crédito Público; EIU. * Classification based on a World Bank methodology

Per capita National Income * Current US$

Source: DANE- Colombia Central Bank - EIU: Economist Intelligence Unit Forecast. 2012.

2.6 3.9

5.3 4.7

6.7 6.9

3.5

1.7

4

5.9 7.0 6.5

5.5 4.9

4.5 5.7

7.7

2.0 3.2 3.7

15.5

14.0 13.6

11.8 12.0 11.2 11.3

12.0 11.8 10.8

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

GDP

Inflation

Unemployment rate

Macroeconomic stability and strong economic performance

GDP, Inflation and Unemployment rate 2002 – 2011 Annual Average %

0

100

200

300

400

500

600

700

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e 2012p 2013p 2014p

CHILE

COLOMBIA

PERU

VENEZUELA

Source: EIU – May 9 2012 P: Projected E: Estimated

GDP at PPP, 2000 – 2014 US$ Billion

Colombia is one of the leading growth economies in the region

Mobile Suscribers Million

Source: CRC - Communication Regulation Commission. MinTIC.

Colombia has a rapidly growing consumer market: More than 47 million mobile telephone lines by 2012

2,26 3,27 4,60 6,19 10,40

21,85

29,76 33,94

41,36 42,03 44,48 46,20 47,17

5,3% 7,6% 10,5% 13,9% 23,0%

47,5%

68,6% 77,3%

85,2% 91,0%

97,7% 100,3% 101,3%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 IQ

Mobile Users Penetration

Claro 62,38% Tigo,

12,43%

Movistar,

24,66%

Uff, 0,54%

Mobile Suscribers by Operator 2012 Q1. %

Include mobile networks

Source: Communication Regulation Commission.

Internet access has increase threefold over the past four years

218.405 501.238

1.072.881

2.150.718 2.179.951

3.181.431

4.384.181

6.140.271 6.465.779

2004 2005 2006 2007 2008 2009 2010 2011 2012 IQ

Internet connections

The top three risk-rating agencies awarded the investment grade to Colombia in 2011

Rating Date Rating Agency

Long Term– Foreign Currency

Short Term– Foreign Currency

Long Term– Local Currency

Short Term – Local Currency

Outlook

Positive

BBB –

A – 3

BBB +

A - 2

16 – Mar - 2011

16 – Mar - 2011

5 – Mar - 2007

5 – Mar - 2007

Long Term– Foreign Currency

Short Term– Foreign Currency

Long Term – Local Currency

Stable

BBB –

F – 3

BBB

22 – Jun - 2011

22 – Jun - 2011

22 – Jun - 2011

Long Term– Foreign Currency Stable

Baa3

7– Feb - 2012

August 2012 S&P upgrades

Colombia´s sovereign debt

outlook to positive

“Effective implementation of

recent fiscal reforms could improve its debt and interest burdens”–

S&P

Term

In 2011, the three top risk-rating agencies lifted Colombia´s sovereign debt rating to investment grade, coinciding with the excellent economic and financial period that the country was facing: A reduce in its vulnerability to external shocks Its historic fulfillment of obligations

Source: S&P Ratings; Dinero Magazine.

An increase in its macroeconomic confidence A true improvement in security policies

Higher Risk

The risk perception of Colombia continues to improve and is one of the lowest in the region

125,50 156,42 162,20 175,25 180,26 1.107,92 CDS* Index

Current risk low perception is a recognition of international markets to the positive behavior of the Colombian economy in recent years.

*Credit Default Swaps Index. Measures the difference between the interest rate paid over a Colombian bond in dollars abroad against the interest rate paid for a US bond. CDSA to July 18, 2012. The smaller the difference the lowest the risk in the country. Source: La Republica. Bloomberg.

50

100

150

200

250

300

Colombia Brazil Chile Peru Mexico

Chile

Argentina

México Colombia

Perú Brasil

Higher Risk

Wheras in Europe risk perception has increase for the last year due to the crisis, in Colombia the trend is completeley opposite

169,3

75,2

504,7

803,1

540,2

565,0

CDS Index*

0

200

400

600

800

1.000

1.200

1.400

1.600 COLOMBIA PORTUGAL ITALY IRELAND SPAIN FRANCE GERMANY NORWAY

124,0

31,6

*Credit Default Swaps Index. Measures the difference between the interest rate paid over a Colombian bond in dollars abroad against the interest rate paid for a US bond. CDSA to July 18, 2012. The smaller the difference the lowest the risk in the country. Source: La Republica. Bloomberg.

Portugal

España

Irlanda

Italia

Francia

Colombia

Alemania

Noruega

Source: UNCTAD 2012 Report

“Colombia aligned with attraction and potential expectations”

FDI A

ttrac

tion

Inde

x

FDI Potential Index

High

High Low

Expectations Alignment

Below Expectations

Above Expectations

All

Nicaragua Honduras Costa Rica

Belice

Panama Uruguay Colombia

Brazil Chile Peru

Dominican Republic

Haiti Ecuador Paraguay Salvador Venezuela

Argentina

Mexico

Guatemala

Bolivia T. & Tobago

Nicaragua Honduras Costa Rica

Belice

Panama Uruguay

Dominican Republic

Haiti

Colombia

Chile Peru Brazil

Ecuador Paraguay Salvador Venezuela

Argentina

Mexico

Guatemala

Bolivia T. & Tobago

Source: Doing Business 2013 World Bank Report *Positive numbers indicate improvements in business environment

Colombia is the third business friendly country in the region

Doing Business Ranking* 2008-2013 Change in the number of positions

Country World

Ranking 2012

World Ranking

2013

Chile 39 37 Peru 41 43 Colombia 42 45 Mexico 53 48 Panama 61 61 Costa Rica 113 110 Argentina 121 124 Brazil 126 130 Ecuador 130 139 Venezuela 177 180

30

16

8

7

3

0

-2

-8

-13

-21

Colombia

Panama

Costa Rica

Mexico

Peru

Venezuela

Ecuador

Brazil

Chile

Argentina

Source: Doing Business Report – World Bank. 2013.

6 Colombia 13 Peru 32 Chile 49 México 82 Brazil 82 Panama 117 Argentina 181 Venezuela

Colombia is the leader in terms of Investor Protection in the region

8,3 7,7

6,3 6,0 5,3 5,3

4,7

2,3

Colo

mbi

a

Peru

Chile

Méx

ico

Braz

il

Pana

ma

Arge

ntin

a

Vene

zuel

a

Investor Protection Index Doing Business - 2013

World Ranking Country

Colombia shows remarkable export growth

13.158 13.129

37.626 39.820

56.954

27.784

30.368

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan - Jun 2011

Jan - Jun 2012

Exports, 2000 – Sem. I 2012 US$ Million

Variation 2010 - 2011: 43% Variation Jan – Jun 2011 / 2012: 11.7% Source: DANE

Top Export Destinations 2011

United States • US $21,720 million • 38.1% Share

Netherlands • US $2,524 million • 4.4% Share

China • US $1,989 million • 3.5% Share

Chile • US $2,205 million • 3.9% Share

IN FORCE SIGNED IN NEGOTIATION

Canada

United States

Mexico

Guatemala

Honduras

El Salvador

Ecuador

Brazil Peru

Argentina

Paraguay

Uruguay

Liechtenstein

Switzerland

Iceland Norway

European Union

Turkey

South Korea

Israel

Japan

ALL

Fuente: Colombian Ministry of Commerce, Industry and Tourism. 2012.

Free Trade Agreements

Panama

Chile

Bolivia

Costa Rica

Venezuela

IN FORCE SIGNED IN NEGOTIATION

Note: The International investment agreements (IIA) include Agreement Investment Treaties – BIT (agreement) and Free Trade Agreements – FTA- with investment section (chapter).

International Investment Agreements - IIA

ALL FUTURE

Canada

Peru

Mexico

Spain

Switzerland

Liechtenstein

Chile

China India

North Triangle

United States

South Korea

Japan

Iceland

Norway

United Kindom European Union

Turkey

Panama

Kuwait

Israel

Uruguay

Russia

Azerbaijan

Canada

Peru

Mexico

Spain

Switzerland

Liechtenstein

Chile

China

India

North Triangle

South Korea

Japan United States

Iceland

Norway

United Kindom European Union

Turkey

Panama

Kuwait

Russia

Israel

Singapore

Uruguay

Azerbaijan

IN FORCE SIGNED IN NEGOTIATION

Ecuador

Perú

Bolivia

España

Chile

Suiza Canadá

México

Corea del Sur

India

Japón

Alemania

República Checa

Holanda

Bélgica

Portugal Francia Estados

Unidos

ALL

Double Taxation Agreements - DTA

Variation 2010–2011: +92% Figures obtained through the foreign currency balance of the central bank – Banco de La Republica. *Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil sector. Accumulated value 2000 – 2011: US $38,615 million Note: the list of the top countries investing in Colombia does not include Anguilla or Panama, in third and fourth place. Source: Balance of Payments - Banco de La Republica.

Main Investing Countries in Colombia 2000 – 2011*

FDI inflows in Colombia reached a record figure in 2011

3.683

8.070

13.388

Average 2000 - 2005

Average 2006 - 2010

2011

United States • Accumulated US$ 9,457 million • 24.8% share

UK • Accumulated US$ 5,614 million • 14.7% share

Spain • Accumulated US$ 3,491 million • 8.9% share

Canada • Accumulated US$ 1,373 million • 3.6% share

IED, 2000 –2011 US$ Million

Inward Direct Investment US$ bn. 6.12

7.55

13.2

5.9%

1.4%

2.9%

4.2%

14.7

5.1 1.6%

66.6 2.7%

Inward FDI flow/GDP(%)

Source: EIU, Banco de la Republica

Colombia is the third country in the region in terms of FDI flows as a percentage of GDP

68%

38%25% 25% 18%

Brazil Colombia Chile Mexico Peru

Source: North American and European Investor Opinions of Latin American Companies. J.P. Morgan. 2011.

Colombia is the second most promising market for investment in Latin America over the next three years

If you were to invest in a Latin American country in the next 3 years, where would you invest?

“  Colombia  is  earlier  in  its  growth  cycle  and  ‘more  emerging’  than  many  other  countries  in  the  region”

“Colombia´s Government seems pro-business and is taking the right steps  toward  encouraging  investment  in  the  country”

Colombia adheres to the OECD Declaration on International Investment and Multinational Enterprises.

OECD Investment Policy Review (February, 2012) recognices Colombia´s progress in pursuing policy reforms to promote investment liberalisation and improving the business climate

“The  review  examines

Colombia's achievements in developing an

open and transparent

investment regime and its efforts to

reduce restrictions on international

investment”  OECD

As an adherent to the Declaration, Colombia commits to : I

II

III

As an adherent to the Declaration, Colombia commits to treating foreign investors in the same way as domestic investors and to promoting responsible business conduct, in line with the Guidelines for Multinational Enterprises

Colombia’s  adherence  provides  further  international  support  for the principles of sound investment policy and corporate responsibility laid down in the Declaration.

In turn, the country benefits from similar assurances from other adherents to treat Colombian investors fairly.

Source: OECD, 2012.

Colombia’s  FDI  outflows  also  set  a  record  in  2011

Financial Services

52%

Energy 16%

Manufaturing 13%

Commerce, Rest., and

Hotels 10%

Oil and Mining

8%

Construction 1%

Other 0%

% Share by total FDI of positive flows from Colombia, without reinvesting profit Source: Banco de La Republica.

FDI from Colombia by Sectors 2011 %

Colombia´s FDI receptor countries 2000-2010

1. United States 2. England 3. Panama 4. Brazil 5. Peru 6. Guatemala 7. Mexico 8. Chile 9. Ecuador 10.Venezuela

Total FDI 2011: US$ 8,289 MillIon

1.05

3

1.19

5

1.22

3

1.35

4

1.47

5

1.58

2

775

805

51 127 228

285 296

315

244 147

2006 2007 2008 2009 2010 2011 Sem I 2011

Sem I 2012

Arrivals (Migración Colombia) Visitors in Cruises

Colombia is increasingly attractive to visitors

Sources: Colombia Migration, MCIT, Bank of the Republic. Proexport Calculations.

Foreign visitors in Colombia 2006 – Sem. I 2012 Thousands

Main nationalities of foreign visitors in Colombia, Sem. I 2012

United States • 156,394 visitors • 19.4% share

Venezuela • 108,365 visitors • 13.5% share

Argentina • 57,641 visitors • 7.2% share

Ecuador • 50,265 visitors • 6.2% share

AGRIBUSINESS

INFRASTRUCTURE

INNOVATION

MINING

HOUSING

National Development Plan, 2010 - 2014

-Allocate 10% of royalties for the strengthening of the Science, Technology, and Innovation System. -Increase participation of investment in R&D of 0.16% of GDP in 2012 to 0.5% of GDP in 2014. -Increment the value added exports (non mining & energy) by 31%, from US$ 14,318 million in 2010 to US$ 21,000 million in 2014. -Fund  the  training  for  2,550  new  PhD’s  thru  2014

INNOVATION

INFRASTRUCTURE •Investment in infrastructure between 3% and 4% of GDP, which means Colombia would double the current investments, this combined with mechanisms such as royalties and adaptation fund, will allow the country to have adequate levels of investment in the sector.

MINING

Locomotives–Linked Opportunities

-The Mining and Energy GDP will represent a growth of 16.8% by 2014, reflecting a share above 25% of the GDP in Colombia. -The mining and energy sector will generate 100,000 new jobs within 2012-2014. -The sectors total exports will exceed US$ 35,000 million by 2014. -By 2014, the goal is to reach 16,234 MW, in hydrocarbon(s) a production of 1,150,000 bpd, in mining a production of coal of 124 million tons, and extend the geological coverage of the country by 80%.

HOUSING

AGRICULTURE

Locomotives–Linked Opportunities

•Government Goal: 1 million social houses •Colombia is working on a plan to donate 100,000 homes to single mothers, refugees, victims of natural disasters, and those without access to a minimum wage.

• A goal of 600,000 hectare planted in 2014. •Colombia, third Latin American country with the highest rate of annual precipitation and eleventh worldwide. •Special Program for Commercial Reforestation: harnessing the potential of forests in the country (17 million hectares) promoting commercial reforestation as a strategic driver of the agricultural sector. •Single Forest Window: An instrument created to centralize the paperwork and procedures required in commercial forestry. •Regulated Forest Act •Agricultural Technology Innovation

Productive Transformation Program: A public - private partnership to strengthen and build world class sectors

16 Strategic Sectors

Cattle

SERVICES AGRICULTURE

BPO &O

Software & IT

Health Tourism

Chocolates and

Candy

Palm, Vegetable Oils and Biofuels

Shrimp farming

MANUFACTURING

Cosmetics

Graphic

Communications

Fashion System

Electric energy and

services

Auto parts and

Vehicles Industry

Ecotourism

Dairy products

Horticulture

Steel

10.2%

Colombia’s  Human  Capital

Source: IMD World Competitiveness, 2012.

Brazil, 1

3.9%

Colombia, 5

Peru,11

2.5% Chile, 16

1.8% Argentina, 19

1.3%

0.2%

Venezuela, 25

Mexico, 37

Labor force growth 2011

World Ranking among 59 countries % Labor force growth

1.6%

Colombia’s  Human  Capital: Strong credibility on managers among society

Fuente: IMD World Competitiveness, 2011. Ranking among 59 countries.

Managers Credibility, 2012 Scale 0-10. 0: weak– 10: strong

Colombia

Brasil

Venezuela

México

Perú

Chile

Argentina

A competitive workforce

Higher education and training

Position among 142 countries

Source: World Economic Forum 2011 - 2012

47 54 57 60

67 72

77

90

Chile Argentina Brazil Colombia Venezuela Mexico Peru Ecuador

Labor incentives

New employees under twenty eight (28) years old. Length of benefit by employee: 2 years.

1.

Discount in the income tax and supplementary contributions, and other contributions from payroll

(Do not include positions generated by mergers or replacements)

New employees certified in displacement situation, reintegration or disability. Length of benefit by employee: 3 years.

2.

New women employees above 40 years old with more than 1 year unemployed. Length of benefit by employee: 2 years.

3.

New employees with incomes lower than 1.5 Minimum Wages (US$ 476). Length of benefit by employee : 2 years

4.

Innovation incentives

Non taxable Income

Benefits in equipment imports

Resources received by scientific, technological and innovation projects does not constitute income.

Equipment and tools imported by R&D Centers recognized by Colciencias shall be exempt from sales tax (VAT).

Over investments in scientific and technological developments

175% Income Tax Deduction 1.

2.

3.

A country of regions and differentiated opportunities for investors

Central / Andean Region

Amazon Region

Pacific Region

Caribbean Region

Orinoquian Region

• Caribbean Region: Tourism, Logistics, Petrochemical, Construction Supplies Atlantic Export Platform

• Central/Andean Region: Outsourcing Services, high value-added manufacturing, hub to cover domestic market, specialized agribusiness • Pacific Region: Manufacturing, Agribusiness, logistics, biotechnology, Pacific export platform • Orinoquía Region: Agriculture, forestry, biofuels, hydrocarbons

•Amazon Region: Conservation, ecotourism (Leticia)

Automotive Cosmetics,

Toiletries and Cleaning Products

IT and BPO&O Agribusiness

Oil Products and

Services

Regions with opportunities by sectors

Building & construction

Materials Textiles

Assembly: In 2010, Colombia ranked as the fourth largest producer of the

region with a high growing potential. This sector employs 2.5% of manufacturing labor force in Colombia.

National and regional mass transportation system development (Panama)

Presence of international assembly plants: Renault, General Motors, Mazda, Toyota – Hino, Busscar, Superpolo and Daewoo Bus.

Auto parts 61% growth in auto part exports over the last five years. Around US $700 million sales in auto parts to local producers. Car fleet 1.2 million units bigger Creation and construction of a technological development center

for industry strengthening. Domestic and foreign companies certified according to the

highest international standards. Competitive incentive system: Warehouses for Processing or Assembling vehicles and auto parts (DHTE): 0% duty for importing vehicles produced or assembled to any of the Andean countries, as well as the auto parts and materials produced in these warehouses.

Production: About 20% industry growth (2010). Skilled Labor: More than 140,000 graduates with industry-related degrees between 2001 and 2010. Natural ingredient and cosmetic packaging companies Research and Development: One of the most biodiverse countries in the world R&D Centers Network for industry support: National Biotechnology Program and two important R&D centers supported by the public sector. Network of Universities and R&D Centers: 11 academic centers working on sector development and research. Tax Benefit through Colciencias: 175% income tax discount on the value invested in R&D. Logistics Centers: Trade Agreements: 7 trade agreements, 3 agreements signed and 3 under negotiation. Export Logistics: more than 3,700 scheduled shipping routes from 4 main ports that cover both the Atlantic and the Pacific oceans Main exporters of the Region One of the fastest growing markets with the highest share in the region.

BPO Creation of Shared Services Centers for Latin America. Opportunities for Outsourcing Companies that provide Costumer Care, ESO, FAO, HRO, Telemedicine, and

R&D services

Software & IT Services Development and integration of IT Services and

Applications. M&A and Software Factories Creation of Data Centers

Telecommunications Provide Telecommunications Services for growing

markets and strengthen Telecommunications Infrastructure.

•Dynamism of the construction sector in Colombia : Over 100% in terms of GDP in the last 9 years, and a growth of 30% of foreign investment in the last 6 years During 2011 Colombia´s GDP grew 5.9% and the construction sector 5.7%, which reflected a growth of 6.7% in infrastructure and 5.3% in building.

•Great opportunities in local market:

Positive trend with a compound growth of 16% in exports and an increase of 78% in direct investment.

•Human Resources: Availability of 131.00 professionals and technicians in the sector with an offer of qualified human capital, 28 specialized programs in training for the people who work with construction materials.

•Government committed with the sector development: housing and infrastructure are priorities which will generate a growing demand of construction materials of low, medium and high range.

Wide range of agriculture and livestock options due to Colombia's geographic position and characteristics.

12 million potential hectares for agricultural expansion.

great variety of climates and water availability.

constant brightness throughout the year

Tax exemption for long term crops. Between 2004 and 2014, new crops are exempt from tax in a 10 year period.

A government committed to the development of agriculture: The National Development Plan 2010-2014 identifies the agriculture sector as one of the five (5) engines for economic growth in Colombia.

Due to sector´s great dynamic there are opportunities in the Oil Products and Services sector for growth and improvements on an international scale. Growth is projected in terms of the number of wells explored (570 by 2014) and extraction (nearly one million barrels of oil per day, 2012).

The Cartagena Refinery will begin operating in 2013 with a capacity of 165,000 BDP. The demand for related goods and services at this facility as well as at the Barrancabermeja Refinery will increase.

Various investment opportunities exist in producing specialized, high-quality goods and developing high-tech oil services.

A regional goods and services export platform can be established to meet the needs of the Venezuelan, Peruvian and Ecuadorean markets.

Research, Development and innovation • Iniciatives and incentives to promote R&D+I: COLCIENCIAS • Public and private entities committed to innovation in the clothing sector: INEXMODA, CIDETEXCO • Recursos humanos e naturais para o desenvolvimento de projetos. Production and logistic centers • Sector with over 100 years of tradition and experience: Colombia has approximately 450 textile manufacturers and 10,000 apparel companies. • Growing domestic demand in the textile sector:

National domestic demand in 2011 was 5.9% driven by a vigorous household consumption, which rose 4.3%.

• Government programs of training for the sector: SENA - Currently has 12 specialized programs for the sector with national coverage.

• Export platform: 11 Free Trade Agreement with preferential access to over 1,500 consumers

• Excellent geographical location to supply the Americas. • Air and maritime infrastructure:

Over 3.700 maritime frequencies, near 1.000 air frequencies. Over 18 cargo airlines and more than 13 commercial airlines

A competitive Free Trade Zone framework

Guajira Magdalena

Atlantico

Bolívar

Valle del Cauca

Cauca

Norte de Santander

Santander

Boyaca

Cundinamarca

Huila

Antioquia

Caldas

Risaralda

Quindio

15% Taxes

No taxes for imports or VAT

Benefits from commercial agreements and FTA´s

No restrictions for sales in the local market

Free trade zones for different investor styles

More than 8 million sqr mtrs available for companies willing to locate in Free Trade Zones.

Caribbean Area

Andean Region

Pacific Region