Republic of Colombia The South America Country Series

Transcription

1 2017 Republic of Colombia The South America Country Series

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3 Republic of Colombia May 2017

4 Acknowledgements Team Leader: Samir S. Amir Lead Researcher: Aqsa Jawed Disclaimer The findings, interpretations and conclusions expressed do not necessarily reflect the views of the Board of Directors and Members of The Pakistan Business Council or the companies they represent. Any conclusions of analysis based on ITC, World Data Bank, OECD Data, Doing Business and The World Factbook data are the responsibility of the author(s) and do not necessarily reflect the opinion of the UN, WTO, World Bank, OECD or CIA. Although every effort has been made to cross-check and verify the authenticity of the data, The Pakistan Business Council, or the author(s), do not guarantee the data included in this work. All data and statistics used are correct as of February 2, 2017, and may be subject to change. For any queries or feedback regarding this report, please contact or Cover Picture: Caño Cristales Los Ochos by Mario Carvajal. Wikimedia Commons. This file is licensed under the Creative Commons Attribution 3.0 Unported license. OCHOS_01.jpg ii Republic of Colombia

5 The Pakistan Business Council: An Overview The Pakistan Business Council (PBC) is a business policy advocacy forum, representing private-sector businesses that have substantial investments in Pakistan s economy. It was formed in 2005 by 14 (now 60) of Pakistan s largest businesses, including multinationals, to allow businesses to meaningfully interact with government and other stakeholders. The Pakistan Business Council is a pan-industry advocacy group. It is not a trade body nor does it advocate for any specific business sector. Rather, its key advocacy thrust is on easing barriers to allow Pakistani businesses to compete in regional and global arenas. The PBC works closely with the relevant government departments, ministries, regulators and institutions, as well as other stakeholders including professional bodies, to develop consensus on major issues which impact the conduct of business in and from Pakistan. The PBC has submitted key position papers and recommendations to the government on legislation and other government policies affecting businesses. It also serves on various taskforces and committees of the Government of Pakistan as well as those of the State Bank, SECP and other regulators with the objective to provide policy assistance on new initiatives and reforms. The PBC conducts research and holds conferences and seminars to facilitate the flow of relevant information to all stakeholders in order to help create an informed view on the major issues faced by Pakistan. The PBC s Founding Objectives: To provide for the formation and exchange of views on any question connected with the conduct of businesses in and from Pakistan. To conduct, organize, set up, administer and manage campaigns, surveys, focus groups, workshops, seminars and field works for carrying out research and raising awareness in regard to matters affecting businesses in Pakistan. To acquire, collect, compile, analyse, publish and provide statistics, data analysis and other information relating to businesses of any kind, nature or description and on opportunities for such businesses within and outside Pakistan. To promote and facilitate the integration of businesses in Pakistan into the world economy and to encourage the development and growth of Pakistani multinationals. To interact with Governments in the economic development of Pakistan and to facilitate, foster and further the economic, social and human resource development of Pakistan. The PBC is a Section 42 not-for-profit Company Limited by Guarantee. Its working is overseen by a Board of Directors elected every three years by the Membership with the Board being headed by a Non-Executive Chairman. The day-to-day operations of the PBC are run by a professional secretariat headed by a full-time, paid CEO. More information on the PBC, its members, and its workings, can be found on its website: Republic of Colombia iii

6 The PBC s Member Companies

7 The PBC s Member Companies South Asia Pakistan Terminals

8 Executive Summary The Pakistan Business Council (PBC), as a part of its ongoing research initiatives, is conducting a series of studies on key economies in South America. Country Profiles for Argentina, Brazil, Chile and Mexico have already been published. This brief Study aims to highlight the economy, trade and investment opportunities in Colombia. Table below shows a comparison between the Colombian and Pakistani economies. In 2015, Pakistan s population was about four times the size of the Colombian population. Whereas Colombia s GDP shrunk between 2013 and 2015, Pakistan s GDP grew in that period with GDP increasing from $ 231 billion in 2013 to $ 271 billion in And while the Colombian Peso depreciated nearly 47% against the US $ in that period, the Pakistani Rupee performed better as it depreciated only 1.1% in the same period. However, Colombia was able to attract more foreign direct investment than Pakistan; FDI inflows to Colombia were about 12 times FDI inflows to Pakistan in Colombia Pakistan Population, total (millions) GDP (current US $ billions) GDP growth (annual %) Foreign direct investment, net inflows (current US $ billions) Official exchange rate (LCU per US $, period average) , , , Located between Panama and Venezuela, Colombia is the fourth largest economy in South America and the thirty-ninth largest economy in the world. The country is rich in natural resources and depends heavily on energy and mining exports. An emerging market, Colombia s main export earnings are from fuels. Colombia is the world s fourth largest coal exporter and Latin America s fourth largest oil producer. Real GDP growth averaged 4.8% per year from before it slowed down in 2015 to 3.08% falling further to 1.7% in The country s economy is expected to recover in In 2015, the service sector contributed 59.19% to the GDP whereas industry and agriculture contributed 33.98% and 6.83% respectively to total GDP. Trade between Pakistan and Colombia has remained low in the past ten years. In 2016, both sides expressed an interest to improve trade relations. In 2015, Pakistan s import potential for top fifteen products from Colombia amounted to $ 1.47 billion whereas potential exports to Colombia were $ 1.18 billion. Medicaments for therapeutic or prophylactic purposes and polypropylene dominate the list of Pakistan s potential imports from Colombia. Instruments and appliances used in medical, surgical or veterinary sciences, Portland cement and Semimilled or wholly milled rice are Pakistan s high potential exports to Colombia. vi Republic of Colombia

9 List of Tables Executive Summary:... vi Key Social Indicators:...03 Short Country History:...07 Economic Overview:...08 Colombia s Main Industries:...12 Natural Resources:...12 Agriculture:...12 Industry:...13 Trade in Services:...13 Foreign Direct Investment:...15 Trade Overview:...19 Trade Balance:...19 Major Trading Partners:...21 Imports:...21 Exports:...22 Major Imports:...23 Major Exports:...25 Colombia s Regional Trade:...29 Colombia s Trade with Latin America and the Caribbean:...29 Colombia s Trade Alliances:...37 Latin America Integration Association (ALADI/LAIA):...38 Andean Community (CAN):...42 Colombia s Trade with Pakistan:...49 Imports from Colombia:...49 Exports to Colombia:...51 Pakistan s Potential Trade with Colombia:...54 Trade Potential:...54 Colombia s Trade with China and India...59 Colombia s Trade with China:...59 Colombia s Trade with India:...62 Ease of Doing Business:...67 Ease of Doing Business:...67 Consulates:...67 Republic of Colombia vii

10 List of Tables Table 1: Key Economic Indicators...09 Table 2: Colombia s Top 10 Origin of Imports...21 Table 3: Colombia s Top 10 Export Partners...22 Table 4: Colombia s Top Imports at HS-02 Level...23 Table 5: Colombia s Top Imports at HS-06 Level...24 Table 6: Colombia s Top Exports at HS-02 Level...25 Table 7: Colombia s Top Exports at HS-06 Level...26 Table 8: Top Sources of Imports from Latin America & the Caribbean...30 Table 9: Top Export Destinations in Latin America & the Caribbean...30 Table 10: Colombia s Top Imports from Latin America & the Caribbean...32 Table 11: Colombia s Top Exports to Latin America & the Caribbean...33 Table 12: Colombia s Preferential Trade Agreements...37 Table 13: Top Sources of Imports from ALADI/LAIA...39 Table 14: Top Export Destinations in ALADI/LAIA...39 Table 15: Colombia s Top Imports from ALADI/LAIA...40 Table 16: Colombia s Top Exports to ALADI/LAIA...41 Table 17: Top Sources of Imports from the Andean Community...43 Table 18: Top Export Destinations in the Andean Community...43 Table 19: Colombia s Top Imports from the Andean Community...44 Table 20: Colombia s Top Exports to the Andean Community...45 Table 21: Pakistan s Top Imports from Colombia at HS-02 Level...50 Table 22: Pakistan s Top Imports from Colombia at HS-06 Level...51 Table 23: Pakistan s Top Exports to Colombia at HS-02 Level...52 Table 24: Pakistan s Top Exports to Colombia at HS-06 Level...53 Table 25: Pakistan s Top Potential Imports from Colombia at HS-06 Level...55 Table 26: Pakistan s Top Potential Exports to Colombia at HS-06 Level...56 Table 27: Colombia s Top Imports from China...60 Table 28: Colombia s Top Exports to China...61 Table 29: Colombia s Top Imports from India...63 Table 30: Colombia s Top Exports to India...64 Table 31: Ease of Doing Business Indicators...67 viii Republic of Colombia

11 List of Tables Figure 1: Population of Colombia Figure 2: GDP of Colombia, Figure 3: GDP growth rate of Colombia, Figure 4: Foreign Direct Investment in Colombia, Figure 5: Official Exchange Rate (LCU) Per US dollar, Figure 6: Exports and Imports as a percentage of GDP Figure 7: GDP of Colombia as a percent of Sector Composition, Figure 8: Breakup of Total Exports-Services, Figure 9: Breakup of Total Imports-Services, Figure 10: Colombia s Trade Balance Figure 11: Breakup of Total Imports, Figure 12: Breakup of Total Exports, Figure 13: Colombia s Top 5 Origin of Imports Figure 14: Colombia s Top 5 Export Partners Figure 15: Colombia s Trade with Latin America & the Caribbean Figure 16: Colombia s Trade with ALADI/LAIA Figure 17: Colombia s Trade with Andean Community Figure 18: Pakistan s Trade with Colombia Figure 19: Potential Trade between Pakistan and Colombia, Figure 20: Colombia s Trade with China Figure 21: Colombia s Trade with India Republic of Colombia ix

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13 Section 1 Key Social Indicators Republic of Colombia 01

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15 Key Social Indicators: Official Name: Republic of Colombia Geographical Location: Northern South America, bordering the Caribbean Sea, between Panama and Venezuela, and bordering the North Pacific Ocean, between Ecuador and Panama. Geographic Coordinates: N Latitude, W Longitude Country Map: Republic of Colombia 03

16 Total Area: 1,138,910 sq. km land: 1,038,700 sq. km water: 100,210 sq. km Land Boundary: 6,672 km Border Countries: Brazil 1,790 km, Ecuador 708 km, Panama 339 km, Peru 1,494 km, Venezuela 2,341 km Coastline: 3,208 km Population: 47,220,856 (July 2016 est.) Language: Spanish Religion: Roman Catholic 90%, other 10% Currency: Peso Capital City: Bogota Administrative Divisions: 32 departments and 1 capital district* ; Amazonas, Antioquia, Arauca, Atlantico, Bogota*, Bolivar, Boyaca, Caldas, Caqueta, Casanare, Cauca, Cesar, Choco, Cordoba, Cundinamarca, Guainia, Guaviare, Huila, La Guajira, Magdalena, Meta, Narino, Norte de Santander, Putumayo, Quindio, Risaralda, Archipielago de San Andres, Providencia y Santa Catalina (colloquially San Andres y Providencia), Santander, Sucre, Tolima, Valle del Cauca, Vaupes, Vichada 04 Republic of Colombia

17 Government System: Presidential Republic Legal System: Civil law system influenced by the Spanish and French civil codes Age Structure: 0-14 years: 24.57% (male 5,940,903/female 5,659,594) years: 17.54% (male 4,216,437/female 4,066,079) years: 41.82% (male 9,788,057/female 9,958,982) years: 8.9% (male 1,973,215/female 2,230,609) 65 years and over: 7.17% (male 1,412,209/female 1,974,771) (2016 est. Life Expectancy at Birth: total population: 75.7 years male: 72.6 years female: 79 years (2016 est.) Urbanization: urban population: 76.4% of total population (2015) rate of urbanization: 1.66% annual rate of change ( est.) Transportation: Roads: 204,855 km (2015) Railways: 2,141 km Airports: 836 (2013) - Paved Runways: Unpaved Runways: 715 Heliports: 3 (2013) Major Seaports: Atlantic Ocean (Caribbean) - Cartagena, Santa Marta, Turbo: Pacific Ocean - Buenaventura Major International Airports: Airport Name El Dorado International Airport José María Córdova International Airport Rafael Núñez International Airport Alfonso Bonilla Aragón International Airport Alfredo Vásquez Cobo International Airport Gustavo Rojas Pinilla International Airport Matecaña International Airport Simón Bolívar International Airport Camilo Dazo International Airport El Edén International Airport Location Bogotá Medellín Cartagena Cali Leticia San Andrés Pereira Santa Marta Cúcuta Armenia Republic of Colombia 05

18 Communication: Country Code: +57 Telephones- Fixed Lines: - Total Subscriptions: 7,109,254 - Subscriptions per 100 Inhabitants: 15 (July 2015 est.) Telephones- Mobile Cellular: - Total Subscriptions: million - Subscriptions per 100 Inhabitants: 123 (July 2015 est.) Internet Users: - Total: million - Percent of Population: 55.9% (July 2015 est.) 06 Republic of Colombia

19 Short Country History: Colombia is the only country in South America which is named after Christopher Columbus, even though Columbus never visited the country. The first Spanish explorer, Alonso de Ojeda, arrived in Colombia in The Spanish established their first settlement in Santa Marta in 1525 and Cartagena and Bogota were founded in 1533 and 1538 respectively. The timeline below highlights important events of Colombia till the 20th century. Audencia of Santafe de Bogota, a judicial tribunal is formed Local jurisdictions in New Granada rebel against Spanish officials Ecuador and Venezuela secedes from Gran Colombia Republic of New Grenada is formed Name of the Republic is changed to United States of Colombia Panama leaves the Republic Viceroyalty of New Granada is formed, including present day Colombia, Panama, Venezuela and Ecuador Republic of Greater Colombia or Gran Colombia is formed by Simon Bolivar, consisting of Colombia, Panama, Venezuela and Ecuador Emergence of the Conservative and Liberal parties The country adopts its present name: Republic of Colombia Since its inception, the Gran Colombia and later the Republic of New Grenada was divided between two political parties, the Conservatives and the Liberals. This political rivalry led to violence in the period : an estimated 100,000 people were killed during the Thousand Days War ( ). The bitter divide between the Liberals and Conservatives led to another power struggle resulting in the period known as the La Violencia in the late 1940s and 1950s. The resulting rioting and property damage (estimated at $ 570 million throughout the country) came to be called the bogotazo and up to 300,000 people died during this period. In 1957, leaders of both parties introduced the National Front where both sides agreed to share power for the next 16 years and to alternate the presidency every four years till In the 1960s and 1970s, guerrilla groups such as May 19th Movement (M-19), the National Liberation Army (ELN), and the Revolutionary Armed Forces of Colombia (FARC), created an atmosphere of violence and instability. In the 1980s, Colombia became a major centre for drug trafficking. Presence of guerrilla forces and powerful drug cartels made Colombia a dangerous country to live in. In 2004, UN declared that the 39-year-long war on drugs had displaced as many as 2 million people with thousands kidnapped or killed. In 1990, Cesar Gaviria became the President of Colombia after three other presidential candidates were assassinated by narco-terrorists. President Gaviria introduced a new constitution in 1991 that aimed to create peace between the rebel forces and the government. However, statistics indicate that violence was as prevalent at the end of Gaviria period as before. The last decade of the 20th century saw an increase not only in terrorism but also saw Colombia entering into its worst recession since the Great Depression. Republic of Colombia 07

20 In 2000, US offered assistance to the Colombian government to help control the drug trade and in 2002, Alvaro Uribe of the Liberal Party became the President of Colombia. His hardline policies on rebels and drug traffickers provided the much-needed economic stability to the country. Subsequently, there was a decline in the number of terrorist attacks, crimes and kidnappings. In 2008, political tensions escalated in the region when Colombian forces entered Ecuador to raid a FARC encampment and which resulted in the killing of the FARC leader, Raul Reyes. In response, Ecuador, Venezuela and Nicaragua broke off diplomatic ties with Colombia. However, these countries ended their dispute shortly afterwards during a summit meeting in the Dominican Republic. Juan Manuel Santos became the President of Colombia in 2010 and was re-elected for a second term in President Santos in 2012 initiated peace negotiations with the FARC rebels with the objective of trying to find a peaceful solution. Overcoming numerous impediments in reaching an agreement, the government and the FARC forces signed a peace deal in September However, a national referendum annulled the decision, with many people viewing the government as being too lenient on the FARC rebels. Despite this setback, the government and the FARC forces appear determined to continue negotiations for a peace agreement and the ceasefire that was part of the September 2016 peace deal is still in place. Economic Overview: Economy: Colombia is the fourth largest country in South America in terms of area, and the 26th largest country in the world. In terms of GDP, Colombia ranked fourth in Latin America and 39th in the world in The country has abundant natural resources but depends heavily on energy and mining exports. Considered an emerging market, its main export earnings are from fossil fuels. Colombia is the world s fourth largest coal exporter and Latin America s fourth largest oil producer. It is also a major producer of gold, silver, coal and platinum. The country is also a major producer of emeralds. Rich in hydel resources, Colombia generates roughly threefourths of its electricity through hydroelectric plants. Colombia s potential for hydroelectric power is greater than any other country in South America except Brazil. The introduction of sound macroeconomic and fiscal policies by the Santos administration has allowed Colombia to become one of the fastest growing economies in the region. Unemployment hit a record low in 2015 at 8.9 percent and real GDP growth averaged 4.8 percent per year between However, the fall in oil prices and a slowdown of the global economy had an adverse impact on the country s economy; economic growth slowed down from 4.6 percent in 2014 to 3.1 percent in This further slowed down to 1.7 percent in It is, however, expected that the country s economy will recover in A report published by the World Bank in mid-2016, predicted that GDP growth for Colombia would be 2.5 percent in Falling oil prices have also led to a depreciation of the Colombian Peso over the last seven years. In 2010, the official exchange rate was 1,898 Colombian Peso for each US dollar. Following the fall in oil prices, the Colombian Peso depreciated to 2,741 Colombian Peso for 08 Republic of Colombia

21 a US dollar in 2015 and 2,958 in September The weak Peso has led to inflation in the country and in 2015, the inflation rate was more than double of what Colombia s Central Bank had predicted at the beginning of the year. In August 2016, the inflation rate had reached 8.1 percent, much higher than the targeted band of 2 4 percent. Improvement in security conditions has promoted investments into Colombia, mostly in the mining and energy sectors. Foreign Direct Investment (net inflows) increased between 2011 and 2014 before falling in In the first quarter of 2016, some $ 4.3 billion in FDI flowed into Colombia, up 159.2% for the same period in the previous year. However, a decreasing trend in the GDP growth rate, inflation and falling government revenues caused major rating agencies to downgrade Colombia s long-term outlook from stable to negative in early The table below shows some key indicators and their trends over the years Population, total (millions) Population growth (annual %) GNI, Atlas method (current US $ billions) GNI per capita, Atlas method (current US$) GDP (current US $ billions) GDP growth (annual %) Exports of goods and services (% of GDP) Imports of goods and services (% of GDP) Foreign direct investment, net inflows (BoP, current US $ billions) Official exchange rate (LCU per US $, period average) 1, , , , , , Table 1: Key Economic Indicators Population, total Millions Figure 1: Population of Colombia Republic of Colombia 09

22 GDP (current US $) US $ Billions Figure 2: GDP of Colombia, Republic of Colombia

23 Official exchange rate (LCU per US $, period average) 3000 Colombian Peso per US $ , , , , , , Figure 5: Official Exchange Rate (LCU) Per US dollar, EXPORTS AND IMPORTS AS A PERCENTAGE OF GDP Exports of goods and services (% of GDP) Imports of goods and services (% of GDP) Figure 6: Exports and Imports as a percentage of GDP Republic of Colombia 11

24 Colombia s Main Industries: In the past, Colombia s economy was mainly dependent on gold mining. However, the economy now is much broader: manufacturing and agriculture alongside mining are important sectors of the economy. In 2015, Colombia s GDP mainly consisted of the service sector which contributed 59.19% to the GDP. Meanwhile, industry and agriculture contributed 33.98% and 6.83% respectively to total GDP. GDP of Colombia as percentages of Sector Composition, Agriculture, value added (% of GDP) Services, etc., value added (% of GDP) Industry, value added (% of GDP) Figure 7: GDP of Colombia as a percent of Sector Composition, 2015 Natural Resources: With a GDP of about $ 292 billion in 2015, and having abundant natural resources, Colombia is an attractive place for investment. Colombia is rich in minerals, including coal, natural gas, petroleum, iron ore, nickel, gold, copper, emeralds and platinum. Ferronickel reserves are located along the San Jorge River and new fields of petroleum reserves were opened in the Llanos and in Amazonia in the late 20th century. Colombia is the largest producer of coal in South America and is the world s fourth largest coal exporter. The country is also Latin America s fourth largest oil producer. Oil replaced coffee as the leading export in In 2015, Mineral fuels, mineral oils and products of their distillation was Colombia s major export to the world. Colombia is second to Brazil in hydroelectric power. Agriculture: Since 1945, share of agriculture in GDP has fallen consistently. Nevertheless, the sector has remained an important source of employment with one-fifth of jobs in 2006 being in the agriculture sector. During the first nine months of 2015 the contribution of agriculture to the 12 Republic of Colombia

25 GDP was 2.9%, indicating an increase of 0.1% compared to the same period in 2014 (2.8%). Colombia enjoys a varied climate which allows for a wide variety of crops, including both tropical and temperate-zone crops, to be grown in the country. Bananas, sugarcane, wheat, barley, potatoes, coconut, rice and cotton are some of the crops that are grown in Colombia. Beans, grains, flowers, and temperate-zone fruit and vegetables are also grown in the lower altitudes. Irrigation and chemical fertilizers are widely used whereas traditional methods are mostly employed in remote areas. Before being overshadowed by oil exports in the late 20th century, coffee was the backbone of the Colombian economy. Share of coffee in total exports ranged between 40 65% of total exports in the period In 1997, coffee s share had dropped to 21%, and by 2000, it was only 8%. A fall in coffee prices in 2001 further reduced coffee s share to 6.2%. Colombia also has a vibrant livestock industry. During 2015, exports of livestock products reached $ 114 million. Major destinations for livestock exports in 2015 were Lebanon, Russia and the United States. Implementation of good agricultural practices along with sanitary programs and improvements in food safety conditions has triggered this boom in the livestock sector. Industry: Colombia s industrial sector mostly developed after World War I. In 2015, industry contributed 33.9 percent to GDP. Colombia has many extraction and processing industries to cater to the vast natural resources that the country is home to. Colombia is the third largest automobile manufacturer in Latin America and also the second largest motorcycle producer in the region. The automotive sector contributed four percent to the country s GDP and accounted for 25,000 jobs in Many international auto manufacturers including General Motors (Chevrolet, Isuzu, and Volvo) and Daimler s subsidiary Daimler Colombia are operating in the country. Another important industry in Colombia is the textile industry which employs the largest share of workers. Apart from fulfilling the needs of domestic industry, the country also exports yarn and fabric. Along with the textile industry, food processing and chemical production are also important industries. Due to expansion of mass grocery retailers and improved cold storage facilities, Colombia has become an important market for value-added and packaged food products. Other important industries include construction, electronics and domestic appliances, transportation and electric power and renewable energy. Trade in Services: The charts below show Colombian economy s composition by major services. Exports and imports of services have been divided into four categories which are transport, travel, other commercial activities and goods-related services. Transport covers sea, air and land as well as the movement of goods (freight), rentals of carriers and related supporting services. Travel covers goods and services acquired by Republic of Colombia 13

26 a traveller while in a foreign country. Other commercial services include construction, insurance and pension services. Telecommunications and information services are also part of this category. Goods-related services are manufacturing services on physical inputs owned by others and maintenance and repair services not included elsewhere. In 2015, travel was the most important service exported by Colombia, comprising 59.4% of total services that were exported. This was followed by transport (22.3%), other commercial services (18%) and goods-related services (0.3%) Breakup of economy's total exports, 2015 (by main services item) Transport Travel Other commercial services Goods-related services Figure 8: Breakup of Total Exports-Services, 2015 Similar to the export trend, travel, with 39%, was the most important service that was imported by Colombia in This was closely followed by other commercial services at 38%. Transport amounted to 22.9% whereas goods-related services were just 0.1% of the total services imported in Breakup of economy's total imports, 2015 (by main services item) Transport Travel Other commercial services Goods-related services Figure 9: Breakup of Total Imports-Services, Republic of Colombia

27 Foreign Direct Investment: Reforms introduced by the Santos administration coupled with an improvement in the security situation had helped upgrade Colombia s government debt to investment grade in 2013 and This attracted fresh investment, mostly in the hydrocarbon sector. The ratification of the US-Colombia Free Trade Agreement and the establishment of free trade zones also helped attract investment into the country. However, in early 2016, due to the falling crude prices, Standard and Poor downgraded its long-term outlook for Colombia from stable to negative. Fitch Ratings, a global leader in credit ratings, also downgraded the ratings of Bancolombia, the largest commercial bank in Colombia and one of the largest banks in Latin America. Bogota, Colombia s capital city, has received $ billion in FDI in the last ten years mainly in the financial services and communication sector. However, fall in government revenues, rise in the costs of raw materials and a decline in oil prices has led to a fall in FDI. Economic slowdown has led to many multinationals terminating operations in Colombia including Apex Tool Group Colombia, PayPal, and banks such as Lloyds TSB Bank and Banistmo. Republic of Colombia 15

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29 Section 2 Trade

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31 Trade Overview: With a trade-per-capita of $ 1,339 for the period , Colombia ranked 56 in exports and 47 in imports in the world. Trade as a sum of exports and imports of goods and services measured as a percentage of GDP was 38.5% in Trade Balance: The figure below shows Colombia s trade balance for the last ten years. From , Colombia s imports and exports followed a similar pattern before exports declined in Colombia s exports to the world fell from $ 58.8 billion in 2013 to $ 35.7 billion in Imports also declined, but only by $ 5.3 billion between 2013 and As a result of this decline in Colombia s exports to the world, the trade deficit which was $ 1.77 billion in 2006, increased to $ billion in Colombia's Trade Balance US $ BILLIONS Trade Balance Imports Exports Figure 10: Colombia's Trade Balance The chart below shows the composition of Colombia s total imports by main commodity groups in Manufactures at 76.5% constituted the top commodity group in that year. Manufactures imports comprised of iron and steel, chemicals, machinery and transport equipment and textiles and clothing. Agricultural products consisting of food and raw materials amounted to 11.1% whereas fuels and mining products including ores and other minerals, fuels and non-ferrous metals were also 11.1% in Republic of Colombia 19

32 The chart below shows the breakup by the main commodity group of Colombia s exports. Fuels and mining products (54.1%) is Colombia s top export group. It is followed by manufactures (23.4%) and agricultural products (19.4%) 20 Republic of Colombia

33 Major Trading Partners: Imports: Colombia s top import partners are the United States of America ($ 15.6 billion), China ($ 10.3 billion) and Mexico ($ 3.85 billion). Colombia s imports from USA are significantly greater than those from other countries. Colombia s Top 10 Origin of Imports *All Values in USD Billion United States of America China Mexico Germany Brazil France Japan India Korea, Republic of Peru Table 2: Colombia s Top 10 Origin of Imports Colombia's Top 5 Origin of Imports United States of America China Mexico Germany Brazil US $ BILLIONS Figure 13: Colombia's Top 5 Origin of Imports Republic of Colombia 21

34 Exports: United States of America followed by Panama and China are Colombia s top export partners. Similar to Colombia s imports from the USA, Colombia s exports to USA are significantly greater than its exports to other countries. Exports to USA significantly declined from $ 22.2 billion in 2012 to $ billion in This decline can mainly be attributed to a decline in export of Petroleum oils and oils obtained from bituminous minerals, crude which declined from $ 13.8 billion in 2012 to $ 4.3 billion in Colombia s Top 10 Export Partners *All Values in USD Billion United States of America Panama China Spain Netherlands Ecuador Brazil Peru Venezuela, Bolivarian Republic of Mexico Table 3: Colombia s Top 10 Export Partners 25 Colombia's Top 5 Export Partners United States of America Panama China Spain Netherlands US $ BILLIONS Figure 14: Colombia's Top 5 Export Partners 22 Republic of Colombia

35 Major Imports: The table below shows Colombia s top imports from the world at HS-02 level. Machinery, electrical machinery and equipment, and mineral fuels are Colombia s top imports at HS-02 level. At HS-06 level, Colombia s top imports consist of Medium oils and preparations ($ 2.63 billion), Light oils and preparations, of petroleum or bituminous minerals ($ 2.46 billion) and Aeroplanes and other powered aircraft ($ 2.03 billion). *All Values in USD Billion Colombia s Top Imports at HS-02 Level Code Product label Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes Vehicles other than railway or tramway rolling stock, and parts and accessories thereof Aircraft, spacecraft, and parts thereof Plastics and articles thereof Pharmaceutical products Organic chemicals Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof 10 Cereals Iron and steel Miscellaneous chemical products Rubber and articles thereof Articles of iron or steel Fertilisers Table 4: Colombia s Top Imports at HS-02 Level Republic of Colombia 23

36 Imports at HS-06: Colombia s Top Imports at HS-06 Level *All Values in USD Billion Code Product label Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, n.e.s Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. losses" distil at 210 C "ASTM D 86 method" (excluding containing biodiesel) Aeroplanes and other powered aircraft of an of an unladen weight > kg (excluding helicopters and dirigibles) Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with spark-ignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ Telephones for cellular networks "mobile telephones" or for other wireless networks Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, put up in measured doses Maize (excluding seed for sowing) Data-processing machines, automatic, portable, weighing <= 10 kg, consisting of at least a central processing unit, a keyboard and a display Commodities not elsewhere specified Machines for the reception, conversion and transmission or regeneration of voice, images or other data, incl. switching and routing apparatus Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil Antisera and other blood fractions and immunological products Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with spark-ignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ Wheat and meslin Reception apparatus for television, colour, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus Table 5: Colombia s Top Imports at HS-06 Level 24 Republic of Colombia

37 Major Exports: The table below shows Colombia s top exports to the world at HS-02 Level. Mineral fuels, Coffee, tea, mate and spices and Plastics and articles thereof are Colombia s top three exports to the world. At HS-06 level, petroleum oils and oils obtained from Bituminous minerals ($ billion), Bituminous coal ($ 4.26 billion) and Coffee, excluding roasted and decaffeinated ($ 2.53 billion) were Colombia s top exports to the world in *All Values in USD Billion Colombia s Top Exports at HS-02 Level Code Product label Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes Coffee, tea, mate and spices Plastics and articles thereof Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin 06 Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage Edible fruit and nuts; peel of citrus fruit or melons Sugars and sugar confectionery Miscellaneous chemical products Pharmaceutical products Vehicles other than railway or tramway rolling stock, and parts and accessories thereof Iron and steel Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes Table 6: Colombia s Top Exports at HS-02 Level Republic of Colombia 25

38 Exports at HS-06 Level: Colombia s Top Exports at HS-06 Level *All Values in USD Billion Code Product label Petroleum oils and oils obtained from bituminous minerals, crude Bituminous coal, whether or not pulverised, nonagglomerated Coffee (excluding roasted and decaffeinated) Gold, incl. gold plated with platinum, unwrought, for non-monetary purposes (excluding gold in powder form) Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, n.e.s Fresh or dried bananas (excluding plantains) Fresh cut flowers and buds, of a kind suitable for bouquets or for ornamental purposes (excluding roses, carnations, orchids, chrysanthemums and lilies) Ferro-nickel Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. losses" distil at 210 C "ASTM D 86 method" (excluding containing biodiesel) Fresh cut roses and buds, of a kind suitable for bouquets or for ornamental purposes Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with spark-ignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale Cane or beet sugar and chemically pure sucrose, in solid form (excluding cane and beet sugar containing added flavouring or colouring and raw sugar) Polypropylene, in primary forms Table 7: Colombia s Top Exports at HS-06 Level 26 Republic of Colombia

39 Section 3 Regional Trade Trends Republic of Colombia 27

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41 Colombia s Regional Trade: Colombia s Trade with Latin America and the Caribbean: Latin America and the Caribbean consist of countries and dependencies between Mexico and the southern tip of South America. The region s economy is forecast to grow at 1.8 percent in 2017 and continue to expand in Colombia is the third largest country in the region in terms of population and the fifth largest country when area is considered. The figure below shows Colombia s trade with Latin America and the Caribbean over the last ten years. The country had a trade surplus in eight out of the last ten years. In 2015, Colombia s exports to Latin America and the Caribbean amounted to $ billion whereas imports amounted to $ billion resulting in a favourable balance of $ 0.96 billion. 20 Colombia's Trade with Latin America Trade Balance Imports Exports 15 US $ BILLIONS Figure 15: Colombia's Trade with Latin America & the Caribbean Republic of Colombia 29

42 Major Origin of Colombian Imports from Latin America and the Caribbean: The table below shows the list of supplying markets from Latin America and the Caribbean for goods that are imported by Colombia. Mexico, Brazil and Peru were Colombia s top import partners in Colombia s imports from all partners in Latin America and the Caribbean declined between 2014 and List of supplying markets from Latin America and the Caribbean for products imported by Colombia *All Values in USD Billion Mexico Brazil Peru Colombia Ecuador Chile Argentina Bolivia, Plurinational State of Venezuela, Bolivarian Republic of Trinidad and Tobago Table 8: Top Sources of Imports from Latin America & the Caribbean Major Export destinations in Latin America and the Caribbean: In the region, Colombia s top export partners comprise of Panama, Ecuador and Brazil with export values of $ 2.39 billion, $ 1.43 billion and $ 1.19 billion respectively. Except for exports to Mexico and Bahamas, exports to all other countries declined between 2013 and List of importing markets in Latin America and the Caribbean for products exported by Colombia *All Values in USD Billion Panama Ecuador Brazil Peru Venezuela, Bolivarian Republic of Mexico Aruba Chile Bahamas Dominican Republic Table 9: Top Export Destinations in Latin America & the Caribbean 30 Republic of Colombia

43 Major Imports from Latin America and the Caribbean: In 2015, import value for the top fifteen products amounted to $ 3.84 billion or 34% of total imports from Latin America and the Caribbean. Colombia s major imports from Latin America at HS-06 level consist of motor cars and other motor vehicles principally designed for the transport of persons, light oils and preparations, of petroleum or bituminous minerals and reception apparatus for television. *All Values in USD Million Product code Colombia s imports from Latin America and the Caribbean Product label Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with sparkignition internal combustion reciprocating ,116 1,101 1,053 1, piston engine of a cylinder capacity > cm³ but <= cm³ Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. losses" distil at 210 C "ASTM D 86 method" Reception apparatus for television, colour, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus, designed to incorporate a video display or screen Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with sparkignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ Motor vehicles for the transport of goods, with compression-ignition internal combustion piston engine "diesel or semi-diesel engine" of a gross vehicle weight <= 5 t Crude soya-bean oil, whether or not degummed Wire of refined copper, with a maximum crosssectional dimension of > 6 mm Bars and rods, of iron or non-alloy steel, with indentations, ribs, groves or other deformations produced during the rolling process Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil Propene "propylene" Food preparations, n.e.s Data-processing machines, automatic, presented in the form of systems "comprising at least a central processing unit, one input unit and one output unit" Republic of Colombia 31

44 *All Values in USD Million Product code Colombia s imports from Latin America and the Caribbean Product label Mixtures of odoriferous substances and mixtures, incl. alcoholic solutions, with a basis of one or more of these substances, of a kind used in the food and drink industries; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages Polyethylene terephthalate", in primary forms Table 10: Colombia s Top Imports from Latin America & the Caribbean Major Exports to Latin America and the Caribbean: Colombia s top fifteen exports to Latin America and the Caribbean at HS-06 level amounted to $ 6.95 billion or 57% of total exports to Latin American and the Caribbean countries. Petroleum oils and oils obtained from bituminous minerals was the top export to Latin America with an export value of $ 3.82 billion in It was followed by bituminous coal ($ 716 million) and motor cars and other motor vehicles principally designed for the transport of persons ($ 286 million). *All Values in USD Million Product code Colombia s exports to Latin America and the Caribbean Product label Petroleum oils and oils obtained from bituminous minerals, crude 1,490 5,871 5,451 4,509 5,033 3, Bituminous coal, whether or not pulverised, non-agglomerated , ,029 1, Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with sparkignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale Poly"vinyl chloride", in primary forms, not mixed with any other substances Insecticides (excluding goods of subheading ) Polypropylene, in primary forms Cane or beet sugar and chemically pure sucrose, in solid form Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, n.e.s Sugar confectionery not containing cocoa, incl. white chocolate (excluding chewing gum) Republic of Colombia

45 Colombia s exports to Latin America and the Caribbean *All Values in USD Million Product code Product label Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. losses" distil at 210 C "ASTM D method" Sanitary towels (pads) and tampons, napkins and napkin liners for babies, and similar articles, of any material Fungicides Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium (excluding those in tablets or similar forms, or in packages with a gross weight of <= 10 kg) Table 11: Colombia s Top Exports to Latin America & the Caribbean Republic of Colombia 33

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47 Section 3 Regional Trade Trends Republic of Colombia 35

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49 Colombia s Trade Alliances: Colombia joined the World Trade Organization on 30th April 1995 and had previously been a member of GATT since 3rd October Colombia has also signed a preferential trade agreement with 21 countries known as the Global System of Trade Preferences among Developing Countries (GSTP). Colombia is a member of many different economic alliances including Latin American Integration Association (ALADI/LAIA), Union of South American Nations (UNASUR), The Community of Latin American and Caribbean States (CELAC) and the Inter-American Development Bank (BID). Colombia is a founding member of the Pacific Alliance, a regional trade bloc, and is also part of the Andean Community (CAN). In 2013, Colombia began its accession process to the OECD. Colombia has signed Free Trade Agreements with Canada, Chile, Mexico, Costa Rica, United States of America and the Republic of Korea. The country has also signed free trade agreements with Israel and Panama but they are yet to be enforced. The country signed a free trade agreement with the European Free Trade Association (EFTA), a regional trade organization and free trade area in Additionally, Colombia also enjoys a Free Trade Agreement and Economic Integration Agreement with the European Union. Colombia is also a beneficiary of the following Preferential Trade Agreements: Name Sub-schemes Provider(s) Initial Entry into Force Generalized System of Preferences - Australia 1 Australia 1/1/1974 Generalized System of Preferences - Japan 1 Japan 8/1/1971 Generalized System of Preferences - Kazakhstan 1 Kazakhstan 1/1/2010 Generalized System of Preferences - New Zealand 1 New Zealand 1/1/1972 Generalized System of Preferences - Russian Federation 1 Russian Federation 1/1/2010 Generalized System of Preferences - Turkey 2 Turkey 1/1/2002 Table 12: Colombia s Preferential Trade Agreements Republic of Colombia 37

50 Latin America Integration Association (ALADI/LAIA): The Latin America Integration Association was formed in 1980 to replace the Latin American Free Trade Association (LAFTA). Comprising of 13 members, including Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela, the association aims to stimulate economic activity based on tariff preferences and minimal nontariff barriers. About 70 percent of all trade amongst the member states is exempt from tariffs and it is expected that by 2019, due to ALADI agreements, South America would become a free trade zone. The figure below shows Colombia s trade with member ALADI countries over the years. From 2009 to 2015, imports from other ALADI countries have been greater than the country s exports to partner countries within the ALADI. In the last ten years, Colombia has enjoyed a trade surplus with ALADI only in 2008, when the trade surplus was $ 0.92 billion. 20 Colombia's Trade with ALADI/LAIA Trade Balance Imports Exports 15 US $ BILLIONS Figure 16: Colombia's Trade with ALADI/LAIA The table below shows Colombia s top import partners within ALADI. Mexico, Brazil and Peru are top supplying markets from ALADI for goods imported by Colombia. Imports from Mexico and Brazil declined between 2014 and Republic of Colombia

51 List of supplying markets from Latin American Integration Association (ALADI/LAIA) for products imported by Colombia *All Values in USD Billion Latin American Integration Association (LAIA) Aggregation Mexico Brazil Peru Colombia Ecuador Table 13: Top Sources of Imports from ALADI/LAIA Panama, Ecuador and Brazil are top destinations in ALADI for Colombian goods. Exports to LAIA declined gradually from 2012 to Similarly, exports to the top five markets declined from 2014 to List of importing markets from Latin American Integration Association (ALADI/LAIA) for products exported by Colombia *All Values in USD Billion Latin American Integration Association (LAIA) Aggregation Panama Ecuador Brazil Peru Venezuela, Bolivarian Republic of Table 14: Top Export Destinations in ALADI/LAIA Table below shows Colombia s top fifteen imports from Latin America Integration Association (ALADI/LAIA) at HS-06 level. Motor cars and other motor vehicles principally designed for the transport of persons with an import value of $ 993 million was the top import in Reception apparatus for television at $ 405 million and light oils and preparations, of petroleum or bituminous minerals at $ 329 million ranked second and third in Colombia s imports from ALADI. *All Values in USD Million Colombia s imports from Latin American Integration Association (ALADI/LAIA) Product code Product label Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with sparkignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ ,115 1,101 1,053 1, Republic of Colombia 39

52 *All Values in USD Million Product code Colombia s imports from Latin American Integration Association (ALADI/LAIA) Product label Reception apparatus for television, colour, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus, designed to incorporate a video display or screen Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. losses" distil at 210 C "ASTM D method" Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with sparkignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ Motor vehicles for the transport of goods, with compression-ignition internal combustion piston engine "diesel or semi-diesel engine" of a gross vehicle weight <= 5 t Crude soya-bean oil, whether or not degummed Wire of refined copper, with a maximum crosssectional dimension of > 6 mm Bars and rods, of iron or non-alloy steel, with indentations, ribs, groves or other deformations produced during the rolling process Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil Propene "propylene" Data-processing machines, automatic, presented in the form of systems "comprising at least a central processing unit, one input unit and one output unit" Food preparations, n.e.s Polyethylene terephthalate", in primary forms New pneumatic tyres, of rubber, of a kind used for buses and lorries Table 15: Colombia s Top Imports from ALADI/LAIA In 2015, Petroleum oils and oils obtained from bituminous minerals ($ 2.14 billion) was Colombia s top export to ALADI. Bituminous coal ($ 643 million) and motor cars and other motor vehicles principally designed for the transport of persons ($ 283 million) were other top exports to ALADI. 40 Republic of Colombia

53 *All Values in USD Million Product code Colombia s exports to Latin American Integration Association (ALADI/LAIA) Product label Petroleum oils and oils obtained from bituminous minerals, crude ,935 4,021 3,407 3,482 2, Bituminous coal, whether or not pulverised, non-agglomerated Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars, with sparkignition internal combustion reciprocating piston engine of a cylinder capacity > cm³ but <= cm³ Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale Poly"vinyl chloride", in primary forms, not mixed with any other substances Insecticides (excluding goods of subheading ) Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon Polypropylene, in primary forms Cane or beet sugar and chemically pure sucrose, in solid form (excluding cane and beet sugar containing added flavouring or colouring and raw sugar) Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. losses" distil at 210 C "ASTM D method" (excluding containing biodiesel) Sanitary towels (pads) and tampons, napkins and napkin liners for babies, and similar articles, of any material Sugar confectionery not containing cocoa, incl. white chocolate (excluding chewing gum) Fungicides (excluding goods of subheading ) Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium Natural gas in gaseous state Table 16: Colombia s Top Exports to ALADI/LAIA Republic of Colombia 41

54 Andean Community (CAN): Bolivia, Colombia, Chile, Ecuador and Peru signed the Cartagena Agreement in 1969 to form the Andean Pact. In 1993, the Andean countries eliminated tariffs and formed a free trade zone and in 1997, the Andean Community was created to replace the Andean Pact. Facilitating integration and stimulating industrial and trade cooperation, are the two main aims of Andean Community. Venezuela which had joined in 1973 withdrew its membership in 2006 and Chile withdrew in The table below shows Colombia s trade with member states of the Andean Community. Colombia s imports from the Andean Community increased significantly in 2011 when they reached a value of $ 3.55 billion from $ 1.89 billion in However, imports declined to $ 2.99 billion in On the other hand, exports to Andean Community increased significantly in 2010 ($ 3.06 billion) and after reaching a peak value of $ 3.61 billion in 2012, declined to $ 2.73 billion in Colombia's Trade with the Andean Community Trade Balance Imports Exports US $ BILLIONS Figure 17: Colombia's Trade with the Andean Community Table below shows Colombia s import partners from the Andean Community. Peru followed by Colombia and Ecuador are the top three countries that supply imports to Colombia. Trade between Colombia and Colombia can be explained by re-import activity. Imports from all countries declined between 2014 and Republic of Colombia