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Business Opportunities in Colombia

Business Opportunities in Colombia. Larry Farris Commercial Counselor US Embassy, Bogotá May 2006. Colombia. Land mass - 440,000 square miles GDP per capita of $2,574 ($6,100 in Bogotá) Population 46 million (90% under 50 years old) 71% urbanized. 2005 GDP US$ 118.1 Billion

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Business Opportunities in Colombia

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  1. Business Opportunities in Colombia Larry Farris Commercial Counselor US Embassy, Bogotá May 2006

  2. Colombia • Land mass - 440,000 square miles • GDP per capita of $2,574 ($6,100 in Bogotá) • Population 46 million (90% under 50 years old) • 71% urbanized

  3. 2005 GDP US$ 118.1 Billion Growth estimated at 4.3%, US$ 2,574 per capita Manufacturing 14.2% agriculture 13.5% financial services 17.2% Commerce 11.4% Transportation/communications services 8.2% mining and quarrying 4.8% construction and public works 5.3% government, personal and other services 19.5% electricity, gas, and water 3.0%. Colombian Economy

  4. Consistent Economic Growth • Colombia has registered nearly 70 years of consistant economic growth. • Lowest inflation volatility in Latin America (6.5%). • Successfully weathered economic shocks that affected other Latin American economies. • Steady economic growth at about 4.0%.

  5. US Trade with Colombia $US Billions • Total US-Colombian trade in 2005 was $13.7 billion. • Colombia ranks #31 trade partner with US. • 4th largest market for US goods in Latin America (after Brazil, Mexico, Venezuela). • 56% US imports from Colombia are in hydrocarbons sector • Primary US exports – industrial machinery, chemicals, grains, transportation equipment. • Primary Colombian exports to US – hydrocarbon prods., gem stones, coffee, cut flowers, clothing, fruits.

  6. US Investment in Colombia • Colombia #6 destination of US FDI in Latin America (after Brazil, Mexico, Argentina, Chile and Venezuela). • Total US FDI in Colombia $6.5 billion (28%). • Jan-Aug ’05 $ 1.9 billion in new US investment in Colombia, 42% above previous year. • Colombia lifted remittance controls, national treatment, eased prior approval requirements. • Recent increases in European share of FDI.

  7. Major US Multinationalsin Colombia Company NameAmount Invested (In millions) • Exxon Mobil 1,333 • Chevron Texaco 717 • Drummond (Coal) 518 • General Motors 497 • Colgate Palmolive 289 • Citibank 272 • Hewlett Packard 258 • Coca Cola 248 • Liberty Insurance 239 • Occidental Petroleum 213 • Smurfit-Stone Containers 199

  8. Political Stability • Congressional Elections March 12 • Strengthened Congressional support for President Uribe • Continuity, support for reforms • Presidential Elections May 28 • Uribe running for second 4 year term • If needed, second round June 18

  9. Security • Greatly improved, but still serious issues • 2005 homicide rates lowest in 18 years • Kidnappings down by 40% in last 4 years • Paramilitary demobilizations nearly complete • Attacks on infrastructure on downward trend

  10. US-Colombia TPA • 14 rounds, 22 months of negotiations • Good deal for both sides • US market access, APDEA continuity • All products (except sugar) to reach zero tariff in no more than 19 years, most immediately • Services, IPR, Government Procurement

  11. Opportunities for Colorado Companies • Oil & Gas. • Emphasis on new exploration and production, offshore. • $3 billion refinery expansion/modernization and Petrochemical Projects. $1.4 billion Ecopetrol investments for 2006 (up 56% from 2005). • Colombia-Venezuela Gas Pipeline Project. • Natural gas market development. • Energy. • Thermal (33%) to supplement hydro (67%) • Renewables, wind power projects.

  12. Opportunities • Safety and Security • Residential and commercial alarm systems • Biometrics • Transportation and logistics security • Food Processing and Packaging Equipment • Rapidly expanding export market is driving need for state-of-the-art food processing equipment • Telecommunications • Broadband technologies, services and equipment

  13. Opportunities • Healthcare Services and Medical Equipment • Hospital upgrades • Preventative care & early diagnosis • Business and other Services • Legal, real estate, franchising • Processed Foods • Cotton/yarns • Wheat/corn/soy/oilseeds For detailed information on all “Best Prospects” Sectors, go to: http://www.buyusa.gov/colombia/en/best_prospects.html

  14. Upcoming Events • May 15-17 US-Colombia Matchmaker • June 27-28 Transportation Mission • August 3-5 Logistics Exhibition and Conference • Sept 24-27 Oil & Gas Symposium • Oct 3-6 Bogotá Industrial Fair • Oct 25-27 Andiacom Exhibition and Conference • Dec 3-5 Oil & Gas Investment Conference

  15. Useful Links www.export.gov www.buyusa.gov/colombia/en www.proexport.com.co www.amchamcolombia.com.co www.ceacolombia.com www.presidencia.gov.co

  16. US Commercial Service Bogotá Unit 5120 APO AA 34038 Tel: (571) 383-2684 Fax: (571) 315-2171 www.buyusa.gov/colombia Larry Farris, Commercial Counselor larry.farris@mail.doc.gov Geoffrey Bogart, Commercial Attaché geoffrey.bogart@mail.doc.gov Contact Us

  17. Join the Crowd

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