Doing Business in Colombia

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

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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