doing business in colombia · 2016. 5. 26. · •ports –cartagena, salgar, buenaventura...
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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 Glance
• Strategic geographical
location
• Rated #16 as tourist
destination in 2010 by
NY Times
• Fastest growing market
in Latin America for oil
and gas production
U.S. Department of Commerce
International Trade Administration
• Democratic Republic
• Presidential and Congressional
elections: May 2010
• Results: Juan Manuel Santos 69%Antanas Mockus 27.5%
• Next Municipal Elections: Oct 2011
• Next Presidential Elections: May 2014
Headlines
Government
U.S. Department of Commerce
International Trade Administration
• Next Tier Market under President Obama’s National Export Initiative
• GDP growth in 2010 despite global crisis (4% est.)
• Political stability
• Emphasis on Major projects
• Labor
- Educated
- Motivated
Why Colombia?
An Economic Miracle
U.S. Department of Commerce
International Trade Administration
Why Colombia?
An Economic Miracle
• Well managed foreign
debt
• Frequent travelers to
U.S. and Europe
• U.S. products preferred
• Growing population Photo: New El Dorado Airport
U.S. Department of Commerce
International Trade Administration
Why Colombia?GDP Growth
1991-2010
Source: DANE/IMF
*GDP per capita (nominal value)
1.9%
5.8% 5.6%
2.0%
3.7%
0.9%
-4.2%
3.0%
1.7%
2.5%
3.9%
5.3%
4.7%
6.7% 6.9%
2.7%
0.8%
4.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
1991 1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Asia crisis
Internal
political and
economic
crisis
ATPDEA
Begins World
Financial
Crisis
U.S. Department of Commerce
International Trade Administration
Why Colombia?GDP Per Capita Growth
1991-2010
Source: DANE/IMF
*GDP per capita (nominal value)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
1991 1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
U.S. Department of Commerce
International Trade Administration
Past vs. Present
• Corruption
• Protectionism
• Non- export orientation
• Low investment rates
• Informal business
management practices
• Security concerns
• Economic liberalization
• Diversification of Exports
• More transparency
• Sustained investment in
human resources and IT
• Improved Corporate Governance: Standards, CSR
• Improved Security
1990’s Today
U.S. Department of Commerce
International Trade Administration
Challenges
Social Economic
• Obtain a peaceful
solution to the
internal conflict
• Defeat corruption in
official agencies
• High displacement
rate
• Reduce poverty
• Large informal
economy
• Bureaucracy and
red tape
• Sluggish judiciary
• Tax evasion
• SMEs lack access to
credit
U.S. Department of Commerce
International Trade Administration
• 2011 est. GDP growth 4%
• Venezuela relationship?
• China/India/Brazil trade
growing
• More trade and investment
with Peru, Chile and Canada
• Acceptance of UL standards
• Internet/social networking
• U.S. EXIM granted $1 billion to
Ecopetrol
Image subject to copyright
Market Trends
U.S. Department of Commerce
International Trade Administration
Market Trends: FTA Negotiations
Agreements implemented:
• Andean Community (CAN) (Ecuador, Peru, Bolivia)
• Mercosur (Argentina, Brazil, Paraguay, Uruguay)
• Mexico
• Chile
Ratified:
• Central America Triangle (Honduras, El Salvador
and Guatemala)
• Canada
• European Free Trade Association EFTA (Switzerland, Norway, Iceland and Liechtenstein)
Pending ratification:
• USA
• European Union
Market Trends:
U.S. Colombia FTA • Hearings – March 9th
• Will help NEI but is NOT a panacea
• It can: - Increase trade/investment
- Create/save jobs
- Increase market access for goods/services
- Reduce prices/increase variety
- Improve business climate
- Reduce corruption and informalityU.S. Department of Commerce
International Trade Administration
U.S. Department of Commerce
International Trade Administration
Market Trends:
Major Projects
• TransMilenio – Bogota
• Two Refinery Modernization projects
• Ports – Cartagena, Salgar, Buenaventura
• Infrastructure – Roads, El Dorado Airport
• Telecommunications
Colombian Oil & Gas Opportunities(through 2020)
• Fastest growing market in Latin America – 825,000 BPD
• Huge Investment program = $80 billion
– Cartagena Refinery Modernization US $4 billion
– Barrancabermeja Refinery US $3.5 billion
– Crude and Gas Transport Expansions US $5 billion
U.S. Department of Commerce
International Trade Administration
• Refinery Equipment
• Valves
• Wellhead Equipment
• Compressors
Equipment Needs• Drilling Equipment
• Pipeline-related Equipment
• Enhanced Oil Recovery
U.S. Department of Commerce
International Trade Administration
INFRASTRUCTURE
Ports Cormagdalena is seeking USG assistance in developing the Magdalena River)
SPRC/SPBUN/SANTA MARTA/SPBAQ US$ 50 Million in US exports of security, computer and other port related equipment. CONPES by DIAN/Mincomercio
Puerto Bahia (US$225 million Project. US$ 25 Million in US exports of security, computer and other port related equipment)
Airports El Dorado Airport (US$1.2 Billion project. US$ 200 Million in US exports of security,
computer and other port related equipment)
North-East Region Concession , North-Central Region Concession , Cartagena, Barranquilla and Manizales airport (currently under construction)
Roads RUTA DEL SOL TWO WAY HIGHWAY (US $2.5 billion)
RUTA DE LAS AMERICAS HIGHWAY (US$ 4 billion)
AUTOPISTA DE LA MONTAÑA WAY HIGHWAY (US $ 2.5 billion)
AUTOPISTA DE LAS AMERICAS (US $ 3.5 billion)
LA LINEA TUNNEL PROJECT (Second lane). One way lane currently under construction
U.S. Department of Commerce
International Trade Administration
INFRASTRUCTURE
Mass Transportation• TRANSMILLENEO TYPE - BUS RAPID TRANSIT SYSTEM (US $ 2.5 billion)
Metrocali (Cali): 90% executed. Approximately cost: US$ 800 million.
Metroplús (Medellín): 70% executed. Approximately cost: US$ 300 million.
Transmetro (Barranquilla): 90% executed. Approximately cost: US$ 200 million
Transcaribe (Cartagena): 60% executed. Approximately cost: US$ 200 million
Metrolínea (Bucaramanga): 90% executed. Approximately cost: US$ 200 million
Megabus (Pereira): 98% executed. Approximately cost: US$ 100 million
Transmilenio (Bogotá): Phase I: 100% executed; Phase II: 40% executed; Approximately cost: US$ 900 million
• BOGOTA METRO (US $ 2.5 billion the first phase)
• TREN DE CERCANIAS PROJECT (US $800 million )
• AVENIDA LONGITUDINAL DE OCCIDENTE (ALO) HIGHWAY (US$ 400 million)
• CALLE 13 HIGHWAY (US$ 400 million)
• INTELLIGENT TRANSPORTATION SYSTEMS (ITS) (US$ 500 million just for Bogotá)
U.S. Department of Commerce
International Trade Administration
Market Practices Upcoming Trade Shows
2011
trade.gov
• The 2011 National Association of Broadcasters
(NAB)
April 11-14,, 2011 –Las Vegas, NV
Broadcasting/ICT
•Offshore Technology Conference
May 2-5, 2011 – Houston, TX
Energy - Hydrocarbons
.
***http://www.corferias.com/ for tradeshows in Colombia***
•The National Restaurant Association
Restaurant, Hotel-Motel (NRA Show)
May 21-25, 2011 – Chicago, Il
Hospitality
•Louisiana Oil and Gas Expo
October 23-25, 2011 – Lafayette, LA
Hydrocarbons
Market Practices
Certified Trade Missions
2011• State of Kentucky
(March)
• State of West Virginia:
(April)
• States of No. and So.
Carolina: (April)
State of Arizona: (May)
• State of Colorado:
(October)U.S. Department of Commerce
International Trade Administration
U.S. Department of Commerce
International Trade Administration
Market Practices
Tips for Success in Colombia
• Check the “Clinton List”/OFAC website
• Contact the FCS at the Embassy
• Identify partners/background check
• Use situational awareness for security
• Arbitration clauses in contracts
U.S. Department of Commerce
International Trade Administration
Contact Us
Margaret Hanson-Muse
Commercial [email protected]
Nicole DeSilvis
Commercial [email protected]
doc.govUS Commercial Service
Unit 3030, Box 5120, DPO, AA 34004
Tel: (571) 383-2519
Fax: (571) 315-2171
www.buyusa.gov/colombia