Doing Business in Colombia. U.S. Department of Commerce International Trade Administration

Transcription

1 Doing Business in Colombia

2 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

3 Headlines Government 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

4 Why Colombia? An Economic Miracle 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

5 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

6 8.0% Why Colombia? GDP Growth % 6.9% 6.0% 4.0% 2.0% 1.9% 5.8% 5.6% 2.0% 3.7% 0.9% 3.0% 1.7% 2.5% 3.9% 5.3% 4.7% 2.7% 0.8% 4.0% 0.0% % -4.0% -6.0% Asia crisis Source: DANE/IMF *GDP per capita (nominal value) -4.2% Internal political and economic crisis ATPDEA Begins World Financial Crisis

7 $6,000 Why Colombia? GDP Per Capita Growth $5,000 $4,000 $3,000 $2,000 $1,000 $ Source: DANE/IMF *GDP per capita (nominal value)

8 Past vs. Present 1990 s Today 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

9 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

10 Market Trends 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

11 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

12 Market Trends: U.S. Colombia FTA Hearings March 9 th 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 informality

13 TransMilenio Bogota Market Trends: Major Projects Two Refinery Modernization projects Ports Cartagena, Salgar, Buenaventura Infrastructure Roads, El Dorado Airport Telecommunications

14 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 Refinery Equipment Valves Wellhead Equipment Compressors Equipment Needs Drilling Equipment Pipeline-related Equipment Enhanced Oil Recovery

15 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

16 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)

17 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 Julio.Carbo@trade.gov The National Restaurant Association Restaurant, Hotel-Motel (NRA Show) May 21-25, 2011 Chicago, Il Hospitality Alejandra.Henao@trade.gov Alejandra.Henao@trade.gov Louisiana Oil and Gas Expo October 23-25, 2011 Lafayette, LA Hydrocarbons Julio.Carbo@trade.gov *** for tradeshows in Colombia***.

18 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)

19 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

20 Margaret Hanson-Muse Commercial Counselor Contact Us Nicole DeSilvis Commercial Attache doc.gov US Commercial Service Unit 3030, Box 5120, DPO, AA Tel: (571) Fax: (571)