# Presentation: 257752

## 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**

## Colombian Economy

**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%.**** **

## 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%.**

## US Trade with Colombia

**Total US-Colombian trade in 2005 was $13.7 billion.**
**Colombia ranks #31 trade partner with US.**
**4****th**** 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.**

- $US Billions

## 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.

## Major US Multinationalsin Colombia

_**Company Name**_**	****	****	**_**Amount 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**

## 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

## 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

## 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

## 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.**

## 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**

## 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**

## 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

## 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_

## Contact Us

**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_

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