Chinese Trade & Investment in Latin America: Perspective from Colombia RICARDO DUARTE DUARTE Chairman of the Board of Directors China Colombia Chamber of Commerce & Partner of Duarte Garcia Abogados (DG&A) Inter-American Dialogue Washington, DC September 21, 2012
Agenda 1. Bilateral Relationship 2. Trade & Investment 3. Conclusions 4. Q&A
Bilateral Relationship a)32 years of diplomatic ties (7 Feb 80) Colombia adheres to the one-china policy b)china: foreign Policy priority c)china: 2nd largest trading partner since 2010 d)economies are highly complementary and have great potentials for further cooperation e)bit in force since July 2012 f)less than 40 Chinese companies based in Colombia g)mutual interest to take relations to a new and higher level
US is No.1 - (US$35.2 bi) China No 2 - (US$9.7 bi) Japan No 15 (US$1.9 bi) India No. 17 ( US$1.7 bi) South Korea No. 22 (US$1.5 bi) Graphs and calculations by US. Embassy Bogotá-Econ Section.
Imports from China, Japan and Korea to Colombia
Graphs and calculations by US. Embassy Bogotá-Econ Section. DG&A
2011: Latam exports to China Colombia was the 7nd largest provider of Latin American goods (US$1.989 million) to China. Together, the Pacific Alliance members exported (US$33,515) Non Pacific Mercosur members exported (US64,069)
Complementary economies
Commodity based exports
TOTAL TRADE
Chinese FDI in Colombia 2000-2011 - China Rank as 37th investor in Colombia
Tourism
No more than 40 chinese companies based in Colombia Some names Company Name in Co PARENT Company SECTOR Mansarovar Energy Colombia Ltda. (former Omimex) Sinopec Corp. - Ongc Videsh (Joint Venture) Hydrocarbons Emerald Energy PLC (Colombia Branch Sinochem Hydrocarbons Office) Huawei Technologies Co. Ltd. Huawei Technologies Co. Ltd. IT Services ZTE Corporation Sucursal Colombia ZTE Corporation IT Services Ample Auto S.A. Ample Auto Transport CAH Colombia S.A. Capital Airports Holding Logistics Company Glormed de Colombia S.A. Glormed International Inc Pharmaceutical Great Dragon Information Technology Great Dragon Information IT Services (GROUP) Co., Ltd Technology Ltd Jincheng de Colombia S.A. - Jincol Jincheng Group Transport
High Level Visits On November 22, 2008, Chinese President Hu Jintao met with his Colombian counterpart Alvaro Uribe in Lima. On May 2012, Chinese President Hu Jintao met with Santos in Beijing Santos meet with senior Chinese leaders Wu Bangguo, Wen Jiabao and Li Keqiang. On February 2009, Chinese Vice President Xi Jinping met with Uribe in Colombia
Hu s Road map to deepen the 4-points relationship with Colombia 1. Strengthen contacts and enhance mutual trust in the political area so as to secure long-term friendship. 2. Tap into the potential of mutually beneficial cooperation and jointly achieve common development in the economic area. 3. Enrich the content of people-to-people exchanges so as to deepen friendship. 4. Strengthen consultation and coordination on international affairs.
May 2012-9 Agreements 1. Economic and Technical Agreement - (US$3 mi donation). 2. Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property 1970 3. MOU Joint Study to explore the feasibility of a FTA 4. MOU - Agricultural Cooperation 5. MOU - Consultations on sanitary and phytosanitary issues 6. MOU - Cooperation promotion in the Mining and Energy sector (Ministry of Mines and CDB) 7. MOU - Integral Development of Magdalena River. (CORMAGDALENA & HYDROCHINA) 8. MOU - Long term strategic Cooperation between Ecopetrol & Sinochem 9. MOU - Collaboration between ECOPETROL, SINOCHEM & CDBel in the Project "Oleoducto del Centro de Colombia".
CONCLUSIONS China and Colombia are good friends and partners with a short history of a growing partnership. Both are just starting to explore new ways of deepening economic cooperation, promote growth of trade and twoway investment and expand cooperation in the fields of infrastructure, energy, mining, water conservation, telecommunications and agriculture. Conditions are set for a new inflection point in the bilateral relationship