RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/172 
18 October 2006  
 
(06-4896) 
Trade Policy Review Body Original: Spanish 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
COLOMBIA 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Colombia is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Colombia. Colombia WT/TPR/G/172 
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CONTENTS 
 
  Page 
I. INTRODUCTION 5 
II. MACROECONOMIC ENVIRONMENT:  CURRENT SITUATION AND OUTLOOK 5 
III. TRADE POLICY:  CURRENT SITUATION AND OUTLOOK 6 
(1) I NTRODUCTION  6 
(2) M ULTILATERAL ENVIRONMENT  7 
(3) R EGIONAL INITIATIVES  8 
(a) Andean Community 8 
(b) Latin American Integration Association 9 (c) Group of Three Free Trade Agreement (G3-FTA) 9 
(d) Andean Community – Southern Common Market 9 
(e) Chile 10 
(f) Central America 10 
(g) Cuba 10 
(h) CARICOM 10 
(i) United States 11 
(j) European Union 11 
(k) European Free Trade Association (EFTA) 11 
IV. INVESTMENT PROMOTION AND PROTECTION POLICY 11 
(1) Europe  12 
(2) Japan  12 
(3) Russia  12 
(4) Canada  12 
 
 
 
   Colombia WT/TPR/G/172 
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COLOMBIA:  MACROECONOMIC, TRADE AND INVESTMENT ENVIRONMENT 
I. INTRODUCTION 
1. Colombia's macroeconomic policy objective is to achieve GDP growth rates of more than 
4 per cent capable of contributing to poverty re duction, while at the same time reducing its fiscal 
deficit and public debt and maintaining inflation in th e 2 to 4 per cent range.  This growth will rely on 
a strengthening of demand, both domestic and external. 
2. The democratic security policy, aimed at e nhancing physical safety, and the investor 
confidence policy, aimed at providing legal st ability, have brought about improvements in the 
investment climate and consumer confidence.  This, in its turn, has boosted domestic demand, 
enabling private investment to become the engi ne of growth over the past few years.  By 
strengthening this policy, it should be possible to maintain the momentum of domestic demand. 
3. In 2002, in order to revitalize external demand, Colombia launched a new stage in the 
internationalization of its economy.  It embarked  on the negotiation of free trade agreements with 
MERCOSUR (in the framework of the Andean Comm unity), with the United States, and with the 
Northern Triangle (El Salvador, Honduras and Guatem ala), and in 2007 it hopes to begin negotiations 
with the European Union. 
4. At the same time, Colombia will continue to  support the multilateral negotiations under the 
WTO in order to realize the gains to be derived from the rules-based system, the genuine opening up of markets for the exportable supply of goods and services in the developed and the developing 
countries, particularly those with a high demand potential. 
5. Trade policy is formulated in strict complian ce with international commitments, such as those 
associated with Colombia's memb ership in the Andean Community (CAN), in the Latin American 
Integration Association (LAIA), and in the WTO. 
II. MACROECONOMIC ENVIRONMENT:  CURRENT SITUATION AND OUTLOOK 
6. In 2006, the main macroeconomic variables pur sued the same trends as in 2005, with a high 
economic growth rate – estimated at 4.5 to 5 pe r cent – sustained by the dynamism of domestic 
demand;  decreasing inflation, in keeping with the ta rget of the Banco de la República (between 4 and 
5 per cent);  and diminishing unemployment in an environment characterized by a stable public sector 
balance. 
7. On the external front, Colombia was not sp ared the tightening of external financing 
conditions for the emerging economies during the second quarter of 2006 with the rise in interest rates 
in the United States and Europe.  Although there ar e signs of normalization in the external capital 
markets, this remains the main factor of uncertainty in the short and medium term. 
8. Thanks to the strengthening of the financial syst em, to generous international reserves, to a 
low deficit in the current account of the balance of  payments, and to the reduction in the share of the 
external debt in GDP, the Colombian economy is c onsiderably less vulnerable to external financing 
shocks.  This, coupled with the a pparent strength in domestic demand, suggests that the economy will 
continue to grow rapidly in th e medium term.  Meanwhile, in 2006 the total external debt as a 
proportion of GDP is expected to remain close to the 2005 level (30.6 per cent). 
9. A consolidated public sector deficit of 1.5 per cent of GDP is expected for 2006, after which 
it is expected to decrease progressively to 0.9 per cent in 2017, in keeping with the target of bringing WT/TPR/G/172 Trade Policy Review 
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the total public debt down to 30 per cent of GDP by that year.  Meanwhile, balance-of-payment 
projections show the total external debt progressively decreasing as a percentage of GDP to approximately 17 per cent in 2017. 
10. The multi-annual macroeconomic programme project s a yearly growth rate of 4 per cent for 
the period 2007 to 2017, somewhat less than the pot ential long-term growth rate, estimated at 4 to 
5 per cent.  This growth will be backed up by an av erage rate of investment of 24 per cent of GDP, of 
which 2.4 per cent of GDP will be foreign investment.  Inflation, for which the intermediate target for 
2006 is 4.5 per cent, will continue to decrease by ha lf a per cent per year to reach 3 per cent as of 
2009. 
11. Domestic demand is expected to settle gradually,  but will continue to grow at rates exceeding 
GDP until 2008, with a consequent increase in the curre nt account deficit of the balance of payments.  
That deficit should begin to decrease in 2009 when the growth rate in domestic demand falls below 
the GDP growth rate bringing the average deficit for the period 2007-2017 to 2.4 per cent of GDP. 
12. Thus, for the period 2007-2017, an average current account deficit of the balance of payments 
of 2.4 per cent of GDP is expected, with the trad e balance deficit averaging 0.7 per cent of GDP.  
During that same period, the share of exports in  GDP will hover around 20.8 per cent, while imports 
are expected, on average, to account for some 21.6 pe r cent of GDP.  Foreign investment will be the 
main source of financing for the current account deficit, and will average 2.4 per cent of GDP. 
13. If this favourable outlook for the Colombian economy is to be sustainable in the long term, it 
must be backed by a number of short-term structural  reforms.  To begin with, a tax reform is needed 
to enhance the competitiveness of the economy through a simple and stable tax structure that provides 
incentives for investment.  Secondly, the general system of sharing the country's current revenue among the territorial entities must be reformed in order to ensure the sustainability of public finances.  
Finally, the financial system will be reformed in order to consolidate its development by introducing 
regulatory changes to reduce the margins of intermed iation, by improving information flows, and by 
strengthening the rights of creditors.  Worth noting in connection with this strategy of improving the 
financial system is the recent creation of the O pportunities Bank to facilitate and promote access by 
the poor in Colombia to financial services a nd micro-credits without undue requirements. 
III. TRADE POLICY:  CURRENT SITUATION AND OUTLOOK 
(1) I
NTRODUCTION  
14. Since its last review, Colombia has stepped up its  negotiating agenda with different countries.  
The objective of the trade negotiations and a corner stone of its economic development policy is to 
open up new markets for Colombian products, ensuri ng preferential and stable long-term access, and 
to improve the supply of imported pr oducts that benefit the consumer. 
15. The Constitution favours the intensification of trade and political relations with the 
international community, in particular with the co untries of Latin America.  This has led to the 
consolidation of the Andean Community (CAN) a nd of the agreement concluded between certain 
member countries of the CAN and MERCOSUR, the extension of the Free Trade Agreement with Mexico in certain areas, the bilateral agreemen t with Chile and the negotiation of the Free Trade 
Agreement with the United States,  the process initiated with the countries of the Northern Triangle
1, 
and the negotiation of partial scope  agreements with Cuba and with the Caribbean Common Market 
(CARICOM) as well as with other countries of Central America. 
                                                      
1 Guatemala, Honduras and El Salvador. Colombia WT/TPR/G/172 
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16. At the same time, the national government is endeavouring to initiate negotiations with the 
European Union (EU) and with the EFTA countries2 in cooperation with the countries of the CAN.  It 
will also be negotiating a Free Trade Agreement w ith Chile as from October.  Meanwhile, it is 
seeking to form a bloc of countries of the Latin American Pacific Basin3 in order to strengthen the 
economic and commercial ties between the countries concerned and improve re lations with certain 
integration organizations of Asia and with member countries of APEC4, a group which Colombia has 
been seeking to join for a decade now, although  the process has been postponed by APEC's 
moratorium on new members.  These initiatives are in line with the policy recommended by the Joint 
Committee on Foreign Trade in 2005.5 
17. The services sector accounts for a considerable share of national production (63 per cent in 
2005).  This figure, coupled with the positive ef fects of foreign trade on economic growth and 
employment, reflects Colombia's determination to improve the access conditions for its services 
providers to different markets through internationa l services negotiations on various fronts:  active 
participation in the WTO negotiations;  deepening of regional integration;  and the free trade 
agreement initiatives. 
(2) MULTILATERAL ENVIRONMENT  
18. Colombia has been participating actively in the ongoing negotiating process, and has 
expressed its commitment to the success of the D oha Development Round.  Given that development 
means better standards of living and trade policy is  an instrument for achieving that objective, 
Colombia sees Doha as an excellent chance to stre ngthen the multilateral trading system and to show 
that it holds out an opportunity for all nations. 
19. Colombia firmly believes that the one real contribution that the Doha Round can make to the 
developing countries is the opening up of markets.  Th is should be accompanied by the elimination of 
disguised trade barriers that prevent countries from taking full advantage of the improved access conditions achieved thro ugh tariff reductions. 
20. This is why Colombia deeply regrets the susp ension of the negotiations and has insisted on 
the need to reflect on how the process can be correct ed in order to remove the stumbling blocks.  It 
has also joined those who consider that all count ries should undertake to assume real commitments in 
all areas of the negotiations, that they should work towards balanced results at the end of the Round, 
and that all members should make a balanced contri bution to ensure that th is Round is a success and 
can truly be called the Development Round. 
21. For Colombia, significant reductions in domestic support and production- and trade-distorting 
subsidies on agricultural products are a priority, it be ing clearly understood that access to markets for 
those products will be the next step following the re form of the domestic s upport pillar, which is the 
most price-distorting at international level. 
                                                     
 
2 European Free Trade Agreement:  Icelan d, Liechtenstein, Norway and Switzerland. 
3 Chile, Colombia, Costa Rica, Ecuador, El Salv ador, Guatemala, Hondur as, Mexico, Nicaragua, 
Panama and Peru. 
4 Asia Pacific Economic Cooperation:  made up of 21 economies:  Japan;  Brunei;  Indonesia;  Korea;  
Malaysia;  Philippines;  Singapore;  Thailand;  China;  Papa New Guinea;  Hong Kong, China;  Chinese Taipei;  
Viet Nam;  Australia;  New Zealand;  United States;  Canada;  Mexico;  Chile;  Peru;  and Russia. 
5 Joint Committee on Foreign Trade, 28 April 2005, Agenda para la Política Comercial de 
Colombia en el Corto Plazo  (Short-Term Trade Policy Agenda of Colombia). WT/TPR/G/172 Trade Policy Review 
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22. In the services area, the intention is to ensure  the further opening up of the sectors in which 
the country has penetrated in the international mark et.  This clearly includes the physical movement 
of Colombians. 
23. Colombia is convinced that a development round essentially boils down to providing export 
opportunities based on the need to compete on an equal footing in the international market.  
Consequently, it particularly welcomes the progress achieved in the area of trade facilitation, undoubtedly a challenge on the road to in tegration in the international market. 
24. Colombia values regional relations in all fiel ds, which is why it led Latin America in the 
WTO on the issue of aid for trade in an effort to ensure that the region was seen as a significant 
recipient of world cooperation, given that (a) it is the region in the world that receives the least aid for 
trade;  (b) most of the Latin American countries ar e in favour of trade liberalization, which is what 
counts when the aid is for trade;  (c) the aid must  promote trade rather than impeding it, with the 
responsibility falling both to the donors and to the recipients. 
(3) R
EGIONAL INITIATIVES  
(a) Andean Community 
25. In the course of more than thr ee decades of integration, the C AN has developed into the most 
highly institutionalized process to which Colombia bel ongs, particularly in terms of its supranational 
legal order and its dispute settlement system.  It has also progressed in substantive areas such as the 
liberalization of trade in goods in the subregion and the harmonization of instruments and economic 
and foreign trade policies, a harmonization which exte nds, in particular, to measures relating to tariff 
nomenclature, technical standards, customs and health regulations, rules of origin, and certain 
common regimes such as foreign investment, services  and intellectual property.  The institutions and 
bodies of the CAN have also been modernized in response to political and commercial needs6, and the 
Andean legislation authorizing member countries to negotiate trade agreements with third countries 
has been adopted. 
26. At the same time, as part of the agenda of the member countries of the CAN, a Work Plan 
was adopted with a view to furthering trade integrati on in the subregion so as to be able to offer an 
expanded and more attractive market for negotiating with third parties.  The Work Plan covers, inter 
alia, three main areas:  (a) free movement of goods and services;  (b) customs union;  
(c) strengthening of the legal and institutional system. 
27. The efforts by the Andean countries to refine th eir integration instruments reflects not only an 
interest in deepening the relations between the me mber countries, but also a determination to progress 
towards negotiations with the countries of the EU.  June 13th of this year saw the conclusion of the 
CAN-EU joint valuation process aimed at paving th e way for the negotiation and signature of an 
association agreement, including a free trade agreement.  This rapprochement  process having now 
been completed and the basis for negotiating a strategic association and free trade agreement between 
the two blocs established, the prospects for initiatin g the negotiation of an association agreement by 
the end of this year have improved. 
                                                      
6 The changes that have taken place in the world eco nomy have made it necessary to introduce reforms 
to the Cartagena Agreement, the Andean Community's founding legal instrument.  These changes, both institutional and programmatic, were introduced by the Protocol of Trujillo and the Protocol of Sucre 
respectively.  The Protocol of Trujillo provided for the creation and adoption of the name "Andean Community 
(CAN)" and the establishment of the Andean Integration System, defined as a series of bodies and institutions of the CAN whose purpose includes furthering subregional integration. Colombia WT/TPR/G/172 
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28. On 22 April 2006, Venezuela withdrew from the Cartagena Agreement, thereby terminating 
its rights and obligations as a member country as of that date.  However, the advantages received and 
granted under the Andean Liberalization Programme remain in force for a period of five years 
following the withdrawal.  Given the importance of  trade between Venezuela and Colombia, efforts 
are being made to create instruments that woul d preserve the free trade zone between the two 
countries.  A Memorandum of Understanding was r ecently concluded between the member countries 
of the Andean Community and Venezuela providing that the trade advantages received and granted 
under the Andean Liberalization Programme would remain intact. 
(b) Latin American Integration Association 
29. The Latin American Integration Association (L AIA), whose origins date back to 1960, was 
established by the Treaty of Montevideo in 1980 as an association by which 12 Latin American 
countries, namely Argentina, Bolivia, Brazil, Ch ile, Colombia, Cuba, Ecua dor, Mexico, Paraguay, 
Peru, Uruguay and Venezuela, seek to create a Latin American common market.  The member 
countries have taken measures to extend and harmonize the agreemen ts reached and to refine the 
regional normative framework of disciplines.  But the fact is, this integration scheme is called upon to 
include on its agenda all of the topics that form part of the accelerated process of trade globalization at 
the world level. 
30. Under the LAIA agreements, the trade advantages of the members vis-à-vis  third parties have 
been developed through so-called regional tariff pr eferences, regional scope agreements such as the 
Reciprocal Payments Agreement, and the partial sc ope agreements underpinning most of the regional 
preference schemes to which Colombia belongs.  Under the LAIA, Colombia has developed the 
different agreements in force with the other count ries of Latin America apart from the countries of the 
Andean Community. 
(c) Group of Three Free Trade Agreement (G3-FTA) 
31. Thanks to the progressive elimination of import taxes, the bulk of products has been tariff free 
since 1 July 2004.  The exceptions to this tariff el imination programme were the agricultural sector, 
and the automotive sector, for which the Agreemen t was renegotiated during the second half of 2004 
with a view to its incorporation as from 1 January 2005 in the tariff elimination programme scheduled 
to be completed in 2010. 
32. On 22 May 2006, Venezuela withdrew from the G-3, with effect 180 days following 
notification.  Mexico and Colombia are examining i ssues of bilateral interest in order to revive the 
activities of the committees and working groups.  Th ere is also an interest in including certain 
products from the agricultural sector in the trade liberalization programme.  Venezuela's withdrawal 
does not affect the reciprocal commitments between Colombia and Mexico. 
33. This Trade Agreement has been the most ambiti ous to be signed and ratified in our country, 
and in the 12 years since it entered into force, it has enabled Colombia to boost its exports from 
79.5 million dollars in 1993 to 611 million dollars in  2005.  Thanks to the Agreement, Colombian 
exporters have been able to penetrate a new market successfully. 
(d) Andean Community – Southern Common Market 
34. On 18 October 2004 Colombia, Venezuela and Ecuador, as member countries of the Andean 
Community, and MERCOSUR (Argentina, Brazil,  Uruguay and Paraguay), concluded Economic 
Complementarity Agreement No. 59, which was br ought into force in Colombia in 2005.  The 
CAN-MERCOSUR Agreement provides for market acce ss for goods, but authorized the Agreement's WT/TPR/G/172 Trade Policy Review 
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Administrative Commission to establish a time-limit for the parties to introduce appropriate 
mechanisms for the liberalization, expansion and progr essive diversification of trade in services.  It is 
in Colombia's interest, in the fra mework of the Administrative Commi ssion, to stimulate the services 
and investment negotiations with MERCOSUR. 
35. Similarly, the Administrative Commission must deal with certain elements of the Agreement 
that remain to be defined, such as the temporary orig in regimes, notification of trade-related non-tariff 
measures, and Venezuela's participation in the Agreement. 
(e) Chile 
36. This Partial Scope Economic Complementarity Agreement under the LAIA covers trade in 
goods only, and led, in 2006, to the total elimin ation of tariffs on approximately 96 per cent of 
bilateral trade.  The remaining products are to be liberalized by 2012.7   In August 2006, Colombia 
and Chile agreed on the need to modernize the existing agreement and to negotiate a free trade 
agreement in order to deepen their bilateral trad e relations, incorporating new disciplines (services, 
investment, government procurement, labour and envi ronment, cooperation, and intellectual property) 
and improving trade disciplines (access, rules of origin, customs procedures, sanitary and 
phytosanitary measures, trade defe nce instruments, and technical barriers to trade) and the dispute 
settlement mechanism.  Negotiations are scheduled to end during the firs t quarter of 2007 at the latest. 
(f) Central America 
37. Since the middle of the 1980s, Colombia has c oncluded partial scope agreements in the 
framework of the LAIA with Cost a Rica, El Salvador, Honduras, Guat emala, Nicaragua and Panama.  
These are fixed preference agreements which cover a fe w products that are of interest to each of the 
parties.  Some of these agreements have been ex tended to incorporate new products.  Negotiations 
were recently initiated with the countries of the Northern Triangle (Guatemala, Honduras and 
El Salvador) with a view to concluding a free trad e agreement, and are scheduled to be completed 
before the end of 2006. 
(g) Cuba 
38. Colombia and Cuba signed a Partial Scope Agre ement in 2000 under which Colombia grants 
Cuba preferences on some 633 subheadings, and receives preferences on some 1,020 subheadings, 
ranging from 30 per cent to 100 per cent in both cases.   In April 2006, the two countries agreed on a 
framework negotiating document with a view to ex tending the Agreement.  The issues likely to be 
negotiated are:  market access (which will include both the development of existing preferences and 
their extension to new products);  sanitary and phy tosanitary standards;  technical standards and 
conformity assessment;  dispute settlement;  and rules of origin. 
(h) CARICOM 
39. Since 1994, Colombia has had a Partial Scope Agreement with the CARICOM countries, to 
which an additional protocol was attached in May 19 98.  Colombia grants tariff preferences to those 
countries on some 1,128 subheadings in the NANDI NA nomenclature and receives tariff reductions 
on some 1,074 subheadings from the most adva nced CARICOM countries only (Trinidad and 
Tobago, Jamaica, Barbados and Guyana).  Prefer ences for the negotiated products currently reach 
100 per cent. 
                                                      
7 Meat, dairy products, fruit and vegetables, cereals, flour, seeds;  fats and oils;  sugars;  oil cakes and 
other solid residues resulting from the ex traction of fats;  adhesives and acids. Colombia WT/TPR/G/172 
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(i) United States 
40. The negotiation of a free trade agreement betw een Colombia and the United States began in 
May 2004, and ended in February 2006.  The resulting FTA sh ould be submitted to the respective 
congresses before the end of the year, and will therefore probably enter into force during the second 
half of 2007. 
(j) European Union 
41. At the Vienna Summit of 12 May 2006, refere nce was made to the strategic objective of 
initiating a process during the current year leading to  the negotiation of an association agreement that 
would include political dialogue, c ooperation programmes, and a tr ade agreement between the two 
blocs.   
42. The end of June 2006 saw the approval of the final report of the joint evaluation of the 
Andean integration process, which calls for the in itiation of negotiations between the CAN and the 
European Union during the first half of 2007. 
43. The four Andean countries (Bolivia, Colombia , Ecuador and Peru) are laying the groundwork 
for these important negotiations, which will unquestionably yield trade benefits, attract foreign direct 
investment, and strengthen European cooperation in areas such as trade facilitation and aid for trade. 
44. Colombia, with other Latin American countries, is  seeking a definitive solution to the disputes 
that have arisen in connection with the imposition of a regime for the importation of bananas in the 
European Communities' market and regrets that the problem of discriminatory treatment in favour of 
certain countries at the expense of the Latin  American suppliers has not been settled. 
45. Colombia has participated in all of the dis pute settlement cases brought against the European 
Union on the bananas issue, and considers that the current tariff of €176 per metric tonne is high, and 
unquestionably discriminates in favour of countries of  the bloc known as the ACP – Africa, Caribbean 
and Pacific States. 
(k) European Free Trade Association (EFTA) 
46. For a number of years now, Colombia has been  discussing with Switzerland the possibility of 
initiating the negotiation of a free trade agreement, ei ther with Switzerland or with the European Free 
Trade Association (EFTA).  In February 2006, Colomb ia's request to the EFTA Secretariat to initiate 
negotiations was made official.  On 17 May 2006, in  Bern, the ministers of Colombia and Switzerland 
signed a Declaration on Cooperation between Colo mbia and EFTA, which establishes a framework 
for the expansion and diversification of trad e and investment between the EFTA countries and 
Colombia.  In October of this year, a first meeting is to be held in order to exchange economic and 
trade information and draw up a joint work programme. 
47. The EFTA member countries form a market which,  thanks to the high per capita income and 
its significant share in world imports, is particularly  compatible with Colombia's interests.  At the 
same time Colombia not only imports machin ery and equipment as well as services from the 
EFTA countries, but unquestionably also  benefits from their cooperation. 
IV. INVESTMENT PROMOTION AND PROTECTION POLICY 
48. Colombia's priority is to improve its comp etitiveness in order to attract and maintain 
investment, both domestic and foreign.  This strategy  has three components:  (i) strengthening of the WT/TPR/G/172 Trade Policy Review 
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country's economic and legal stability;  (ii) continua tion of the strategy of dynamic integration;  
(iii) further improvement of investor incentives. 
49. The first component, the strengthening of economic and legal stability, involves ensuring that 
the standards of legal protection of foreign inv estors, which are guaranteed by the Constitution, 
continue to be included in intern ational agreements.  It also means making a number of regulatory 
changes to provide greater incentive for foreign inve stment and for ensuring that such investment is 
more profitable in Colombia.  In this respect th e Government plans to continue the process of 
streamlining and rationalizing formalities, to e nhance the implementation of the legal stability 
contracts, and to improve the tax system through a st ructural reform that would deal with issues such 
as competitiveness in the performance of enterprises. 
50. As regards the continuation of the dynamic integr ation strategy, efforts are being made to step 
up the ongoing process of internationalization of th e economy.  To that end, the Government will 
continue signing international investment agre ements (Reciprocal Investment Promotion and 
Protection Agreements and FTAs) with strategic partne rs so that the country can consolidate its status 
as the centre of an extensive trade and investment network: 
(1) Europe 
51. In May 2006, Colombia signed the Investment  Promotion and Protection Agreement with 
Switzerland.  The text of this Agreement is to  be submitted to the Congress of the Republic during 
2006.  Earlier, in March 2005, a si milar agreement had been signed with Spain, and the formalities for 
its entry into force are now being completed.  W ith Spain, Colombia also negotiated a double taxation 
agreement.  With Germany, Austria, Finland, Fran ce, Italy, the Netherlands, Portugal, and Belgium, 
investment promotion and protection agreemen ts are in the process of being negotiated. 
(2) Japan  
52. The Colombian Government is seeking the nego tiation and signature of an investment 
promotion and protection agreement in the medium te rm.  Its objective is to work towards a free trade 
agreement in the long term, once the investment pr omotion and protection agreement has been signed. 
(3) Russia 
53. Model agreements are currently being exch anged between Colombia and the Russian 
Federation in order to evaluate the possibility of negotiating an investment promotion and protection 
agreement. 
(4) Canada 
54. The two governments are currently discussing the possible conclusion of an investment 
protection agreement.  Canada has expressed intere st in addressing the issue of double taxation as 
well. 
55. Finally, the vision of the investment incentive strategy consists of strengthening the system of 
free zones and special export zones as well as the pr ogrammes that provide investors with guarantees 
and a favourable investment climate, in consta nt adaptation to the new tax structure and to 
international commitments. 
56. In conclusion, we merely wish to state th at Colombia, geographically defined as a large 
tropical country with domestic law and order problem s, firmly believing in democracy and committed Colombia WT/TPR/G/172 
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to growth, has experienced enormous difficulties ove r the past decade since the previous Review.  
And yet Colombia stuck firmly to its commitment to economic growth, to a more equitable agriculture that reflects pacification of the areas of  conflict and the continue d consolidation of its 
institutions, and to its economic and trade policies, in  an effort to build a free country attractive to 
investors, and to ensure a higher st andard of living for its citizens. 
 
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