The Free Trade Agreement (FTA) between Colombia and the United States has allowed the consolidation of a favorable economic
scenario for business between the two countries since 2012, which entered into force.
In fact, currently the non-mining exportable offer from Colombia to the USA has diversified. At the same time that the investments of the American country in Colombia have been an important source of employment for the citizens of that country.
According to data from the Bank of the Republic, between 2012 and 2018, US investments in Colombia have been US $ 16,391.1 million, an amount that represents 16.6% of the total foreign investment that Colombia received in that period of time.
Also, since 2012 there have been more than 200 US companies that have made investments in Colombia; The majority of these investments correspond to the software and IT services industry, financial services and consumer companies. In addition, approximately 450 US companies installed in Colombian territory are registered.
Within these US companies, General Motors stands out, with its investments in 2018 to optimize the assembly processes of Colmotores; On the other hand, Equinox with its investments in 2018 to develop one of the largest data centers in Colombia and Amazon that opened a service center in Colombia in the same year.
Since 2012, other US companies that are worth mentioning for their outstanding investments have been Sheraton, Pricesmart, Startbucks, Hewlett-Packard (HP) or Procter & Gamble (P&G).
The share of non-mining exports increased
The Free Trade Agreement between these two countries allowed new Colombian products to reach the United States.
In 2018, the USA had a 25.4% participation in exports made by Colombia; which represents US $ 10,640.8 million of the US $ 41,838.3 million that the Latin country sold in total to the whole world.
The Free Trade Agreement has put on the table conditions that the US has taken advantage of; because in view of greater productivity and competitiveness in Colombian companies, the United States has been able to increase the import of fruits such as lemon, cape gooseberry and avocado by about 1,000%, which has managed to supply the demand for these foods in his territory.
Likewise, the products that were sold the most from Colombia to the USA since the FTA was approved, after fuels, precious stones and minerals, were those related to the agricultural sector such as:
- The flowers registering US $ 7,343.2 million.
- Coffee and its derivatives that between 2012 and 2018 registered US $ 7,058.8 million in exports.
- Fruits were exported US $ 1,390.7 million.
- Tilapia exports from Colombia to the US That went from exporting USD $ 20.1 million in 2012, to USD $ 50.1 million for 2018, making a difference of 149.57%.
Without a doubt, agriculture is the sector with the most participation in Colombian foreign trade with the United States. Since, by 2018, 67% of registered exports, not energy mining from Colombia to the USA, correspond to agriculture. In fact, of the 10 most non-mining products exported by Colombia to the US. UU, 9 of them correspond to this sector.
On the other hand, it is important to note that the aluminum sector was also very favored with the FTA. Since, between 2012 and 2018 the sale of materials from this sector of Colombia to the USA increased by 296.13%. From exporting US $ 52.2 million in 2012 to US $ 196.7 million in 2018.
Undoubtedly, the Free Trade Agreement between Colombia and the United States that entered into force in 2012, has achieved its main objective of promoting trade between the two nations.
Only after 7 years, it is possible to appreciate this great advance and an avalanche of opportunities for American investors who wish to participate in this commercial exchange and take out a good part of the profits generated by this market.
Based on such good results we can affirm that the future of trade between these two countries is very promising and does not intend to stop soon.
We also want to invite you to read: Increase your business sales through the good use of information.
You can expand this information and use it for your business strategies
In The Trade Data we are a truthful and updated information platform on foreign trade in Latin American countries. We aim to be a reliable source of information for US companies and investors, who are interested in participating or undertaking business in different sectors of the Latin American economy.
You can receive all the information you need about the economic behavior of the sector and country of your interest, through a simple procedure and with a small investment.
All you have to do is enter our website and place a tariff position, name of the product or market of your interest in the search engine and in a few seconds you will have access to a comprehensive report that will allow you to identify your opportunities in the market, create strategies , evaluate investment options, etc.
Request your report now!
To find out more about how we can help, email firstname.lastname@example.org and we’ll get back to you with a personalized strategy unique to your business and your Latin American expansion goals.