u.s. department of commerce international trade administration doing business in colombia
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U.S. Department of Commerce International Trade Administration
Doing Business in Colombia
U.S. Department of Commerce International Trade Administration
Colombia at a GlanceColombia at a Glance
33rdrd largest population in largest population in Latin AmericaLatin America
440,831 square miles 440,831 square miles
Strategic geographical Strategic geographical location location
Religion: Roman Catholic Religion: Roman Catholic 95%95%
Language: Spanish (official)Language: Spanish (official)
Literacy Rate: 94%Literacy Rate: 94%
System of Government: System of Government: PresidentialPresidential
U.S. Department of Commerce International Trade Administration
• Positive economic growth
• Political stability• Major projects• Labor
- Educated
- Motivated
Why Colombia?Why Colombia?An Economic MiracleAn Economic Miracle
U.S. Department of Commerce International Trade Administration
Why Colombia?Why Colombia?An Economic MiracleAn Economic Miracle
• Well managed foreign debt
• Frequent travel to U.S. • U.S.products preferred • Growing population
Photo: New El Dorado Airport
U.S. Department of Commerce International Trade Administration
GDP and GDP per capita Source: FMISource: Trade Source: DANE/Comunidad Andina –CAN-GDP % Source: DANE
Why Colombia?Why Colombia?
An Economic MiracleAn Economic Miracle
2000 2006 2007(e) 2008(e)
GDP (US$ bn) 83.8 135.0 171.3 182.1
GDP per capita
(US$) 2,192 2,888 3,614 N/A
Exports (US$ bill)
FOB13.1 24.3 28.4 N/A
Imports (US$ bill)
FOB10.9 24.5 28.1 N/A
GDP (%) 3% 6.8% 7.0% N/A
U.S. Department of Commerce International Trade Administration
Market Statistics COLOMBIA PERU ECUADOR BOLIVIA
GDP
(US$ bn)
171.3 101.5 45.1 11.9
GDP per capita (US$)
Nominal value (e)
3,614 3,616 3, 243 1,293
Exports (US$ bn)
FOB
28.4 30.5 12.2 4.7
Imports (US$ bn)
CIF
28.1 16.6* 12.2* 2.7*
Why Colombia?Andean Nations Comparative Chart
2007
GDP Source: FMIGDP per capita estimated data for the year 2007 for members of the International Monetary FundTrade Source: Comunidad Andina de Naciones –CAN* 2006, Source: CAN, 2007 estimate N/A
U.S. Department of Commerce International Trade Administration
Past vs. PresentPast vs. Present
• Low investment rates• Informal business
management practices • Security concerns
• Sustained investment in human resources and IT
• Improved Corporate Governance
- Standards, Social responsibility
• Improved Security
1990’s Today
U.S. Department of Commerce International Trade Administration
Past vs. PresentPast vs. Present
• Corruption
• Protectionism
• Non- export orientation
• More transparency
• Economic liberalization
• Diversification of Exports
1990’s Today
U.S. Department of Commerce International Trade Administration
Controlled inflation without hyperinflation
Increased Peso appreciation Colombia has the longest electoral
tradition in the regionEducation enrollment reached 88%
StrengthsStrengths
U.S. Department of Commerce International Trade Administration
ChallengesChallenges
SocialSocial EconomicEconomic
Obtain a peaceful solution to the internal conflict
Defeat corruption in official agencies
Overcome peasants’ displacement
Reduce poverty
Large informal economyBureaucracy and red
tapeSluggish judiciaryTax evasionSMEs lack access to
credit
U.S. Department of Commerce International Trade Administration
• 2006 homicide rate lowest in 19 years• In last 5 years, kidnapping reduced by 72%,
homicides reduced by 37%, terrorist attacks reduced by 63%
• By 2007 government demobilized total of 47,000 paramilitary members
• Attacks on public infrastructure reduced
HeadlinesHeadlines
Security ImprovingSecurity Improving
U.S. Department of Commerce International Trade Administration
Trade Agreements FTA Negotiations with other countries
- Colombia and Chile Status: Signed November 2006
- Colombia and Central America Triangle (Honduras, El Salvador and Guatemala)Status: Signed August 2007
- Colombia and Perú with European Free Trade Association EFTA (Switzerland, Norway, Iceland and Liechtenstein) Status: Negotiations began June 2007
- Colombia and Peru with CanadaStatus: Negotiations began Nov. 2007
U.S. Department of Commerce International Trade Administration
Best Prospects
• Safety and Security Equipment
• Food Processing and Packaging Equipment
• Processed foods• Cotton/ yarns• Wheat/corn/soy/ oilseeds
U.S. Department of Commerce International Trade Administration
Best Prospects
• Oil and Gas Equipment
• General Equipment• Telecommunications• Financial Services
U.S. Department of Commerce International Trade Administration
Best ProspectsServices
• IT • Construction and
Engineering• Distribution • Entertainment • Energy• Consulting • Healthcare
U.S. Department of Commerce International Trade Administration
Tips for Success in Colombia
• Contact the FCS at the Embassy• Be informed• Identify partners/background check • Use situational awareness for security• Check the “Clinton List”/OFAC website
U.S. Department of Commerce International Trade Administration
Additional Information
Doing Business in Colombia
Colombian market research
Trade Fairs in the U.S.
Business Service Providers
Best Prospect Sectors
Feature Your Company on our Website “FUSE”
U.S. Department of Commerce International Trade Administration
www.export.gov
www.buyusa.gov/colombia/en
www.proexport.com.co
www.amchamcolombia.com.co
www.ceacolombia.com
www.presidencia.gov.co
Additional Information
Useful Links
U.S. Department of Commerce International Trade Administration
Contact Us
South Florida U.S. Export Assistance CenterU.S. Department of Commerce200 Las Olas Blvd. Suite 1600Fort Lauderdale, FL 33301Tel: 954 356 6640 Ext. 15Fax: 954 356 6644 5835 Blue Lagoon Drive, Suite 203Miami, FL 33126Tel: (305) 526 7425 Ext 22Fax: (305) 526 7434 Email: [email protected]://www.buyusa.gov/florida/http://www.export.gov - Your Partner in Exporting