Business Opportunities in Colombia

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Business Opportunities in Colombia

• Larry Farris
• Commercial Counselor
• US Embassy, Bogotá
• May 2006

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Colombia

• Land mass - 440,000 square miles
• GDP per capita of 2,574 (6,100 in Bogotá)
• Population 46 million (90 under 50 years old)
• 71 urbanized

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Colombian Economy

• 2005 GDP US 118.1 Billion
• Growth estimated at 4.3, US 2,574 per capita
• Manufacturing 14.2
• agriculture 13.5
• financial services 17.2
• Commerce 11.4
• Transportation/communications services 8.2
• mining and quarrying 4.8
• construction and public works 5.3
• government, personal and other services 19.5
• electricity, gas, and water 3.0.

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Consistent Economic Growth

• Colombia has registered nearly 70 years of
  consistant economic growth.
• Lowest inflation volatility in Latin America
  (6.5).
• Successfully weathered economic shocks that
  affected other Latin American economies.
• Steady economic growth at about 4.0.

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US Trade with Colombia

• Total US-Colombian trade in 2005 was 13.7
  billion.
• Colombia ranks 31 trade partner with US.
• 4th largest market for US goods in Latin America
  (after Brazil, Mexico, Venezuela).
• 56 US imports from Colombia are in hydrocarbons
  sector
• Primary US exports industrial machinery,
  chemicals, grains, transportation equipment.
• Primary Colombian exports to US hydrocarbon
  prods., gem stones, coffee, cut flowers,
  clothing, fruits.

US Billions
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US Investment in Colombia

• Colombia 6 destination of US FDI in Latin
  America (after Brazil, Mexico, Argentina, Chile
  and Venezuela).
• Total US FDI in Colombia 6.5 billion (28).
• Jan-Aug 05 1.9 billion in new US investment in
  Colombia, 42 above previous year.
• Colombia lifted remittance controls, national
  treatment, eased prior approval requirements.
• Recent increases in European share of FDI.

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Major US Multinationalsin Colombia

• Company Name Amount Invested (In millions)
• Exxon Mobil 1,333
• Chevron Texaco 717
• Drummond (Coal) 518
• General Motors 497
• Colgate Palmolive 289
• Citibank 272
• Hewlett Packard 258
• Coca Cola 248
• Liberty Insurance 239
• Occidental Petroleum 213
• Smurfit-Stone Containers 199

8
Political Stability

• Congressional Elections March 12
• Strengthened Congressional support for President
  Uribe
• Continuity, support for reforms
• Presidential Elections May 28
• Uribe running for second 4 year term
• If needed, second round June 18

9
Security

• Greatly improved, but still serious issues
• 2005 homicide rates lowest in 18 years
• Kidnappings down by 40 in last 4 years
• Paramilitary demobilizations nearly complete
• Attacks on infrastructure on downward trend

10
US-Colombia TPA

• 14 rounds, 22 months of negotiations
• Good deal for both sides
• US market access, APDEA continuity
• All products (except sugar) to reach zero tariff
  in no more than 19 years, most immediately
• Services, IPR, Government Procurement

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Opportunities for Colorado Companies

• Oil Gas.
• Emphasis on new exploration and production,
  offshore.
• 3 billion refinery expansion/modernization and
  Petrochemical Projects. 1.4 billion Ecopetrol
  investments for 2006 (up 56 from 2005).
• Colombia-Venezuela Gas Pipeline Project.
• Natural gas market development.
• Energy.
• Thermal (33) to supplement hydro (67)
• Renewables, wind power projects.

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Opportunities

• Safety and Security
• Residential and commercial alarm systems
• Biometrics
• Transportation and logistics security
• Food Processing and Packaging Equipment
• Rapidly expanding export market is driving need
  for state-of-the-art food processing equipment
• Telecommunications
• Broadband technologies, services and equipment

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Opportunities

• Healthcare Services and Medical Equipment
• Hospital upgrades
• Preventative care early diagnosis
• Business and other Services
• Legal, real estate, franchising
• Processed Foods
• Cotton/yarns
• Wheat/corn/soy/oilseeds
• For detailed information on all Best Prospects
  Sectors, go to
• http//www.buyusa.gov/colombia/en/best_prospects.h
  tml

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Upcoming Events

• May 15-17 US-Colombia Matchmaker
• June 27-28 Transportation Mission
• August 3-5 Logistics Exhibition and Conference
• Sept 24-27 Oil Gas Symposium
• Oct 3-6 Bogotá Industrial Fair
• Oct 25-27 Andiacom Exhibition and Conference
• Dec 3-5 Oil Gas Investment Conference

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Useful Links

• www.export.gov
• www.buyusa.gov/colombia/en
• www.proexport.com.co
• www.amchamcolombia.com.co
• www.ceacolombia.com
• www.presidencia.gov.co

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Contact Us

• US Commercial Service Bogotá
• Unit 5120
• APO AA 34038
• Tel [phone]
• Fax [phone]
• www.buyusa.gov/colombia
• Larry Farris, Commercial Counselor
• larry.farris_at_mail.doc.gov
• Geoffrey Bogart, Commercial Attaché
• geoffrey.bogart_at_mail.doc.gov

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