Colombia WT/TPR/S/172 
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IV. TRADE POLICY BY SECTOR 
(1) OVERVIEW  
1. The agricultural sector is of the utmost importa nce to the economy because of its contribution 
to the GDP, employment and exports.  The key act ivities in terms of generating value-added are 
animal breeding and animal produc ts, the production of coffee, tropical fruit and flowers.  In 2006, 
tariff protection in the agricultural and fisheries sect or (11.9 per cent), defined according to the ISIC, 
was just below  that in the manufacturing sector (1 2.1 per cent).  Colombia abolished non-automatic 
licensing under the regime established to absorb national agricultural production on 1 January 2004.  For those products subject to tariff quotas, allocat ed under a public bidding system, import quotas are 
distributed among importers which agree to buy the largest volume of domestic production for each 
specified volume of the quota.  Non-automatic im port licences apply to imports of chicken cuts.  
There are also a number of special support programm es in the agricultural sect or, for example, fiscal 
rebates and preferential lending rates.  During th e period under review, guaranteed prices applied to 
certain products (mainly cereals). 
2. The mining and hydrocarbons sectors generate la rge amounts of export earnings (principally 
through the sale of coal and crude petroleum).  Both sectors are open to private investment and 
foreign investors receive national treatment.  In  practice, the State-owned company ECOPETROL 
plays a leading role in the extraction, refining, im port, distribution and transport of petroleum and its 
by-products.  The fuel subsidies granted continue  to impose a heavy fiscal burden and distort the 
allocation of resources.  The electricity sector is also  open to private participation.  During the period 
under review, the sector suffered the effects of the high level of concentrati on as well as supervisory 
problems.  In recent years, measures have been taken to enhance the ins titutional coordination and 
supervision of the electricity sector. 
3. Under the automotive agreement with Venezu ela and Ecuador, Colombia's automobile 
industry continued to benefit from support measures such as tariffs of up to 35 per cent on assembled 
vehicles and zero per cent on vehicles for assembly, bans on the import of second-hand vehicles and 
higher VAT rates for some imported vehicles. 
4. Colombia has adopted specific commitments in five of the 12 sectors in the General 
Agreement on Trade in Services (GATS).  It has also signed the Fourth and Fifth Protocols (on telecommunications and financial services), undertak ing commitments in relation to the Reference 
Paper on regulatory principles for te lecommunications.  This has helped to ensure the legal security 
and stability of the services sector, but Colombia could amplify these benefits by extending its 
multilateral commitments in areas hitherto excluded and by bridging the notic eable gap between its 
commitments under the GATS and the legal regime a pplied, which has been the subject of a far-
reaching liberalization programme.  The authorities have indicated that through the revised initial 
offer made by Colombia in the context of the Doha Round negotiations, Colombia would undertake 
important binding commitments in order to reinforce the opening up of services. 
5. Colombia has continued to adopt reforms designed to increase competition in the 
telecommunications sector, ending the monopoly that existed in the long-distance sector and the duopoly in the mobile telephony sector.  This pr ocess has been accompanied by more private 
investment and less State involvement in the sector.  It is important to pursue the reform process, 
notably with a view to lessening the dispersion of  regulations and the dis tinctions between various 
types of service, which are a hindrance to technological progress and the convergence of services and 
networks. WT/TPR/S/172 Trade Policy Review 
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6. In the financial sector, there has been a drastic reduction in the number of establishments 
since the last review of Colombia, mainly as a result of the closure or merger of a number of establishments during the crisis that affected th e sector and the subsequent consolidation around 
certain commercial banks.  The State's reorganizati on and rationalization strategy has led to a drastic 
diminution of its role in this sector.  The pruden tial indicators for banking have improved, to a large 
extent as a result of the regulator y and supervisory reforms.  Ther e are no legal limitations on foreign 
capital holdings in commercial banks or insurance co mpanies.  Insurance transactions with companies 
domiciled abroad are not allowed without special authorization. 
7. Colombia has streamlined the transport sector's institutiona l framework but a number of 
managerial problems remain.  Maritime transport is  playing a key role in Colombia's international 
trade.  Access to the cabotage maritime transport market is restricted to companies set up in 
Colombia, but there are no limits on foreign holdings in such companies.  Reform of the port system, 
begun in 1991, has led to higher productivity in the ports and lower port fees. 
8. Although the volume of cargo transported by air is small, the unit value is high.  Cabotage air 
transport is restricted to aircraft operated by co mpanies domiciled in Colombia;  there are no limits on 
foreign holdings in such companies, although the number of operators and flight frequencies on 
domestic routes are regulated.  As part of the decentralization policy aimed at increasing investment in infrastructure, concessions have been granted for the management of several airports, and the 
concessionaires include companies with foreign participation. 
9. In Colombia, some 60 professions are regulated.  In general, the rules governing each 
profession provide for the creation of professional as sociations, councils or tribunals coming under a 
ministry and responsible for inspecting, supervis ing and monitoring each profession.  In principle, 
professionals holding qualifications granted abroad must  have these validated before they can exercise 
their profession in Colombia, although architects a nd engineers may do so temporarily without going 
through the validation process. 
(2) A
GRICULTURAL SECTOR  
(i) Main features 
10. Between 1996 and 2003, the agricultural sector's share of the GDP was an average of 13.7 per 
cent.1  Over this period, the most important activities in the sector in terms of their contribution to the 
total value-added of the agricultural sector were:  live animals and animal products (38.9 per cent);  
coffee (not roasted or decaffeinated) (13 per cent);  forestry products and logging (1.3 per cent);  and 
other products (46.8 per cent). 
11. Over the period 1996-2003, the agricultural sect or as a whole expanded slowly with average 
annual figures of 0.8 per cent, althou gh in recent years growth has speed ed up.  As is the case in other 
countries in the region, on the Colombian agricultu ral scene sectors where crops are grown for home 
consumption2 with little involvement in market activ ities co-exist alongside a modern sector3 which 
supplies both domestic and foreign markets. 
                                                      
1 The data on the time series for the contributions by various sectors to the GDP shown in this section 
are based on the real GDP at constant prices for 1994 a nd on calculations by the Secretariat based on data from 
the Bank of the Republic. 
2 Maize, small producers of coffee, vegetables, beans, wheat, and fruit. 
3 Producing beef cattle, coffee, bananas, flowers, suga r, rice, dairy products, other tropical fruits for 
export, palm hearts. Colombia WT/TPR/S/172 
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12. During the period 1996-2004, agricultural exports accounted for an average of 27.9 per cent 
of Colombia's total exports (see Chapter I, Table AI .1).  Over this period, three products remained the 
leading exports, accounting for an average of just unde r 70 per cent of agricultural exports:  coffee, 
not roasted (36.7 per cent), bananas (13.5 per ce nt) and flowers and plan ts (17.5 per cent).  
Agricultural imports over this period represented on av erage 14 per cent of Colombia's total imports.  
The main agricultural products imported were maize (13 per cent), wheat (7.7 per cent), oilseed cake 
(5.9 per cent) and soya beans (4.6 per cent). 
13. Continuing insecurity in Colombia has had an impact on agricultural production in various 
regions and has hindered the implementation of sector al development plans.  A distinction must be 
drawn in this connection between lawful and unlawfu l agriculture, meaning illicit crops and narcotics.  
According to the authorities4, there is an increasingly marked tre nd towards lawful agriculture, which 
boosts formal agriculture.  The area growing illicit  crops reached its maximum in 2000, when it 
covered 140,000 hectares.5  It is stated that, in 2005, the eradication programmes managed to reduce 
the total area growing illicit crops by 31,285 hectares in the case of coca and 497 hectares of poppies. 
(a) Legal framework and policy objectives 
14. The Ministry of Agriculture and Rural Deve lopment (MADR) has defined the aims of the 
agricultural sector policy to be the following:  (i) to improve the situation in the sector in accordance 
with the objective of enhancing competitiveness in dom estic and foreign markets;  (ii) to harmonize 
action by the State and private initiatives;  and (iii) to make the benefits of agricultural development 
available to rural society as a whole.  The assu mptions underpinning the policy take into account, 
inter alia , the fact that the development model has cha nged in the new international context and that 
globalization of economies is an irreversible process which to a large extent determines action at the 
national level.6 
15. The MADR is responsible for formulating policy in the agricultural sector.  The main official 
bodies responsible for implementing the policy are the Instituto Colombiano Agropecuario  – ICA 
(Colombian Agricultural Institute) and the Instituto Colombiano de Desarrollo Rural  – INCODER 
(Colombian Rural Development Institute). 
16. The following are some of the principal la ws adopted during the period 1997-2006:  Law 
No. 812 of 2003 on the 2003-2006 National Developm ent Plan;  Law No. 676 of 2001 on rediscount 
of loan transactions at the ( Fondo para el Financiamiento del Sector Agropecuario ) (Fund for the 
Financing of the Agricultural Sector);  and Law No. 510 of 1999 on the financial and insurance 
system and the open market.  Other important provisions adopted in recent years include Decree 
No. 430 of 2004 setting up the Government mechanism for administering agricultural quotas;  Decrees No. 3672 and No. 1310 of 2003 laying down pr ior import licensing requirements;  Decree 
No. 1290 of 2003 eliminating the Rural Investment  Co-financing Fund;  Decree No. 1618 of 2002 on 
the Colombian Agrarian Bank;  Decree No. 1395 of 2002 on the articles of incorporation of the Fund 
for the Financing of the Agricultural Sector;  Decree No. 1257 of 2001 adopting the National Coffee 
Revitalization Programme;  Decree No. 1413 of 2000 providing for new operations by the Fund for 
the Financing of the Agricultural Sector;  Decree No. 2478 of 1999, modifying the structure of the 
                                                     
 
4 Ministry of Agriculture and Rural Development (2006). 
5 Bureau for International Narcotics and Law Enforcement Affairs, April 2006.  
http://www.state.gov/p/in l/rls//fs/64096.htm. 
6 See http://www.minagricultura.gov.co/06_01polit_general.html. WT/TPR/S/172 Trade Policy Review 
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MADR;  and Decree No. 1615 of 1998 on incentives for medium- and small-scale livestock 
production.7 
(b) Tariff measures 
17. In 2006, the average level of tariff protection in the agricultural and fisheries sector 
(according to the ISIC definition) was 11.9 per cent (see Chapter III(2)(iv)).  In order to stabilize the 
cost of importing several agricultural products, Co lombia implemented (Decree No. 547 of 1995) the 
Andean Price Band System (SAFP) provided in D ecision No. 371 of 1994 of the Commission of the 
Cartagena Agreement.  In 2006, 157 10-digit ta riff lines of the HS were subject to the SAFP8, 
corresponding to the following HS sections (the number  of 10-digit tariff lines is shown in brackets):  
pig meat (11);  chicken cuts (12);  whole milk (27);  wheat (8);  barley (3);  yellow maize (23);  white 
maize (2);  white rice (4);  soya beans (16);  unrefin ed soya bean oil (17);  unrefined palm oil (23);  
raw sugar (2);  white sugar (9).  The list of prod ucts subject to the SAFP can only be amended through 
a decision of the Commission of the Andean Community. 
18. When applying the SAFP, tariffs are based on the position of the observed price of each 
product in an international referenc e market with respect to a "band" defined by "floor" and "ceiling" 
prices set on the basis of historical values.  The re ference markets are defined in Annex 1 to Andean 
Community Decision No. 371.  If the reference price on the international market is below the floor price, the common external tariff is applied plus a surcharge.  If the reference price on the international market is above the ceiling price, the common external tariff is applied with a discount.  
Lastly, if the reference price is the same as or  between the ceiling and floor prices, the common 
external tariff applies. 
19. Every fortnight, the General Secretariat of the Andean Community defines 13 reference 
prices, one for each "marker" product, namely, rice, barley, yellow maize, white maize, soya beans, 
wheat, crude soya bean oil, crude palm oil, raw suga r, white sugar, milk, pig meat and chicken cuts.  
The floor prices of the band are the average prices ob served in the different reference markets over the 
previous 60 months, adjusted by a percentage of th e standard variation during the period.  The ceiling 
prices are obtained by adding one standard variation to the floor price.  The floor and ceiling prices 
remain in force for one year.  The formulas for calculating tariff duties and all operational aspects are 
defined in Chapters V and VI of Andean Community Decision No. 371. 
20. Products subject to the SAFP that are not markers are known as "linked" products and are 
substitutes or processed versions of the marker pr oducts.  The tariffs applied to linked products are 
based on the rate applied to the corresponding marker product and the difference between the 
common external tariff rate applied to the marker and linked products. 
21. For the purposes of the value used to determ ine the tariff duties applicable to marker 
products, Memorandum 00338 of 30 April 2003 of the Dirección de Impuestos y Aduanas 
Nacionales – DIAN (Directorate of Taxes and National Cu stoms) provides that from 1 May 2003 
official minimum prices no longer apply for the pur poses of customs valuation (see Chapter III(2)(ii)).  
The tariff duty is determined on the basis of th e c.i.f. customs value according to the methods 
provided in the WTO Customs Valuation Agreement. 
                                                     
 
7 Other relevant laws are Law No. 822 of 2003 on generic agricultural chemicals;  Law No. 818 of 
2003 on tax regulations;  Law No. 811 of 2003 on chain organizations in the agricultural, fisheries, forestry and 
aquaculture sector;  Law No. 395 of 1997 on eradication of foot-and-mouth disease; and Law No. 363 of 1997 
on the basic articles for livestock funds. 
8 See http://www.comunidadandina.org /comercio/franja_circular.htm. Colombia WT/TPR/S/172 
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22. Decision No. 430 of 1998 of the Commission of the Andean Community provides that tariff 
rates resulting from application of the SAFP may not exceed the rates bound in the WTO. 
23. Table AIV.1 contains information on the agri cultural products subject to the SAFP and the 
effect of the latter's application on MFN applied tariffs. 
24. Colombia is entitled to impose tariff quotas for the products mentioned in section I-B of 
Schedule LXXVI, under the commitment on mini mum access opportunities contained in the 
WTO Agreement on Agriculture.  It has submitted 13 notifications to the WTO relating to tariff 
quotas for the period 1997-June 2006.9 
25. The right to administer tariff quotas covers the products listed in Table AIV.2.  In the case of 
products subject to "current access" quotas, corresp onding to 57 lines, the in-quota tariffs remained 
lower than the tariffs outside the quota until 2004.  Subsequently, because of the commitments to 
lower the out-of-quota bound tariffs, these have been the same as the tariffs ap plied within the said 
current access quotas. 
26. Colombia notified the WTO10 that in 2005 it operated tariff quotas for maize (yellow and 
white), rice (in the husk, husked, semi-milled or whol ly milled, broken), sorghum, soya beans, cotton, 
bovine meat (fresh, frozen, edible offal) and poultr y cuts.  For the majority of these products, import 
quotas were allocated through the Mecanismo de Administraciòn de Contingentes 
Agropecuarios – MAC  (agricultural quotas administration mechanism) (see MAC below).  For bovine 
meat, the import quota was distributed among tradi tional importers and a percentage among new 
importers. 
27. For poultry cuts, the allocation of tariff quotas is  subject to obtaining an import licence issued 
by the Imports Committee of the Ministry of Trad e, Industry and Tourism (MCIT), which is approved 
taking into account the need to protect the domestic industry. 
28. The MAC was established by m eans of Decree No. 430 of 2004 (and amendments thereto).11  
It lays down the criteria for importing goods at in-q uota tariffs.  The level of the in-quota tariff is 
lower than the tariff obtained by applying the SAFP  on products subject to the mechanism or lower 
than the MFN tariff12 in the case of the other products subject to the MAC.  The out-of-quota tariff is 
the MFN tariff. 
29. The annual quota is the estimated volume of imports required for each tariff subheading 
distributed annually through quotas allocated among impor ters participating in the bidding procedure.  
Tranches of the annual quota are allocated on the various dates when the quotas are opened. 
30. Article 113 of Decree No. 1847 of 2005 defines an Índice Base de Subasta Agropecuaria – 
IBSA (basic indicator for agricultural bidding procedures), which is obtained by dividing the demand 
                                                      
9 WTO documents G/AG/N/COL/35 of 9 June 2006, G/AG/N/COL/31 of 11 April 2006, 
G/AG/N/COL/29 of 13 May 2005, G/AG/N/COL/24 of 28 May 2001, G/AG/N/COL/21 of 13 September 2000, 
G/AG/N/COL/10/Rev.1/Corr.1 of 21 May 1999, G/AG/N/COL/18 of 11 May 1999, G/AG/N/COL/10/Rev.1 of 29 October 1998, G/AG/N/COL/10/Corr.1 of 14 August 1998, G/AG/N/COL/10 of 29 July 1998, 
G/AG/N/COL/3 of 30 June 1997, G/AG/N/COL/2 of 15 July 1996, and  G/AG/N/COL/1 of 25 September 1995. 
10 WTO document G/AG/N/COL/35 of 9 June 2006. 
11 Thereby amending Decree No. 2685 of 1999. 
12 Periodic updates of the MFN tariff are published on the DIAN's internet site:  
http://www.dian.gov.co/dian/15servicios.nsf/arancel?openview. 
13 This article amends paragraphs 5 and 6 of Article 3 of Decree No. 430 of 2004. WT/TPR/S/172 Trade Policy Review 
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for imports by the demand for domestic production.  The demand for imports means applications to 
import goods in order to meet domestic market need s that cannot be supplied by domestic production.  
The demand for domestic production is the amount of  domestic production bought.  In order to be 
eligible to participate in the allocation of import quotas, participants must be registered with the 
MADR as importers or processors of agricultural materials. 
31. Import quotas are allocated to those importers wh ich offer the lowest IBSA, in other words, 
those importers which agree to buy the largest  volume of domestic production for each specified 
volume of the quota, using the public bidding mechanism. 
32. The Consejos de las Cadenas Producturas (Production Chain Councils) recommend a 
reference IBSA to the MADR.  The reference IBSA defined by the MADR is used by the Bolsa 
Nacional Agropecuaria – BNA (National Agricultural Exch ange) to establish maximum and 
minimum figures.  Offers must come within these maximum and minimum figures in order to be considered valid.  Furthermore, when reco mmending the reference IBSA, the Production Chain 
Councils also recommend to the MADR, before 1 December each year, the quota and the in-quota 
tariff. 
33. Before 31 December, the Committee on Customs, Tariff and Foreign Trade Affairs 
recommends to the Government the in-quota tari ff and the annual quota for the following year, 
subject to approval of the maximum fiscal cost by the Higher Fiscal Policy Council.
14  Using this as a 
basis, the Production Chain Councils recommend the amounts of the quotas for each bidding 
procedure to the MAC's Inter-Institutional Co mmission.  Following approval by the MAC's 
Intersectoral Commission, the MADR adopts the qu ota and instructs the Agricultural and Livestock 
Exchanges to conduct the bidding procedures, info rming them of the list of importers entitled to 
participate in the auction 25 days prior to the date  of initiating the procedure and this list is published 
10 days before bidding begins. 
34. Table IV.1 shows the types of product to wh ich tariff quotas and the SAFP may be applied. 
Table IV.1 
Group of agricultural and livestock produc ts subject to tariff quotas and the SAFP 
Producta WTO tariff quota Andean price band Number of tariff lines 
Rice Yes Yes 4;  4b 
Yellow maize Yes Yes 1;  23b 
White maize Yes Yes 1;  2b 
Cotton No No 4 
White sugar No Yes 9 
Raw sugar No Yes 2 
Beans No No 9 
Barley No Yes 3 
Yellow soya beans Yes Yes 1;  16b 
Wheat No Yes 8 
Sorghum No Yes 1 
Whole milk Yes Yes 14;  16 
Palm oil No Yes 23 
Soya bean oil No Yes 17 
Deboned meat, fresh or chilled Yes No 2 
Bovine offal and intestines Yes No 8 
Pig meat No Yes 11 
Chicken cuts No Yes 12 
Other dog and cat food Yes No 1 
Dextrine and other starches No Yes 2 
Table IV.1 (cont'd) 
                                                      
14 The maximum fiscal cost means the maximum amount incurred by the Government as a result of the 
lower tariff payable on imports subject to the bidding procedure held under this mechanism. Colombia WT/TPR/S/172 
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Producta WTO tariff quota Andean price band Number of tariff lines 
Plant materials No No .. 
Sifting residues No No .. 
Fruit juices No No .. 
Malt No Yes Including barley band 
Sunflower seeds No Yes Including soya bean oil band 
Linseeds No No .. 
Butter No Yes 4 
Cheese and curd No Yes 5 
Fats and oils No No .. 
Margarine No Yes 1 
Groundnut oil No Yes Including soya bean oil band 
Coconut oil No Yes Including palm oil band 
Rapeseed oil No Yes Including soya bean oil band 
Fatty acids No No .. 
Lard No .. Including palm oil band 
Lard stearin No .. Including palm oil band 
.. Not available. 
a There may be differences  between quotas and the SAFP for some tariff lines. 
b Number of tariff lines subjec t to quotas and/or price bands. 
Source : Prepared by the Secretariat on the basis of information s upplied by the authorities and the list of concessions of the 
WTO Agreement on Agriculture. 
 
35. Colombia reserved the right to make use of  the agricultural special safeguard under the 
Agreement on Agriculture for all the products listed in Table IV.1, although in practice it has never 
applied such measures.  In addition, as stated in  Chapter III(2)(viii)(d), at  the Andean Community 
level, Colombia has applied safeguard measures to rice, sugar and vegetable oils imported from 
Andean countries on preferential terms. 
36. Under the Free Trade Agreement signed betw een Colombia and the MERCOSUR countries 
in 2005, quotas were determined giving preferential ra tes for meat, milk, confect ionery and chocolates 
(only granted to Argentina) and processed meat products. 
(c) Absorption agreements 
37. Pursuant to the Constitution (Articles 64, 65 and 66), Colombia implements a domestic 
agricultural production absorption policy in order to  encourage the development of agricultural, 
livestock and fishing activities, raise the income s and improve the living standards of domestic 
producers, and enhance the sector's competitiveness.  As part of this policy, the price paid by 
processing industries to farmers was higher than the ma rket price;  in return, the processing industries 
were given tariff reductions for their imports. 
38. Decree No. 2524 of 1994 established and regulated  a compensatory system in implementation 
of Law No. 101 of 1993 (equivalent special tari ff discount) intended to compensate importers of 
wheat, barley, maize and sorghum which absorbed domestic production of these products.  This 
mechanism was only in effect in 1995, when co mpensation amounting to US$8 million was paid out. 
39. As explained in Chapter III(4)(v)(b), in 1995 Colombia notified15 its agricultural production 
absorption policy to the WTO as a trade-related investment measure (TRIMS) and was given an 
extension until 31 December 2003 at the latest  in which to eliminate the measure.16  Decree No. 1473 
of 2004 repealed Decree No. 2439 of 1994, whic h established approvals for the importation of 
                                                      
15 WTO document G/TRIMS/N/1/COL/2 of 21 September 1995. 
16 WTO document G/L/498 of 9 November 2001. WT/TPR/S/172 Trade Policy Review 
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products subject to the absorption policy.  The au thorities have stated that, as a result, no more 
agreements on the absorption of crops have been drawn up. 
(d) Domestic support and subsidies 
40. In its notifications to the WTO on domestic support commitments, Colombia stated that it had 
granted subsidies each year during the period 1996-2003.17  According to Colombia's notifications to 
the WTO, the amounts of the total aggregate measureme nt of support given were much lower than the 
maximum amounts in Colombia's commitments.  In its latest notification on domestic support 
commitments18, Colombia notified that the green box meas ures included support provided in the form 
of general services and regional assistance.  Th e measures notified under the heading special and 
differential treatment included investment subsidi es generally available and support for encouraging 
diversification with a view to abandoni ng crops used to obtain illicit narcotics. 
41. Based on the provisions in Law No. 101 of 1993, between 2001 and 2003 the Government 
gave direct support to coffee producers to complement the domestic price (AGC), amounting to Col$284,297 million (some US$111 million). 
42. In the notifications to the WTO on agricultural e xport subsidies, Colombia stated that it had 
granted agricultural export subsidies in 1996, 1997 and 1998.
19 
(e) Marketing and pricing 
43. There is a minimum guaranteed price for cotton.  The purpose of this policy is to enhance the 
competitiveness of the cotton sector and offset the imp act of distortions in the international market.  
Resolution No. 051 of 2003 of the Ministry of Agriculture determined measures to regulate the milk 
market, including minimum reference prices and quot as, as set out in Agreement No. 007 of 2002 of 
the National Dairy Council, and this measure remained in effect until mid-2005.  Minimum guaranteed prices and twice-yearly intervention applied over the period 1992-1998 to a list of 
products which included sesame, type I rice (Paddy, IR 22, Oryzica), barley, beans, yellow maize, 
white maize, sorghum, soya beans, wh eat, sunflowers and dried manioc.
20  Decree No. 1675 of 1997 
abolished the Crop Purchasing Fund and it has not been replaced by any other government buying-in 
scheme. 
44. BNA is still acting as an open market for agricultural and livestock products, goods and 
services.  It is a semi-public company with a majo rity private holding.  In 2005, the BNA and the 
                                                      
17 WTO documents G/AG/N/COL/30/Rev.1 of 21 June 2006, G/AG/N/COL/30 of 20 May 2005, 
G/AG/N/COL/23 of 28 November 2000, G/AG/N/COL/20/Corr.1 of 9 October 2000, G/AG/N/COL/20 of 
21 July 2000, G/AG/N/COL/6/Add.1 of 28 October 1998, G/AG/N/COL/7/Add.1 of 28 October 1998, 
G/AG/N/COL/8/Add.1 of 28 October 1998, G/AG/N/COL /6/Corr.1 of 27 October 1998, G/AG/N/COL/8 of 
20 July 1998, and G/AG/N/COL/6 of 15 September 1997. 
18 WTO document G/AG/N/COL/30/Rev.1 of 21 June 2006. 
19 WTO documents G/AG/N/COL/33 of 26 May 2006, G/AG/N/COL/34 of 26 May 2006, 
G/AG/N/COL/11/Add.1 of 12 December 2005, G/AG/N/COL/12/Add. of 12 December 2005, 
G/AG/N/COL/13/Add.1 of 12 D ecember 2005, G/AG/N/COL/19/ Add.1 of 12 December 2005, 
G/AG/N/COL/26/Add.1 of 12 D ecember 2005, G/AG/N/COL/28/ Add.1 of 12 December 2005, 
G/AG/N/COL/28 of 4 May 2005, G/AG/N/COL/26 of 28 May 2001, G/AG/N/COL/19/Corr.2 of 1 March 2001, 
G/AG/N/COL/19/Corr.1 of 18 January 2000, G/AG/N/COL/19 of 6 January 2000, G/AG/N/COL/15 of 30 April 1999, G/AG/N/COL/14 of 29 April 1999, G/AG/N/COL/16 of 29 April 1999, G/AG/N/COL/12 of 
16 November 1998, and G/AG/N/COL/13 of 16 November 1998. 
20 Data from the Statistical Yearbook of the Ag ricultural Sector, National Planning Department.  
Viewed at:  http://www.dnp.gov.co/paginas_detalle.aspx?idp=88. Colombia WT/TPR/S/172 
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Fondo para el Financiamiento de l Sector Agropecuario – FINAGRO  (Fund for Financing the 
Agricultural Sector) signed an agreement authorizing the Fondo Agropecuario de Garantías –  FAG 
(Agricultural Guarantee Fund) to support operations  carried out through the BNA by means of simple 
forward contracts and forward contracts in the op en market.  The BNA has also signed agreements 
with the MADR on implementation of support progr ammes and marketing incentives.  Under these, 
the BNA has made disbursements to encourage the st orage of rice and cotton, and has paid minimum 
support prices determined by the Government.21  In January 2006, the joint BNA/MADR forward 
coverage programme provided an incentive for pur chasing hedging instruments to cover the fall in 
prices and exchange rates below a floor level for fa rmers, as well as increases above a ceiling level for 
buyers.22 
45. The National Coffee Fund offers a purchasing guarantee service to coffee producers through a 
system linking the Fund, Almacafé and the cooperativ es so as to create a floor level in the market 
ensuring that the producer receives the best possible pri ce.  In order to implement this service, there is 
an institutional linkage starting with the Nationa l Coffee Fund and ending at the cooperatives 
purchasing point.23 
(f) Financing and insurance 
46. The Government has programmes to support ru ral lending through special lines of credit 
granted by FINAGRO to the most vulnerable sectors of the population24 on favourable terms as 
regards the time-limits, grace periods, guarantees required and interest rates, when compared with consumer or free investment credits in other sectors of the economy. 
47. Pursuant to Law No. 16 of 1990 (establishm ent of FINAGRO) and Decrees Nos. 1447 and 
1281 of 1999 (FAG), a number of incentives are availa ble in the form of interest rates regulated
25 by 
FINAGRO in rediscount transactions, funds available as a result of mandatory investment26 by 
financial intermediaries (loans to replace mandato ry investment or constituting an agricultural 
portfolio).  In 2005, FINAGRO granted total loan s amounting to US$951.3 million, of which 60.7 per 
cent were for investment, 32.6 per cent for working capital and 6.7 per cent for upgrading 
(reorganization and refinancing) of the portfolios. 
48. In recent years, both investment and FINAGR O's agricultural portfolio have increased 
substantially.27  The most important growth has been in loans to small farmers, which amounted to 
US$276.2 million in 2005.  The majority of tran sactions, however, concerned producers belonging to 
strategic alliances in which a large proportion of the beneficiaries might be small producers.  In 2005, 
these transactions amounted to US$675.2 million.  According to the authorities, over the period 
2000-2005, FINAGRO did not make any losses. 
49. Special programmes have also been establishe d for refinancing debt, including the purchasing 
of assets belonging to small farmers facing situa tions of disaster and in 2004 FINAGRO started to 
                                                      
21 BNA (2005). 
22 Idem . 
23 See http://www.cafedecolombia.com/servcaficultor/garantia.html. 
24 Small producers, rural women with low incomes, displaced populations. 
25 See http://www.finagro.gov.co/. 
26 Pursuant to Article 15 of Law No. 16 of 1990, FINAGRO r eceives resources through the issue of 
Títulos de Desarrollo Agropecuario - TDA  (agricultural development instruments obligatorily taken out by loan 
establishments in proportion to their liabilities in  legal tender subject to  reserve requirements. 
27 Re-discounted plus substitute agricultural portfolio. WT/TPR/S/172 Trade Policy Review 
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recover assets involving arrears of some US$57 million.28  In 2003, the Fondo de Solidaridad 
Agropecuario – FONSA (Agricultural Solidarity Fund) set aside Col$8,000 million (some 
US$3 million) to cover losses caused by climate risk s, phytosanitary problems or diseases and public 
order disturbances.29 
50. The Programa Nacional de Re activación Agropecuaria  – PRAN (National Agricultural 
Revival Programme), with resources of Col $160,000 million (1999) (som e US$91 million), is a 
programme for the rehabilitation of small and medium-size producers defaulting on their loans.30  In 
December 2005, Col$130,000 million had been disbursed (some US$56 million). 
51. In August 2005, the Government announced th e following three additional measures within 
the support programmes for the sector:  (i) a new FI NAGRO line of credit for agricultural exporters;  
(ii) expansion of FAG cover to transactions on the BNA;  (iii) increase in the volume of operations 
covered by the FAG.31 
52. In recent years, the Ministry of Agriculture h as relaxed the requirements for eligibility for the 
exchange coverage programme operated through the Agrarian Bank.  Since January 2006, there has 
also been an exchange coverage pr ogramme for major agricultural exports32 through the BNA's 
Compensation Chamber.  In addition, there is a pr ogramme to cover fluctuations in international 
prices for producers of yellow maize, sorghum and soya beans.  The MADR provides direct support of up to 80 per cent of the cost of the premium for "put" options offered by the BNA, but under no circumstances can the amount subsidized unde r the programme exceed Col$80 per US$ covered.
33 
53. The Incentivo a la Capitalización Rural –  ICR (Rural Capitalization Incentive)34 is in the 
form of money paid towards a loan and is in tended to support modernization of agricultural 
production.  For small producers, the percentage amo unts to a maximum of 40 per cent of the value of 
the investment and for other producers the figure is 20 per cent.  A rediscount operation with FINAGRO is required in order to be eligible for the ICR;  between 1994 and 2004, US$81.9 million 
were disbursed under the ICR.
35  In 2005, 4,900 incentives amounting to Col$26,380 million, 
corresponding to some US$10.9 million were disb ursed.  In 2006, the ICR budget is Col$33,750 
million. 
(g) Other measures 
54. The coffee contribution tax, which is imposed on mild coffee exports36, generates resources 
used by the National Coffee Fund to finance agri cultural extension servic es to coffee growers, 
research and development, promoti on, advertising and, in partic ular, guaranteed purchasing of the 
producer's crop.  The contribution's floor is US$0.02 when the price is US$0.40 and the ceiling is 
US$0.04 when the price reaches US$0.80/lb.  An  additional tax of US$0.02 applies up to 
                                                      
28 See http://www.presidencia.gov.co/sne/2004/septiembre/19/03192004.htm. 
29 This programme consists of buying up the agricultural assets over a period of up to 10 years with 
three years of grace and preferential interest rate s of over three points to facilitate prepayment. 
30 The provisions include buying up agricultural assets over a period of up to 10 years with three years 
of grace, lower interest rates, encouraging prepayment and payment plans in accordance with the flow of 
projects. 
31 See http://www.presidencia.gov.co/sne/2005/agosto/09/15092005.htm. 
32 Sugar cane, African palm, cocoa, bovine meat, tilapi a, milk and dairy products for export, shrimps, 
plantains, fruit and tobacco. 
33 See http://www.minagricultura.gov.co/noticias/noticia.php?id=427. 
34 See statistics at http://www.finagro.gov.co/. 
35Idem . 
36 Coffee contribution tax, Chapter VI, Article 19, Law No. 788 of 2002. Colombia WT/TPR/S/172 
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31 December 2006 for the purpose of reorganizing the National Coffee Fund.  Law No. 788 of 2002 
also imposed a tax of US$0.03/lb. of coffee exporte d when the price of mild coffee is US$0.95/lb. or 
more;  this tax is intended to stabilize the incomes of coffee growers through the domestic price.  This 
mechanism has not been used during 2006. 
55. A number of agricultural products have been the subject of a series of import requirements 
including licences (both automatic and non-auto matic), approval, import registration (see 
Chapter III(2)(vii)) and phytosanitary and animal  health permits (see Chapter III(2)(x)). 
56. As regards phytosanitary requirements, the Mi nistry of Agriculture established an incentive 
for flowers and bananas providing producers with funds to support the costs incurred by proper 
phytosanitary management of crops and to combat certain diseases. 
57. In recent years, investment in agricultural science and technology h as been through several 
programmes that had a budget of Col$508,672 million between 2002 a nd 2006 (approximately 
US$190.5 million). 
58. Law No. 811 of 2003 established chain organizations  in the agricultural, forestry, aquaculture 
and fishing sector, coordinated by the MADR.  Th is scheme is based on Law No. 101 of 1993, which 
initiated the organization of production chains in th ese branches.  The purpose is to ensure that the 
agro-industrial export competitiveness agreemen ts are coordinated within the MADR's 
competitiveness agreements mechanism, with particip ation by the Ministry in matters relating to 
industrial strengthening, linkages and associative activities, inter alia . 
59. Colombian bananas are exported to the Europ ean Union (EU) under a tariff quota system.  
The authorities have indicated that, since 2006, the EU has established an MFN tariff of €176/tonne 
and a tariff-free quota of 775,000 tonnes for bananas from ACP countries.  The authorities have also 
stated that this new regime is being studied by  Colombia with regard to its conformity with 
WTO rules and the possible adverse effects on Colombia's exports. 
60. In 2006, the United States gave Colombia 2.3 pe r cent of its total tariff quota for sugar cane, 
corresponding to 27,907 tonnes.37  The quota for sugar exports to the United States is administered by 
the MCIT, which allocates the quota according to the applications put forward by exporters. 
(3) MINING , EXCLUDING HYDROCARBONS  
61. Over the period 1996-2004, the growth trend in the mining sector (mining and quarrying, 
including coal) fluctuated.  The sector's contribut ion to the GDP remained fairly steady until 2003, 
when a sharp increase in production saw its share ri se from 2 per cent to 2.8 per cent.  The mining 
sector is an important generator of export earnings (see Chapter I).  Colombia is Latin America's 
leading producer and exporter of coal and one of th e world's major exporters of emeralds.  Colombia 
also produces gold, ferro-nickel, cement, steel and platinum. 
62. In recent years, the Government has greatly reduced its direct involvement in mining by 
liquidating companies such as Carbocol and Minercol.38  At the end of 2005, the non-petroleum 
mining sector was almost entirely in the hands of the private sector. 
                                                      
37 See http://www.fas.usda.gov/itp/imports/ussugar.asp. 
38 The liquidation of Minercol (which resulted from the merger of Mineralco and Ecocarbon) started in 
2004 under Decree No. 254 of 2004 and has not yet been completed. WT/TPR/S/172 Trade Policy Review 
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63. Coal is mainly mined by the companies Carbones del Cerrejón  and La Loma , which account 
for approximately 92.3 per cent of Colombia's pr oduction.  In 2004, Colombia produced 53.6 million 
tonnes of coal, the highest historical level of production;  Carbones del Cerrejón  mined 
24.9 million tonnes, all of which were exported. 
64. Domestic policy on exploration, processing and distribution of minerals is formulated, 
implemented and regulated by the Ministry of Mining and Energy (MME).  The Instituto Colombiano 
de Geología y Minería (Ingeominas)  (Colombian Geological and Mining Institute) is responsible, 
inter alia , for issuing mining permits and ensuring compliance with the requirements by permit 
holders, collecting royalties a nd undertaking basic exploration in order to assess the potential 
resources of Colombia's subsoil.39 
65. Article 332 of the Constitution provides that  non-renewable natural resources are the 
inalienable and permanent property of the State.40  The State may authorize private Colombian or 
foreign companies to engage in mining.  The Mini ng Code (Law No. 685 of 2001) guarantees foreign 
investors the principle of national treatment.41  Foreign companies must establish a subsidiary 
domiciled in Colombia before they can conclude  an agreement on a mining exploration concession. 
66. The Mining Code adopted in 2001 introduced profound reforms into the regulatory 
framework.  The new Code defines the economic off sets and determines that a contract may not be 
amended in any way by subsequent legislation.42  The Code also streamlined procedures and technical 
and operating reports.  In addition, it established the National Royalties Fund.43 
67. Decree No. 4743 of 2005 extended for a period of five years the exemption from tariffs on 
imports of equipment and machinery to be used  for mineral exploration.  Under a scheme for 
accrediting mining exports as green products, compani es which invest no less than 5 per cent of the 
f.o.b. value of their annual exports in forestry pr ojects are entitled to exemption from any type of tax 
on these investments.44 
68. Mining activities are subject to general taxes a nd to two special taxes, levies and royalties.  
Concessionaires must pay an annual surface levy corresponding to the whole area of the concession.  
The amount of the levy ranges from one to three minimum daily wages per hectare depending on the 
size of the concession.  The Mining Code also impo ses payment of a royalty for exploiting minerals.  
This consists of a standing or progressive percentage  of the gross product exploited that is the subject 
of the mining permit, calculated at the mine face. 
69. The tax on exports of emeralds45 is a charge imposed in order to finance programmes to 
develop the industry and social and economic deve lopment programmes in the zones of production.  
The National Emeralds Fund is responsible for coll ecting the tax and administering this programme. 
                                                      
39 Reorganized under Decree No. 3577 of 29 October 2004. 
40 Law No. 685 of 2001 (Article 5) also provides the following:  "Except for special legal situations 
derived from private ownership titles relating to upgra ded mines in accordance with pre-existing laws." 
41 Articles 18 and 19, Law No. 685 of 2001, and Decree No. 2080 of 2000. 
42 Articles 46 and 59, Law No. 685 of 2001. 
43 Ibid., Article 165 of Law No. 685 of 2001. 
44 Ibid., Article 235. 
45 One per cent of the value export ed (Decree No. 2407 of 2000). Colombia WT/TPR/S/172 
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(4) HYDROCARBONS (INCLUDING PETROLEUM BY-PRODUCTS ) 
70. In 2004, the gas, crude petroleum and by-pro ducts sector accounted for some 3.0 per cent of 
the GDP and just over one quarter of exports.  The production of crude petroleum fell from 297 million barrels in 1999 (the historical maximum) to 192 million in 2005.  Over the same period, 
proven reserves of hydrocarbons fell from 2,289 to 1, 453 million barrels.  Official estimates forecast 
that, if there are no new discoveries, Colombia w ill become a net importer of hydrocarbons within 
10 years.
46  Even though public security problems continue  to pose problems for exploration, over the 
past two years there has been a marked  decrease in the number of attacks. 
71. ECOPETROL produces crude petroleum in Colombia  either directly or through production –
sharing agreements with private oil companies.  In 2005, its share of the volume produced was 
approximately 70 per cent.  ECOPETROL operates most  of the refining, transport, import and storage 
infrastructure.  Colombia's network of pipelin es comprises 4,866 km belonging both to the private 
sector and to ECOPETROL.  In 2006, Colombia ha d three oil refineries, all owned by ECOPETROL, 
with a refining capacity of around 305,000 barrels daily. 
72. ECOPETROL accounts for over 60 per cent of production in the natural gas market, while 
Chevron-Texaco has 19 per cent and the other produ cers 21 per cent.  According to the authorities, 
this concentration of natural gas production in the hands of just a few companies makes it difficult to 
liberalize prices at the well-head.  The State- owned company Ecogas and the private company 
Promigas are the only transporters of natural gas.   Liquefied petroleum gas (LPG) is produced and 
transported by ECOPETROL alone.  The residentia l sector is the largest consumer of LPG and 
32 companies provide it w ith distribution services. 
73. In 2005, the producer price of gasoline and diesel fuel were 38 per cent and 50 per cent 
respectively, below the parity reference prices in the United States Gulf market.  Estimates by the 
Colombian authorities show that the amount of the subsidies generated by such disparities amounted 
to Col$4.8 billion in 2005 (approximately US$2 billio n).  The Government is taking a number of steps 
to bring domestic prices up to international levels .  These currently include monthly adjustments of  
domestic prices and approval is being sought for a bu dget line to give refiners reasonable prices based 
on international reference prices. 
74. The Ministry of Mining and Energy (MME), through its Hydrocarbons Directorate, is 
responsible for adopting and regula ting Colombia's hydrocarbons policy.  It is also in charge of 
monitoring operators and determining prices in th e sector, with the exception of residential gas 
services, which are the responsibility of the Comisión de Regulación de Energía y Gas - CREG 
(Energy and Gas Regulatory Commission). 
75. The Political Constitution provides that hydro carbons deposits are the inalienable and 
permanent property of the State.  ECOPETROL act s as producer, administrator and regulator of the 
petroleum industry, although Decree No. 1760 of 2003 modified the enterprise's basic structure and 
made it into a public limited company, 100 per cent owned by the State, responsible only for 
exploration and production of petr oleum and its by-products.  The Agencia Nacional de 
Hidrocarburos –ANH (National Hydrocarbons Agency) was cr eated under the same Decree as a body 
under the MME.  Its role,  inter alia , is to administer hydrocarbons  deposits, draw up, negotiate and 
conclude new exploration and expl oitation contracts for hydrocarbons belonging to the State, to 
collect royalties and monetary compensation under the said contracts and to determine the volumes 
and prices of crude petroleum to be used for refining domestically.  Since 2004, the ANH has 
allocated new exploration and production areas to an y company that meets the specified requirements. 
                                                      
46 Mining and Energy Planning Division (2006). WT/TPR/S/172 Trade Policy Review 
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76. Decree No. 4299 of 2005 provided that petroleu m refining in Colombia is free.  The only 
exception to the national treatment principle in the hydrocarbons sector relates to the exchange regime 
in accordance with the General Foreign Investment Regime (Decree No. 2080 of 2000)  Some 
exchange operations by foreign companies, for ex ample, the purchase of foreign currency needed to 
pay for imports, are restricted and subject to the re gulations of the Board of Directors of the Bank of 
the Republic.47 
77. Other activities in the petroleum chain (refining, import, storage, wholesale distribution, 
transport and retail distribution) are open without r estriction to companies with Colombian or foreign 
capital.  The law guarantees third parties access to  the transport of products through ECOPETROL's 
multi-product pipelines and the right to build new connections to existing pipelines.48 
78. In practice, however, almost all the refining and storage infrastructure is owned by 
ECOPETROL.  The authorities have pointed out th at the subsidies in effect do not facilitate 
participation by other agents in the production chai n or in the import of hydrocarbons-derived fuels.  
There are only marginal imports by large priv ate operators not receiving subsidies and by 
ECOPETROL in order to meet demand not satisfied  by the refineries, mainly for diesel fuel.  
According to the authorities, it is hoped that in the future the new price situation will encourage other 
agents to participate in the chain. 
79. Colombia's legislation regulates the export of na tural gas in order to ensure that domestic 
demand is satisfied.  The CREG is entrusted with  limiting exports when reserves are insufficient 
and/or there are supply restrictions.49 
80. Colombia has signed agreements w ith Panama and Venezuela to market natural gas.  Plans to 
build gas pipelines linking Colombia with these countries are at an advanced stage. 
81. The selling price of petroleum by-products to final consumers must conform to two possible 
regimes, monitored freedom to set prices or regul ated freedom.  The base price is set by the MME 
using a methodology that takes into account the marg ins for each participant in the petroleum chain, 
the international price trends for fuel and variations  in the exchange rate.  One other important factor 
when calculating the base price is the global fuel ta x, which is a standing charge that is adjusted 
annually according to the inflation goal defined by th e Bank of the Republic.  In the case of gasoline 
for motor vehicles and diesel fuel, the surcharges consisting of 25 per cent and 6 per cent respectively 
on these products also affect the base price.50 
82. Decree No. 4743 of 2005 extended for five year s the exemption from tariffs on imports of 
equipment and machinery to be used for petroleu m exploration.  This Decree also extended the 
exemption to equipment to be used for other activ ities in the petroleum production chain, for example, 
material needed to build multi-product pipelines.51  The extension was authorized by the General 
Secretariat of the Andean Community.52 
83. The Petroleum Savings and Stabilization Fund remains in effect as a regional and sectoral 
development fund for production zones. 
                                                      
47 Decree No. 2080 of 18 October 2000, amended by Decree No. 1844 of 2 July 2003. 
48 Law No. 681 of 9 August 2001 and Draft Regulations of 2005. 
49 Article 23, Law No. 142 of 11 July 1994, and CREG Resolution No. 017 of 29 March 2000. 
50 Law No. 681 of 9 August 2001 and Law No. 488 of 24 December 1998. 
51 Decree No. 4743 of 30 December 2005, amending Decree No. 255 of 11 February 1992. 
52 Andean Resolution No. 880 of 2 December 2004. Colombia WT/TPR/S/172 
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(5) MANUFACTURES  
84. The manufacturing sector's share of GDP remain ed steady throughout the past decade, at 
14.9 per cent in 1994 and 14.7 per cent in 2005.53  The sector's GDP grew at an average annual rate of 
2.3 per cent over the same period.  Table IV.2  shows the breakdown of GDP by manufacturing 
industry. 
85. The most important manufactures imported by Colo mbia are:  basic chemicals;  automobiles 
and automobile engines;  other chemical products;  radio and television transmitters;  products of the 
iron and steel basic industries;  machinery for general use;  and machinery for special use.  Using the ISIC definition
54, the average MFN tariff applied by Colombia to manufactures in 2006 was 12.1 per 
cent (see Table III.1).  Colombia still applies a number of trade protection measures (see 
Chapter III(2)(viii)) on manufacturing sector imports, as well as some non-automatic licences (see Chapter III(2)(vii)).  As Colombia has been implem enting its international commitments, recourse to 
these measures has diminished. 
86. There a dynamic trend in exports of manufactur es in 2004 and 2005, with an average annual 
growth rate of 30.5 and 29.7 per cent respectively.   In 2005, the major growth in exports was in 
petroleum refining, petroleum by-products, transpor t equipment, ferrous meta ls, other foodstuffs and 
non-metallic minerals.  In 2005, use of plant capac ity reached an average of 79 per cent, thereby 
exceeding the average for recent years.
55 
87. During the import substitution period, exports by  Colombian industry were marginal, whereas 
exports currently form an integral part of many co mpanies' growth strategy.  Exports as a percentage 
of manufacturing increased from around 19 per cent in 1992 to 22.9 per cent in 2004.56  O n e  
favourable factor has been the increase in forei gn direct investment in Colombia.  Nevertheless, 
raising the productivity of companies is still one of the major challenges in the manufacturing sector. 
Table IV.2 
Manufacturing industries, 2003 
(Col$ billion and percentages) 
 Value of production Manufactures 
production 
sector (%)a Value added Value added 
manufacturing 
sector (%)a 
Manufacturing industries  103,126   100  33,685  100 
 12. Meat and fish  10,018  9.7  1,727  5.1 
 13. Oils, animal and vegetable fats, 
sediment and cake  2,821  2.7  739  2.2 
 14. Dairy products  3,435  3.3  889  2.6 
 15. Products of the milling industry, 
starches and products thereof  8,076  7.8  1,629  4.8 
 16. Sugar  2,134  2  824  2.4 
 17. Processed coffee  579  0.6  201  0.6 
Table IV.2 (cont'd) 
                                                      
53 Quarterly Gross Domestic Product including illicit cr ops at constant prices, by branch of economic 
activity ( Departamento Administrativo Nacional de Estadística – DANE (National Administrative Department 
of Statistics)).  It should be noted that there are substantial differences in the methodologies used for the 
industrial surveys by the DANE and Asociación Nacional de Industriales de Colombia  – ANDI (National 
Association of Colombian Industrialists), and that they yield different estimates of industrial growth (CONPES 
document 3364 of July 2005). 
54 ISIC, revision 3, groups 15 to 37. 
55 ANDI (several years). 
56 Calculations by the ANDI. WT/TPR/S/172 Trade Policy Review 
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 Value of production Manufactures 
production 
sector (%)a Value added Value added 
manufacturing 
sector (%)a 
 18. Cocoa, chocolate and confectionery 
products prepared with sugar  1,685  1.6  700  2.1 
 19. Other food products n.e.s.  2,651  2.6  950  2.8 
 20. Beverages  4,782  4.6  2,424  7.2 
 21. Tobacco products  591  0.6  376  1.1 
 22. Yarns and threads;  fabrics of textile 
fibres, including tufted fibres  1,983  1.9  575  1.7 
 23. Textile articles (except clothing)  920  0.9  275  0.8 
 24. Knitted or crochete d fabrics;  clothing  4,975  4.8  1,855  5.5 
 25. Leather and leather products;  footwear  1,613  1.6  608  1.8 
 26. Products of wood, cork, straw and 
plaiting materials  823  0.8  304  0.9 
 27. Pulp, paper and paper board  3,985  3.9  957  2.8 
 28. Printed materials and similar articles  3,217  3.1  1,457  4.3 
 29. Refined petroleum products;  nuclear 
fuels and coke oven products  8,537  8,3  3,572  10.6 
 30. Basic and manufactured chemicals 
(except plastic and rubber articles)  12,646  12.3  4,348  12.9 
 31. Rubber and plastic articles  4,326  4.2  1,684  5 
 32. Glass and glass products and other non-
metallic products n.e.s.  5,360  5.2  2,139  6.4 
 33. Furniture and transportable goods n.e.s.  2,716  2.6  938  2.8 
 34. Wastes or scraps  286  0.3  286  0.9 
 35. Base metals and manufactured metal 
products, except machinery and 
equipment  7,623  7.4  2,453  7.3 
 36. General and special purpose machinery  1,954  1,9  653  1.9 
 37. Other machinery and electricity 
supplies  1,839  1.8  582  1.7 
 38. Transport equipment  3,551  3.4  541  1.6 
a The total may not amount to 100 per cent b ecause the figures have been rounded off. 
Source : Prepared by the WTO Secretariat on the basis of info rmation supplied by the DANE and the Division of National 
Syntheses and Accounts (Colombia, production account, according to branch of economic activity). 
 
88. The MCIT's Directorate of Productivity and Competition is responsible for coordinating 
Colombia's national productivity and competition policy by developing joint action by the public, 
private and academic sectors.  The 1999-2009 Strategic Plan includes measures to enhance 
competitiveness and lays emphasis on production chai ns-export competition agreements.  The MCIT 
coordinates the competition agreements of the chai ns producing motor vehicle parts/motor vehicles;  
leather, footwear and manufactures thereof;  do mestic appliances;  professional electronics;  
mechanical engineering;  petrochemicals;  cosm etic and hygiene products;  pulp, paper and the 
graphic industry, inter alia . 
89. The most important activity as far as the manufacture of transport equipment is concerned is 
the manufacture of vehicles and spare parts, which in 2004 employed some 12,252 people.57  Growth 
in trade in automotive products h as also been fostered through exports of automotive products to 
Venezuela and Ecuador, with which Colombia has an automotive sector agreement (see also 
Chapter III(4)(v)(b)). 
90. Other industrial policy measures applied specifi cally to the automotive sector during the 
period under review included higher VA T rates on foreign automobiles (s ee Chapter III(3)(ii)).  As far 
as customs valuation is concerned, the authorities ha ve indicated that, pursuant to the decision by the 
                                                      
57 DANE (2006) – Annual Manufacturing Survey, 2004. Colombia WT/TPR/S/172 
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WTO Customs Valuation Committee58, since 1 May 2001 officially established minimum values have 
no longer been applied for the purposes of custom s valuation of automotive sector products of 
headings 20.01.87.01.20, 87.02.10, 87.03.22, 87.03.23, 87.03.24, 87.04.23 and 87.05.40.  In addition, in accordance with Article 6 of the Automotive Sector Agreement
59 signed by Colombia, Ecuador and 
Venezuela in 1999, automobile-related second-hand g oods, components, parts and spare parts may not 
be imported. 
91. Although there has been a noticeable increase,  the economic importance of Colombia's 
textiles and clothing industry remains modest.  As a percentage of GDP, it rose from 0.77 per cent in 
1994 to 1.59 per cent in 2005;  this increase was attrib utable to textiles, whose share rose from 0.69 to 
1.01 per cent of GDP.60  Exports of clothing to the United Stat es have been eligible for the preferences 
granted under the ATPDEA (see Chapter II(5) and (5)(i v)).  According to information provided by the 
USITC, use of the unilateral preferences for products in the clothing sector rose from 0.08 per cent in 2002 to 33.7 per cent in 2005.  Moreover, Colombia  imposed selective safeguard measures in order to 
protect its textiles and clothing industry, mainly from imports from China.
61  Exports by this sector 
and the leather industry are among the major benefici aries of tax rebate schemes such as the CERT 
and the SIEX (Chapter III(3)(iv)(c) and (f)). 
(6) ELECTRICITY  
92. According to data provided by the authorities,  in 2005 Colombia had 13,348 MW. of installed 
capacity of electric power.  In 2005, the gross volume of electricity generated was 50,430 GWh, of which 64.1 per cent was generated in hydroelectric pow er stations, 32.3 per cent in thermal stations 
and 3.4 per cent in smaller stations, while 0.2 per cent came from co-generating stations.  Electricity 
demand rose from 42,300 GWh in 1996 to 48,829 GWh in 2005.  Colombia has moved from an electricity deficit in the early 1990s to a surplus in recent years.
62  Between March 2003 and the end 
of 2005, Colombia exported electri city amounting to US$3È67.8 million.63 
93. In 2005, 42 companies were generating electrici ty in Colombia and private enterprises 
generated around 60 per cent of the electricity.  As  far as marketing is concerned, there were 
57 companies and private enterprises bought and sold some 64 per cent of electric power.  As regards 
transmission, there were 11 companies with a network of 12,248 km64;  84 per cent of the networks 
are public.  The electricity distribution ma rket comprises 32 distributing companies. 
94. The electricity industry has been affected by  problems including attacks on the transmission 
infrastructure and problems of an institutional nature.  A World Bank study65 drew attention to the 
weakness of supervision by the Public Services S upervisory Authority and a number of problems with 
Resolution No. 034 of 2001, particularly the fact th at it has not been applied as a temporary measure 
and that some of the power stations' costs have not  been recognized.  It also noted the considerable 
reliance on the generation of hydroelectricity, the high level of concentration in the sector, and the 
                                                      
58 WTO document G/VAL/26 of 18 May 2000. 
59 See http://comunidadandina.org/normativa/tratprot/conv_automotor.htm. 
60 DANE, National Accounts 1990-2005. 
61 Report of the Sub-Director ate of Trade Practices, 2006. 
62 The information in this sector can be vi ewed at:  http://www.upm e.gov.co/Index2.htm. 
63 Mining and Energy Planning Division (2006). 
64 Despite the expansion of this network, the area not yet interconnected covers 66 per cent of 
Colombian territory. 
65 World Bank, "Colombia:  Desarrollo Económico Reciente en Infraestru ctura".  Viewed at:  
http://wbln0018.worldbank.org/lac/lacinfoclient.nsf/0/21c12b4100ee50e385256fb1004c26af/$FILE/Electricidad_FINAL_WB%20format.pdf#search=%22Co lombia%3A%20Desarrollo%20Econ%. WT/TPR/S/172 Trade Policy Review 
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existence of companies of different sizes, which a ffected the market's functioning.  The study also 
indicated that, over the period 1991-2003, Colo mbia had spent almost US$2,600 million on 
operations to rescue electricity companies. 
95. The authorities acknowledge66 the need to remedy certain aspects of the regulatory framework 
as regards both distribution and marketing of electric ity.  They have indicated that in recent years 
measures have been adopted to  improve supervision in the s ector, achieve better institutional 
coordination and take action to close co mpanies or ensure better management.67 
96. Policies in the electricity sector state that it is  in the national interest to attract private 
Colombian and/or foreign investors to the vari ous activities.  The law provides that private 
participation requires a concession or permit granted by the State.  The sector's legal framework 
contains a number of provisions that seek to en courage competition, requiring that no company may 
provide more than one fourth of the inst alled capacity generated and/or marketed.68  The law allows 
any seller or generator that so requests it free access to electricity transmission and distribution 
networks. 
97. The Ministry of Mining and Energy (MME ) grants concessions for the generation, 
interconnection and transmission networks among re gions.  The regional authorities give concessions 
for regional transmission and municipalities grant th e concessions for distribution, provided that there 
is no entity prepared to provide such services on the same terms.69  The term of a concession contract 
is determined by the entity granting it in each case and may not exceed 30 years, renewable for a 
maximum of 20 years. 
98. At the institutional level, the electricity sector is  administered mainly through the Ministry of 
Mining and Energy, which is responsible for sectoral policies.  The Unidad de Planeación Minero 
Energética – UPME (Mining and Energy Planning Divisi on) is responsible fo r developing strategic 
plans and energy expansion.  Regulation and defin ition of the methodology used to calculate rates and 
promote free competition are the responsibility of the CREG.  Other bodies involved are the Administrador del Sistema de Intercambios Comerciales  – ASIC (Administrator of the Commercial 
Interchange System), responsible for administering the wholesale energy market;  the Centro 
Nacional de Despacho  – CND (National Dispatching Centre), responsible for monitoring operation of 
the energy system;  the Consejo Nacional de Operación – CNO (National Operations Council), 
composed of representatives of companies in the sector, whose task it is to deal with technical aspects;  
and the Comité Asesor de Comercialización  – CAC (Marketing Advisory Committee), composed of 
companies selling electricity (as well as generating and/or distributing electricity and independent), 
whose role is to assist the CREG in monitoring an d revising the commercial aspects of the wholesale 
electricity market. 
99. The Law on Household Public Services
70 is intended to create a market-oriented and 
competitive environment and to regulate the par ticipants' trade practices.  The Electricity Law 
provides that activities should be divided into four groups (generation, transmission, distribution and 
marketing), prohibits vertical integration (with the exception of those companies set up prior to 
                                                      
66 Ministry of Mining and Energy (2006). 
67 According to data furnished by the authorities, over the period 2002-2006 three companies were 
liquidated (Electrificadora del Tolima, Electrificadora del Chocó and Archipelago's Power & Light).  In 2006, 
the Household Public Services Supe rvisory Authority (Cauca electric powe r stations) took control of one 
company. 
68 CREG Resolution No. 001 of 2006. 
69 Article 56, Law No. 143 of 1994. 
70 Laws Nos. 142 and 143 of 11 July 1994. Colombia WT/TPR/S/172 
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enactment of Law No. 142 of 1994) and guaran tees free access to transmission and distribution 
networks to any seller, generato r or user that so requests. 
100. The methodology used to fix rates takes into account the specific characteristics of each 
activity and whether there is a natural monopoly or competition.  As far as distribution and 
transmission are concerned, the methodology seeks to compel companies to operate and maintain the 
network efficiently while at the same time guarant eeing the principle of free access to networks.  In 
the case of distribution, there is greater integration of operators with marketi ng agents.  Networks may 
be freely established and expansion is the responsibility of each distributor (network operator, OR).  
ORs may use the regional transmission and local dist ribution systems (operating at voltage of less 
than 220 kV.).  The criteria for each distribution system are different acco rding to its structure, 
particularly the rural-urban structure of demand. 
101. Pursuant to Law No. 143 of 1994, users are divided into regulated users71 and non-regulated 
users.72  Electricity provided by public service companies (sellers) to final users whose rates are 
regulated must be purchased by these companies on the wholesale electricity market from those offering the lowest prices.  Electricity rates for re gulated users are determined according to a regime 
of regulated freedom.  The CREG establishes the methodology for calculating rates and companies 
may determine the maximum price for the services th ey offer in accordance with it.  The price must 
reflect the costs of the production chain. 
102. The Law on Public Services provides for a subs idies and contributions regime under which 
only residential users in the most vulnerable sectors (1, 2 and 3) according to a subsistence level of 
consumption have the right to receive subsidies.  These users are subsidized through contributions 
from users in the higher-income sectors (5 and 6) and industry and business (regulated or non-regulated).  The latter users contribute a maximum of 20 per cent of the cost of providing the service. 
103. Provisions on the import and export of electricity are to be found in Decision No. 536 of the 
Andean Community, which prohibits the application of tariffs or other restrictions on imports or 
exports of electricity among members of the Andean Community.
73  Imports and exports must be 
through a generating and/or marketing company est ablished in Colombia and through the wholesale 
market.74  Colombia has electricity interconnections  with Ecuador and Venezuela with a total 
effective capacity of 250 MW. and 270 MW. respec tively.  The exchange of electricity with non-
members of the Andean Community  is regulated by the CREG. 
(7) SERVICES  
104. In 2005, services accounted for around 63 per cent of the GDP, almost five percentage points 
less than in 1997.75  This is a reflection of the fairly si zeable reduction in the GDP contribution of 
"financial, insurance, property and business services establishments".  In 2005, imports of business 
services amounted to US$4,755 million and exports to US$2,666 million.  Imports rose at an average 
rate of 3.9 per cent between 1997 and 2005, and exports at an average of 3.3 per cent;  both imports 
and exports showed marked fl uctuations over this period. 
                                                      
71 A natural or legal person that purchases elect ric power at the rates determined by the CREG. 
72 Natural or legal persons whose maximum demand exceeds 0.1MW or 55,000kWh monthly and 
whose rates are freely determined betwee n the user and the service provider. 
73 Decision No. 536 of the Andean  Community of 19 December 2002. 
74 CREG Resolution No. 057 of 19 May 1998. 
75 Figures based on data provided by the Ministry of Trade, Industry and Tourism. WT/TPR/S/172 Trade Policy Review 
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105. Colombia adopted specific commitments in 5 of the 12 GATS sectors:  business services, 
telecommunications services, construction and rela ted engineering services, financial services, 
tourism services and travel-related services (Table AIV.3).  It took part in the negotiations on 
telecommunications and financial services after the Uruguay Round.  Its commitments in both these 
areas appear in the Fourth and Fifth Protocols to the GATS. 
106. As part of its horizontal commitments under the GATS, Colombia reserved the right to 
maintain restrictions on ownership of property by foreigners in border regions, along the Colombian 
coastline and in the islands of the San Andrés and Providencia archipelago.  Colombia undertook to 
allow up to 10 per cent of ordinary employees and 20 per cent of skilled employees or specialists, 
administrative staff or persons in posts of r esponsibility in companies employing more than 
10 persons to be foreigners. 
107. Colombia established exemptions to the prin ciple of most-favoured-nation treatment as 
regards telecommunications, audiovisual servi ces, financial services and land transport.76 
108. During the services negotiations in the Doha R ound, Colombia submitted an initial offer in 
September 2003 and a revised offer in July 2005.77 
109. Liberalization of trade in services is one of the key elements of the common market which 
members of the Andean Community are striving to create.  Since 1998, Colombia and the other Andean Community members have had a general fram ework of principles and rules for liberalization 
of trade in services in the Andean region, contained in Decision No. 439.
78  The liberalization process 
provided in this Decision is based on a negative list approach under which member countries may 
only maintain measures contrary to the market access and national treatment provisions in Decision 
No. 439 if the measures are listed in an inventory.  The inventories of measures maintained by each country were adopted in October 2001.
79  The time-frame in Decisi on No. 439 for lifting these 
measures was 1 January 2006.  Nevertheless, in adopting Decision No. 629, the Andean Community 
member countries agreed that inasmuch as some  sectors might require special treatment it was 
necessary temporarily to suspend the obligation to abolish the measures contained in their respective 
inventories.  Moreover, Decision No. 629 determ ined a programme of work to further the 
liberalization or community harmonization of ru les in specific sectors identified by members.80 
110. Colombia's inventory comprises 75 measures, ni ne of which apply to all sectors.  Around 
30 per cent of the remaining measures relate to business services, 23 per cent to financial services, 21 per cent to transport and 17 per cent to comm unications.  The remainder concern educational 
services, environmental services and tourism services. 
(i) Telecommunications 
(a) Market features 
111. Colombia's telecommunications sector has change d radically since 1996, partly as a result of 
the progressive liberalization measures adopted as of  the mid-1990s (Table IV.3).  The process has 
                                                     
 
76 WTO documents GATS/EL/20 of 15 April 1994 and GATS/EL/20/Suppl.1 of 28 July 1995. 
77 The initial offer is contained in WTO docu ment TN/S/O/COL of 18 September 2003. 
78 Decision No. 439 of the Andean Community of 11 June 1998. 
79 Decision No. 510 of the Andean Community of 30 October 2001. 
80 Article 2, Decision No. 629 of the Andean Community.  Decision No. 634 establishes the time frame 
for the programme of work. Colombia WT/TPR/S/172 
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been accompanied by significant flows of private in vestment and diminution of  the role traditionally 
played by the State in supplying telecommunications services. 
112. Some 30 companies provide local telephone services based on use of facilities.  Around 
87 per cent of the total number of lines belong to three companies:  Telecom, EPM and ETB.  The 
State was the majority shareholder in Colo mbia Telecomunicaciones up to early 2006 when 
Telefónica Internacional (Spain) took over the comp any by buying 50 per cent plus one of its shares.81  
Colombia Telecomunicaciones was set up in 2003 when  it took over the operations of the Empresa 
Nacional de Telecomunicaciones and its associated companies, whose liquidation was decreed that 
year.82  The government of Bogotá is the majority shareholder in ETB and the government of 
Medellín is the sole owner of EPM. 
113. Although there are a large number of local telephony operators, there has only been 
competition among them in large markets such as B ogotá, Cali and Barranquilla.  This is partly 
because many operators have not a ttempted to penetrate new markets.83 
114. In addition to Telecom, two operators, ETB  and Orbitel, provide facilities-based long-
distance telephony services (national and in ternational).  The Empresa Nacional de 
Telecomunicaciones had a monopoly of this service up to  1998.  The share of its successor, Colombia 
Telecomunicaciones, is 57 per cent of domestic  long-distance traffic and some 45 per cent of 
international long-distance calls.  Orbital is owned by EPM.  The authorities have indicated that the 
cost of national long-distance calls in Colombia is high in comparison with other Latin American 
countries. 
Table IV.3 
Telecommunications indicators, 1996-2004 
 1996 1997 1998 1999 2000 2001 2002 2003 2004 
Investment          
 Total (Col$ billion) 1,584 2,734 3,644 3,203 2,256 2, 662 2,534 2,028 1,581 
 Public (%) 44.8 47.3 37.8 62.4 35.2 36.0 42.3 55.6 45.7 
 Private (%) 55.2 52.7 62.2 37.6 64.8 64.0 57.7 44.4 54.3 
Local telephony          
 Number of lines ('000) 4,645 5,433 6,587 6,655 7,171 7,372 7,522 7,850 7,714 
 Density (lines per 100 inh) 11.82 13.56 16.13 16.00 16.94 17.12 17.16 17.61 17.02 
 Revenue (US$ million) 927 1,122 1,117 1,222 1,239 1,230 1,327 1,363 1,683 
 Number of operators .. .. .. 38 39 40 40 30 27 
Long-distance telephony 
(national and international)          
 Calls (millions of minutes) 4,709 5,100 6,233 6,434 3,614 3,580 3,384 3,190 2,403 
 Revenue (US$ million) 1,112 1,263 1,117 825 789 612 530 539 539 
 Number of operators 1 1 3 3 3 3 3 3 3 
Table IV.3 (cont'd) 
                                                      
81 Ministry of Communications (2006).  " Telefónica Internacional es el nuevo socio estratégico de 
Telecom " (Telefónica Internacional is Telecom's new strate gic partner), information online.  Viewed at:  
http://www.mincomunicaciones.gov.co/mincom/src/index. jsp?page=./mods/contenido/noticia_user_view&id=1
91 [13 April 2006]. 
82 Decree No. 1615 of 2003. 
83 World Bank (2004a). WT/TPR/S/172 Trade Policy Review 
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 1996 1997 1998 1999 2000 2001 2002 2003 2004 
Mobile telephony and personal 
communications services          
 Number of users ('000) 410 993 1,780 1,963 1,833 2,926 4,088 5,523 8,394 
 Density (lines per 100 inh) 1.04 2.48 4.36 4.72 4.33 6.79 9.33 12.39 18.52 
 Cost of a one-minute local call 
 (US$) .. .. 0.78 0.43 0.23 0.17 0.12 0.13 0.11 
 Revenue (US$ million) 284 820 997 683 528 359 553 834 1,528 
 Number of operators 2 2 2 2 2 2 2 3 3 
Number of internet users ('000) .. .. 433 664 878 950 2,000 3,050 3,586 
.. Not available. 
Note: The revenue includes interconnection costs. 
Source : WTO Secretariat, based on information provided by the Colombian Authorities. 
115. At the beginning of 2006, three companies provided mobile telephony services in Colombia:  
Colombia Móvil, Comcel and Telefónica Móvil.  The majority of the capital in Comcel and 
Telefónica Móvil is foreign owned.  Colombia Móvil is owned by EPM and ETB and has been 
competing in the mobile telephony market sin ce 2003 when it was given a concession for personal 
communications services.  The Colombian mobile  telephony market has shown dynamic growth, 
particularly since 2000.  Between 2000 and 2005, the average annual increase in the number of users was around 60 per cent (Table IV.3).  Comcel's sh are of the mobile telephony market has risen to 
some 64 per cent;  Telefónica Móvil supplies 27 per cent of the market and Colombia Móvil 9 per 
cent. 
116. There is relatively keen competition in th e mobile telephony market.  Between 2000 and 
2004, the cost of a local call from a mobile telephone  fell by 75 per cent (Table IV.1).  As mobile 
telephony and fixed telephony are eas ily interchangeable in Colombia, competition in the mobile 
telephony market exerts competitive pressure on fixed telephony operators.
84 
(b) Legal framework 
117. As part of its commitments at the WTO, Colo mbia offers free competition in facilities-based 
local voice telephony services and data transmission ser vices for public use.  It also offers free 
competition in voice telephony services and other basic services aimed at selected groups of users.  
Facilities-based public national and international long-distance voice telephony services are restricted 
to the public operator;  new operators are allowed to  enter when there is a proven economic need.  As 
far as mobile telephony services are concerned,  Colombia undertook to liberalize the regional 
duopolies in September 1999;  since then, the entry of new operators has been subject only to technical criteria.  Colombia undertook to allo w a limited number of suppliers of personal 
communications services by 2000 and suppliers of facilities-based paging and trunking services by 
mid-1997.  It also undertook to provide satellite  capacity on geostationary satellite systems.  
Colombia's commitments refer to foreign capital par ticipation restricted to 70 per cent in the case of 
all telecommunications service providers.  Colo mbia undertook to respect the Reference Paper 
regarding the regulatory principles. 
118. Law No. 72 of 1989 lays down the general principles for the organization of 
telecommunications.  Switched basic telephony servi ces and national and intern ational long-distance 
services are subject to a special regime, known as the "household" public services regime, provided in Law No. 142 of 1994.  Special regimes have also been established for each of the other telecommunication services.  In this respect, the Wo rld Bank points out that "the regulatory dispersion 
                                                     
 
84 Económica Consultores Ltda (2002). Colombia WT/TPR/S/172 
 Page 109 
 
 
existing in Colombia, together with the artificia l classification between household and non-household 
services, has been an obstacle to allowing the country  to take full advantage of the rapid technological 
developments and the convergence of telecommuni cations services and networks elsewhere in the 
world".85  The authorities recognize this problem and have indicated that they are working on the 
preparation of a single decree compiling the regulations in effect in the telecommunications sector in 
order to give investors and operators an  instrument that guarantees legal stability. 
119. The Constitution gives the State responsibility for management and control of the 
electromagnetic spectrum.86 
120. The Ministry of Communications is responsib le for formulating telecommunications policy.87  
It also administers and controls the radioelectri c spectrum supervises and monitors the concessions 
regime.  Regulation is the responsibility of the Comisión de Regulación de Telecomunicaciones -  
CRT (Telecommunications Regulatory Commission).88  The Supervisory Authority for Household 
Public Services is in charge of supervising and monitoring entities which provide services covered by 
the household public services regime to the extent  that these affect consumers "directly and 
immediately".89  The Supervisory Authority for Industry a nd Trade is responsible for supervising and 
monitoring the competition and consumer pr otection regimes for non-household services 
(Chapter III(4)(ii))90 
121. In the context of its efforts to ensure that th e regulatory process in this sector is transparent, 
the CRT makes its annual regulatory programme av ailable to the public.  It also has a public 
consultation procedure prior to adopting regulations. 
122. There are no legal limitations on participation of  Colombian or foreign private capital in the 
supply of telecommunications services.  Foreign co mpanies must set up a subsidiary in order to 
operate in Colombia.  Deliberately reversing the direction of international long-distance traffic 
(known as "call back") is not allowed.91 
123. A concession is generally required in order to provide facilities-based telecommunications 
services.  Concessions are granted for the supply of specific services and the requirements to be met 
by companies in order to obtain such concessions depend on the type of service they seek to supply 
(Table IV.4).  Licences to supply value-added servi ces are automatically granted to companies which 
meet the legal requirements.92 
                                                      
85 World Bank (2004a). 
86 Article 75 of Colombia's Constitution. 
87 Article 1, Decree No. 1620 of 2003. 
88 Articles 73 and 74 of Law No. 142 of 1994, Article 15 of Law No. 555 of 2000, Article 37 of Decree 
No. 1130 of 1999, Article 1 of Decree No. 25 of 2002, and Article 1 of Decree No. 1857 of 2002. 
89 Article 370 of Colombia's Political Constitution an d Articles 79 and 80 of Law No. 142 of 1994. 
90 Article 10, Law No. 555 of 2000. 
91 Law No. 671 of 2001. 
92 Article 5, Decree No. 600 of 2003. WT/TPR/S/172 Trade Policy Review 
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Table IV.4 
Legal framework for the operation of telecommunications services, May 2006 
Service Regime for granting 
concessions Comments Principal legislation 
Switched local basic 
public telephony No operating concession 
is required The company must be set up as a public service company. Law No. 142 of 1994;  
CRT Resolution 
No. 087 of 1997 
Switched long-distance basic public 
telephony (national and international) Concessions are 
automatically granted to 
companies which meet the legal requirements The company must be set up as a public service company.  
The concession costs US$150 million;  as of August 2007, 
the Government will determine the cost of the concession based on a study by the Ministry of Communications.  
Concessions are granted for 10 years, renewable for a 
further 10 years.  In August 2005, the requirement to have a strategic partner and a minimum number of lines in 
service before seeking a concession was abolished. Decree No. 2926 of 
2005;  Decree 
No. 2542 of 1997;  CRT Resolution 
No. 087 of 1997 
Mobile telephony Granted following 
bidding procedure Two concessions were granted for each of the three areas 
into which Colombia is divided;  the concessions were 
given for 10 years, renewable for a further 10 years;  no 
additional concessions have been granted. Law No. 37 of 1993;  
Law No. 422 of 1998;  
CRT Resolutions 
No. 469 and No. 489 of 2002 
Personal communications services Granted following 
bidding procedure A concession is granted for each  of the three areas into 
which Colombia is divided;  there is a legal requirement to grant additional concessions  as of 2003;  nevertheless, 
by mid-2006, no new concessions had been granted.  The 
Ministry of Communications determines the cost of a 
licence on the basis of the principle of "economic balance" with mobile telephony operators.  Concessions 
are granted for 10 years, renewable for a further 10 years. Law No. 555 of 2000;  
Decree No. 575 of 2002;  CRT Resolutions No. 469 
and No. 489 of 2002 
Source : WTO Secretariat. 
124. Operators providing long-distance services must make available to the public at least one 
wholesale offer allowing the resale of their services,  in accordance with the criteria defined by the 
CRT.93  The authorities have indicated that, in mid-2006, the CRT was developing a regulatory draft 
in this respect. 
125. The establishment of private telecommunications networks does not require any authorization 
from the Ministry of Communications unless they use the radioelectric spectrum or Colombia's 
coordinated satellite resources.94  Private networks may not be used to provide services to third parties 
nor may they be connected to the pub lic network or other private networks.95 
126. The provisions on interconnection are contained in CRT Resolution No. 575 of 2002 and 
reflect Colombia's commitments at the WTO.  The legislation sets a time-limit of 30 days after 
submission of an interconnection application durin g which the operators negotiate the terms of the 
interconnection.  When these have been negotiated, the interconnection agreement must be sent to the 
CRT within ten days.96  The CRT may, either ex oficio or at the request of an interested party, oblige 
the operator to allow provisional interconnection to its network while the interconnection negotiations 
are being conducted.  If the operators do not reach agreement within the specified time-frame, the 
CRT decides on the interconnection terms within 30 da ys, unless technical tests have to be carried 
out.  The legislation provides that interconnection agreements are public. 
127. When an interconnection application is submitte d, the CRT is empowered to lay down special 
obligations to be met by operators in a dominan t position, including an obligation to provide an 
unbundled loop or any other element of its network.97  The criteria to be used by the CRT when 
                                                      
93 Article 6, Decree No. 2926 of 2005. 
94 Article 3, Decree No. 930 of 1992. 
95 Ibid., Article 1. 
96 Articles 4.4.1 and 4.4.1.22, CRT Resolution No. 087 of 1997. 
97 Ibid., Article 4.2.3. Colombia WT/TPR/S/172 
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determining whether an operator is in a dom inant position are set out in the legislation.98  Since 1997, 
the CRT has imposed obligations regard ing unbundling of loops on one occasion.99 
128. Operators of switched local basic telephony classified as dominant according to Resolution 
CRT No. 087 of 1997, i.e. those whose market share is 60 per cent or more, must apply the criteria 
and methodologies determined by the CRT when fixing their rates.  These rates must be registered 
with the CRT.  Other operators of switched basic public telephony (national and international local 
and long-distance) and mobile telephony are free to set their rates.100  These rates must also be 
registered with the CRT. 
129. Cross-subsidies between basic services and value-added services are not allowed.101  
Operators of switched local basic public telephony ser vices must subsidize the rates applicable to low-
income customers using revenue earned from the rates applied to high-income customers and 
industrial and business customers.102  Companies providing local and long-distance switched basic 
telephony services must keep sep arate accounts for each service.103 
130. Operators of specific services must meet the unive rsal access obligations, either in the form of 
special payments or by providing services in sp ecific areas.  There is no asymmetry between the 
obligations on public and private operators, including  foreigners.  There is a Communications Fund 
used to finance social telecommunications projects and to support the activities of the Ministry of 
Communications, including building up its administrative capacity.104  The Fund's resources come 
from the payments made by operators for concession s and use of the radioelectric spectrum.  The 
Fund's resources are Col$353,100 million (December 2005). 
131. The value-added tax applicable to cellular m obile telephony services is 20 per cent, compared 
to 16 per cent for all other telecommunications services.105 
(ii) Financial services 
(a) Market features and commitments at the WTO 
132. The number of financial establishments has fa llen sharply, from 253 in 1996 to 118 in early 
2006, mainly as a result of the closure or merger of  a number of financial establishments when the 
sector was in crisis (1998-2002) and the subseque nt consolidation around certain commercial banks 
(2003-2005).106  This process has led to greater concen tration in the market (Table IV.5).  
Bancolombia and the banks belonging to the Aval  Group hold 42.7 per cent of the assets in the 
banking sector.  Two insurance companies hold around 40 per cent of those in the life insurance branch and four have around one half of the assets in the general insurance branch. 
133. The State's involvement in the financial mark et has greatly diminished as a result of the 
reorganization and rationalization strategy for State participation in financial establishments adopted 
                                                     
 
98 Ibid., Article 4.2.3.2. 
99 CRT Resolution No. 1302 of 2005. 
100 Title V, Chapter I, CRT Resolution No. 087 of 1997. 
101 Article 27, Decree No. 1794 of 1990. 
102 Article 87, Law No. 142 of 1994 and Article 5.3.1, CRT Resolution No. 087 of 1997. 
103 Article 18, Law No. 142 of 1994. 
104 Chapter IV of Decree No. 1130 of 1999. 
105 Second paragraph of Article 468-3 of the Tax Code. 
106 The term "financial establishments" covers ba nks, commercial financing companies, financial 
corporations, trust companies and ge neral and life insurance companies. WT/TPR/S/172 Trade Policy Review 
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under the 2002-2006 Development Plan.  The implem entation of the strategy has meant that only 
State banks continued to operate in May 2006 (B anagrario and Granbanco).  Five State-owned 
financial establishments were being liquidated.107 
134. The financial stability of the banking sector show ed abrupt deteriorati on in 1998-1999 when a 
number of adverse macroeconomic factors triggere d the end of a credit boom which coincided with 
weak bank regulation and s upervision (Chapter 1).108  The Government responded to the financial 
crisis by a mortgage debtor relief programme as well as incentives for recapitalization of financial 
establishments.  This support was channelled through the Fondo de Garantías de Instituciones 
Financieras  - FOGAFIN (Financial Institutions Guarantee Fund).  The Fund acted to liquidate 
35 financial establishments between 1998 and 2004.  At the end of 2005, 11 privately owned financial 
establishments were being liquidated. 
Table IV.5 
Structure of the financial sector, February – March 2006 
Establishment Number of 
establishments Assets 
Loan establishments 53 138,379  (Col$ billion)  
  As a percentage of the total assets of loan 
establishments 
Banks 21 87.6 
 Colombian private capital 12 57.7 
 Foreign private capital 7 19.0 
 Public capital 2 10.9 
Financial corporations 2 3.9 
Commercial financing companies 24 8.1 
Cooperatives 6 0.5 
Insurance companies   101 16,657 (Col$ billion) 
  As a percentage of the to tal assets of insurance 
companies  
Life insurance companies 20 47.0 
General insurance companies 25 41.7 
Capitalization companies 5 10.2 
Insurance and reinsurance brokers 56 1.1 
Other financial institutions    30,528  (Col$ billion) 
  As a percentage of the total assets of other 
financial institutions 
Special official institutionsb 10 75.8 
Administrators of pension and retirement funds 6 3.2 
Trust companies 28 2.6 
Stockbrokers 79 14.2 
Foreign exchange dealers 11 0.6 
Other establishments 28 3.5 
Total  185,564  (Col$ billion) 
a Excluding establishments being liquidated. 
b Including BANCOLDEX and FOGAFIN. 
Source : Colombian Financial Supervisory Authority. 
135. The prudential indicators for banking have im proved substantially since the crisis in 
1998-1999.  The risk-weighted capital adequacy ra tio rose to 13.8 per cent in 2004 compared with 
11.3 per cent in 1999.  Non-performing loans fell from 12.2 per cent in 1999 to 2.6 per cent in early 
                                                      
107 Banco Central Hipotecario, Fiducia ria del Estado, Instituto de Fomento Industrial, Banco Cafetero 
and Banco del Estado.  FOGAFIN (2006). 
108 IMF (2005a). Colombia WT/TPR/S/172 
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2005.  Moreover, since 2001 financial establishm ents have recorded increased profits.  The 
improvements in the prudential indicators are to a la rge extent attributable to the reforms in the 
regulation and supervision framework.109  The authorities have indicated that the Financial 
Supervisory Authority, the body responsible for monitoring and supervising the sector, is 
implementing risk-based supervision and that, in mi d-2006, it was working on draft regulations to 
bring the capital adequacy rules into line with  those defined in the Revised Framework on 
International Convergence of Capital Measurement and Capital Standards of the Basel Committee on 
Banking Supervision (known as Basel II). 
136. The banking intermediation margin fell from 9 per cent in 1995 to around 7 per cent in 
2005.110  This partly reflects resurgent competition and a marked improvement in the quality of 
portfolios in recent years.  The lower loan risk of companies and consumers as a result of growing 
macroeconomic stability has also helped to narrow the margin.  Nevertheless, measures such as the 
tax on financial transactions and mandatory invest ment by loan establishments, for example, in 
agricultural development instruments, has meant that the intermediation margin has not been 
narrowed still further and has meant that the cost of credit has remained at a relatively high level (see 
also Chapters I and IV(2)). 
137. The nominal value of premiums in the insura nce industry, including insurance cooperatives, 
amounted to Col$6,433 billion in 2005, some US$2,816 million.  Just over 60 per cent is in the general insurance branch while the rest relates to life insurance. 
138. In its commitments at the WTO, Colombia incl uded an exemption from the principle of most-
favoured-nation treatment for financial services by making access to the financial services market by 
foreign suppliers subject to the existence of "satisfactory possibilities of access" for Colombian 
suppliers in the country of origin of the foreign suppliers.  Colombia's sp ecific commitments indicate 
that authorization for financial establishments is subj ect to an economic needs test.  It is not allowed 
to establish branches.  The supply of financial services requires prior Government approval.
111  
Colombia undertook not to impose limitations on cross-border supply or consumption abroad for 
reinsurance and retrocession services.  The commitments on the presence of natural persons do not go 
beyond those in the horizontal commitments. 
(b) Banking services 
139. The Ministry of Finance and Public Credit is  responsible for "taking action" regarding 
financial and insurance activities in accordance w ith the criteria set out in Law No. 35 of 1993 and 
Law No. 964 of 2005.  It is involved in regulatin g banking activities and those of other financial 
establishments "in coordination with" the Financ ial Supervisory Authority or the Cooperative 
Economy Supervisory Authority.112  The Financial Supervisory Authority arose from the merger of 
the Banking Supervisory Authority and the Securities Supervisory Authority in 2005.113  Its main task 
is to monitor and control anti-competitive practic es and establishments composing the financial 
system inter alia .114  It may issue resolutions, external circulars and circular letters to the 
                                                      
109 IMF (2005a). 
110 ANIF (2006). 
111 WTO document GATS/SC/20/Suppl.3 of 26 February 1998. 
112 Article 3, Decree No. 246 of 2004. 
113 Law No. 964 of 2005 and Decree No. 4327 of 2005. 
114 Articles 55, 63 and 98 of the Basic Statutes of the Financial System. WT/TPR/S/172 Trade Policy Review 
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establishments subject to its superv ision.  The Bank of the Republic is  the highest exchange, monetary 
and credit authority (see Chapter I(2)(iii)).115 
140. Since 1997, Colombia has made a number of reforms to the legal framework of its banking 
sector (Table AIV.4).  The authorities have indi cated that Laws No. 510 and No. 546 of 1999 were 
enacted in the context of the 1998 financial crisis.  Their purpose is to restore users' confidence in the 
financial system by amending the ownership regi me and the requirements for the establishment of 
financial institutions and by creating a new long-te rm mechanism for housing loans.  The authorities 
have indicated that Laws No. 795 of 2003 and No. 964 of 2005 were adopted subsequently in order to 
strengthen cooperative management of financial institutions, author ize new operations and promote 
security in the payments and securities clearing systems. 
141. Colombian residents may make depos its in banks abroad without an  official authorization, but 
they must register with the Bank of the Republic in order to obtain a loan from a bank abroad.116  
There are no restrictions on the amount of transac tions with establishments abroad.  Banks abroad 
may not promote their products in Colombia unless they are established there.117 
142. There are no legal limitations on capital holdings including capital from abroad, in 
commercial banks.118  Foreign banks may set up a subsidiary or open an agency in Colombia, but not 
a branch.  All banks domiciled in Colombia, in cluding subsidiaries of foreign banks, must be 
established in the form of commercial public limited companies or cooperative associations.119 
143. There are no legal limitations on the number of banks that may operate in Colombia.  The 
legislation does not limit either the number of agencies which banks may open once they have 
become established in Colombia.  The Financial S upervisory Authority must be informed when an 
agency is opened or closed.  The services which banks  may offer are set out in the Basic Statute of the 
Financial System.120  The services offered by banks do not differ according to the origin of their 
capital. 
144. Financial institutions, with the exception of fina ncing corporations, may have a holding in the 
capital of:  financial services companies (i.e. trust companies), stockbrokers, general deposit 
warehouses and companies managing pension and retirement funds;  as well as in companies 
providing technical or administrative services, including security companies, management of custodial accounts and related services, collecti on services and companies providing computer 
systems and services.
121  Their holdings in financial services companies may not be less than 51 per 
cent, except in the case of deposit warehouses.  Total investment by a bank in other companies may 
not exceed 100 per cent of its capital, cap ital reserves and capital revaluation account. 
145. Before setting up and operating a bank in Colomb ia, including the subsidiary of a foreign 
bank, an authorization permit must be obtained from the Financial Supervisory Authority.  The 
requirements for the permit are set out in the Basic Statute of the Financial System and include "a study proving satisfactorily that the company is viable".
122  The requirements do not differ according 
to the origin of the capital, except in the case of applications to set up a subsidiary of a foreign bank, 
                                                      
115 Article 16, Law No. 31 of 1992. 
116 Articles 24 and 55, Bank of the Republic Resolution No. 8 of 2000. 
117 Article 1, Decree No. 2951 of 2004. 
118 Article 91 of the Basic Statute of the Financial System. 
119 Ibid., Article 53. 
120 Ibid., Article 7. 
121 Paragraph 2.2, Chapter VII, Title I, External Circular No. 007 of 1996. 
122 Article 53, of the Basic Statue of the Financial System. Colombia WT/TPR/S/172 
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in which case the Financial Supervis ory Authority may seek information in order to be sure that the 
subsidiary will be the subject of supervision on the pa rt of the competent foreign authority jointly with 
the parent company, "in accordance with generally accepted international principles".123  T h e  
authorities have indicated that no information is  available on the number of applications for 
authorization permits received or rejected. 
146. The Financial Supervisory Authority is required to  publish two notifications of an application 
to establish a bank so that interested parties may put forward objections.  It has six months in which to 
issue the authorization permit.124  The head of the Authority must  refuse to issue a permit when an 
application does not meet the requirements laid down in the law or when "in his view, the applicants 
have not provided satisfactory proof of the charact er, responsibility, suitability and financial solvency 
of the persons taking part in the operation in su ch a way that they inspire the Authority with 
confidence regarding the way in which they would manage and administer [t he bank]".  The Legal 
Basic Circular specifies the documents to be submitted to allow the head of the Authority to implement this provision.
125  An authorization permit issued to a bank by the Financial Supervisory 
Authority is for an indefinite  period and may not be assigned. 
147. In 2006, the minimum capital required to set up a bank in Colombia was Col$56,823 million 
(approximately US$24.8 million).126  The purchase of 10 per cent or more of the shares in any bank 
by Colombian or foreign investors requires a pproval by the Financial Supervisory Authority.127 
148. It is also necessary to obtain an authorization permit from the Financia l Supervisory Authority 
in order to open an agency of a foreign bank.  The requirements for such a permit are set out in 
Decree No. 2951 of 2004.128  Agencies must have a representa tive in Colombia.  There are no 
minimum capital requirements for agencies.  The au thorities have indicated that no information is 
available on the number of applications for authorization permits received or rejected. 
149. The Financial Supervisory Authority approves a current bank interest rate each month on the 
basis of the information supplied by financial establis hments for the previous month.  Banks' interest 
rates may not exceed one and a half times the current bank interest rate.  Interest on housing loans is 
also subject to maximum levels dete rmined by the Bank of the Republic.129 
150. FOGAFIN established deposit insurance.130  The maximum amount insured is Col$20 million 
(approximately US$8,750) per amount owing (irrespec tive of the number of debtors) and per person 
(irrespective of the number of the persons' debts).131 
151. The Basic Statute of the Financial System oblig es banks to adopt control mechanisms in order 
to ensure that their transacti ons are not used to launder money.132  Such mechanisms must meet the 
minimum requirements set out in External Circul ar No. 040 of 2004 of the Supervisory Authority.133  
                                                      
123 Idem .  Article 53  
124 Idem . 
125 Chapter I, Title I, External Circular No. 007 of 1996. 
126 Article 80 of the Basic Statute of the Financial System and Law No. 795 of 2003. 
127 Article 88 of the Basic Statute of the Financial System. 
128 Ibid., Article 3. 
129 Law No. 546 of 1999. 
130 Article 323 of the Basic Statute of the Financial System. 
131 Resolution No. 5 of 2001 of the Governing Board of the Financial Institutions Guarantee Fund. 
132 Articles 102-07. 
133 Chapter XI, Title I. WT/TPR/S/172 Trade Policy Review 
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The Financial Information and Analysis Division, u nder the Ministry of Finance and Public Credit, 
draws up and implements policies to det ect, prevent and combat money laundering. 
152. Since 1998, Colombia has imposed a tax on financial transactions.134  The tax was intended to 
be a temporary mechanism to finance the emerge ncy measures adopted dur ing the crisis in the 
financial sector.  It should have been abolished in  December 1999, but this has been postponed.  The 
tax rate is 0.4 per cent. 
(c) Insurance services 
153. Colombia has introduced a number of reforms to the legal framework for the insurance sector 
since 1997 (Table AIV.5). 
154. The legal regime does not allow Colombian re sidents to conduct insurance operations in 
Colombia with companies established abroad if th ese are not authorized to engage in insurance 
activities in Colombia.  The Financial Supervisory Authority may "for reasons of general interest" 
authorize these companies to conduct insurance activities in Colombia without necessarily being 
established there.135 
155. Colombian residents may conduct reinsurance ope rations with companies established abroad 
provided that these reinsurers are listed in the Re gister of Foreign Reinsurers and Reinsurance 
Brokers kept by the Financial Supervisory Authority.136  The criterion taken into account by the 
Financial Supervisory Authority when examining an application for inclusion in the Register is the 
status given to the company by an  "eligible" international agency.137  The Legal Basic Circular lists 
the eligible agencies and the criteria to be met by agencies that are not listed.138  There are 
173 companies listed in the Register (May 2006);  nine of these have an agency in Colombia. 
156. There are no legal limitations on private ca pital holdings, including capital from abroad, in 
insurance companies.139  Foreign insurance companies may set up a subsidiary or open an agency in 
Colombia, but not a branch.  All insurance compan ies domiciled in Colombia, including subsidiaries 
of foreign companies, must be established in the form of commercial public limited companies or 
cooperative associations.140 
157. There are no legal limitations on the number of insurance companies that may operate in 
Colombia.  The number of agencies which insurance companies established in Colombia may open is 
not limited either.  The Financial Supervisory Author ity must be informed when an agency is opened 
or closed.  There are no differences between the types of service that insurance companies with 
Colombian or foreign capital may supply. 
158. An authorization permit must be obtained from the Financial Supervisory Authority in order 
to establish and operate an insura nce company in Colombia.  The requirements for the permit and the 
procedures followed by the Financial Supervisory Au thority when granting it are the same as those for 
                                                      
134 Article 29 of Decree No. 2331 of 1998;  Law No. 633 of 2000;  and Law No. 863 of 2003. 
135 Articles 39, 108 and 188 of the Basic Statute of the Financial System. 
136 Fifth Chapter, Title I, External Circular No. 00 7 of 1996 of the Financial Supervisory Authority. 
137 Financial Supervisory Authority, "Registro de Reaseguradores y Corredores de Reaseguro del 
Exterior (REACOEX)".  Viewed at: http://www.superfi nanciera.gov.co/Normativa/NormasyReglamentaciones/ 
infogralregistro.htm [15 May 2006]. 
138 Paragraph 3.7, Chapter IV, Title VI, External Circular No. 007 of 1996. 
139 Article 91 of the Basic Statute of the Financial System. 
140 Ibid., Article 53. Colombia WT/TPR/S/172 
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banks.  Permits are granted for specified types of  insurance.  Companies authorized to provide 
personal life insurance or reinsurance may not offer other types of insurance.  The authorities have 
indicated that no information is available on the number of applications fo r authorization permits 
received or rejected. 
159. In 2006, the minimum capital required to set up an insurance company was Col$6,480 million 
(approximately US$2.8 million), except for companies which only provide export credit insurance, for 
which the minimum capital corresponds to Col$5,775 million.141  The minimum capital required to set 
up a reinsurance company was Col$25,916 million (around US$11.3 million).  To these amounts must 
be added the technical capital required to operate  in each type of insurance, which ranges from 
Col$708 million for transport insurance to Col$2,122 million for automobile insurance.142 
160. The requirements relating to solvency margin s and technical reserves laid down in the 
legislation apply equally to companie s with Colombian or foreign capital. 
161. It is also necessary to obtain an authorization permit from the Financia l Supervisory Authority 
in order to open an agency of an insurance or reinsurance compan y.  The requirements for such a 
permit are the same as those for banks.  Agencies mu st have a representative in Colombia.  There are 
no minimum capital requirements for agencies.  The au thorities have indicated that no information is 
available on the number of applications for authorization permits received or rejected. 
162. The policies and premiums of insurance companies are not subject to official control but they 
must comply with the principles laid down in the Basic Statute of the Financial System.143  Insurance 
companies must send models of their polici es to the Financial Supervisory Authority. 
(iii) Transport 
(a) Introduction 
163. Colombia did not undertake any maritime or  air transport service commitments under the 
GATS. 
164. The key laws in the transport sector are Law No. 105 of 1993 and Law No. 336 of 1996. 
165. The sector's institutional framework underwent far-reaching changes between 1999 and 2003.  
The Ministry of Transport is responsible for form ulating Government policy on transit, transport and 
infrastructure in this sector and, with the ex ception of air transport, regulates the sector.144  T h e  
Instituto Nacional de Vías – INVIAS (National Highway Institute) is responsible for implementing 
policies relating to the maritime infrastructure and th e infrastructure of the highway network within its 
competence that is not the subject of a concession,  as well as the rail and river transport networks.145  
The Instituto Nacional de Concesiones  – INCO (National Concessions Institute) is in charge of 
organizing and administering concessions for hi ghways, rivers, seaways, ports and railways.146  The 
Ports and Transports Supervisory Authority has the task of inspecting, supervising and monitoring the 
                                                      
141 Ibid., Article 80, and Law No. 795 of 2003. 
142 Decree No. 1222 of 2003. 
143 Article 184. 
144 Article 5 of Law No. 105 of 1993 and Article 6 of Decree No. 2053 of 2003. 
145 Article 1 of Decree No. 2056 of 2003.  The Regional Autonomous Corporation of the Río Grande de 
la Magdalena, Cormagdalena, controls the river infrastru cture on the Magdalena River, including its mouth in 
Barranquilla. 
146 Article 2, Decree No. 1800 of 2003. WT/TPR/S/172 Trade Policy Review 
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sector, with the exception of air transport.147  The Dirección General Marítima – DIMAR (General 
Maritime Directorate) , which comes under the Ministry of Nationa l Defence, takes part in formulating 
and implementing maritime transport policy in coordination with the Ministry of Transport.  It also 
has a role to play in the technical regulation, coordination and supervisi on of maritime activities.148  
The DIMAR exercises supervision through the port  authorities or directly through its Director 
General. 
166. The Unidad Administrativa Especial de Aeronáutica Civil  – AEROCIVIL (Special 
Administrative Division for Civil Aviation) regulates, administers, monitors and supervises use of air space.  It is also responsible for regulating an d supervising airport infrastructure and concessions.
149  
INVIAS, INCO, the Ports and Transport Supervis ory Authority and AEROCIVIL all belong to the 
Ministry of Transport but have administrative and financial autonomy. 
167. The transport departments of regional authorities (departments and municipalities) also have 
responsibilities concerning the organization, monitori ng and supervision of tr ansport activities within 
their respective jurisdiction.150 
168. Even though the reforms implemented since 1999 have streamlined the institutional structure 
in the transport sector, the World Bank indicates th at there are still problems caused by management 
capacity in the components and duplication of their tasks.151 
(b) Maritime transport 
Market features 
 169. Ninety five per cent of Colombia's foreign trad e (in volume terms) is transported by sea.  
Between 1996 and 2004, the volume of cargo transpor ted by sea increased by 34 per cent and reached 
86.8 million tonnes.
152  The majority of the cargo consists of coal and petroleum. 
170. There are 10 Colombian companies and 94 foreign companies operating ships providing 
international maritime transport.  A furthe r 103 Colombian shipping companies are engaged 
exclusively in cabotage transport, while 27 Colomb ian shipping companies provide both international 
services and cabotage. 
171. Maritime transport costs in Colombia are rela tively high.  In 2003, freight costs accounted for 
14 per cent of the value of imports into Colombia, compared with an average of around 10 per cent in 
other Latin American and Caribbean countries.  Ne vertheless, freight costs in Colombia are not 
significantly different from the average in countri es on the West Coast of South America (Chile, 
Colombia, Ecuador and Peru).153 
172. Colombia has 183 port facilities, of which 105 are private and 78 State-owned.  The major 
ports are Barranquilla, Cartagena and Santa Marta on the Atlantic coast, and Buenaventura and 
Tumaco on the Pacific Coast.  These ports handle the most of the general cargo. 
                                                      
147 Article 3, Decree No. 1016 of 2000. 
148 Article 4, Decree No. 2324 of 1984. 
149 Article 3, Decree No. 260 of 2004. 
150 Article 8, Law No. 336 of 1996. 
151 World Bank (2004b). 
152 Ministry of Transport (2005), Table 12. 
153 UNCTAD (2005b). Colombia WT/TPR/S/172 
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173. The State-owned company COLPUERTOS had a mo nopoly of port handling of general cargo 
until 1991, when it started to be liquidated.  CO LPUERTOS facilities in e ach port area were the 
subject of a concession given to five regional port companies in 1993.  The capital of these five companies is essentially private. 
174. Reform of the port system led to substantial improvements in the productivity of ports and a 
sharp reduction in the rates charged to users.
154  This came about as a result of increased competition 
among private handlers in each port and also new investment in container-handling equipment.155  
Nevertheless, the highway infrastructure leading to the ports still causes problems. 
Legal framework 
175. Access to the international maritime transpor t market is subject to the principle of 
reciprocity.156  In order to implement this principle, the Ministry of Transport is empowered to impose 
new measures restricting access by companies from certain countries to Colombia's international 
maritime transport market, in coordination with the DIMAR and the MCIT.  When assessing the need 
to impose measures, the Ministry of Transport must  take into account "Colombia's international trade 
interests".157  The authorities have indicated that Colombia has not restricted access to its international 
maritime transport market. 
176. Decision 390 of the Commission of the Cartagen a Agreement, which amended certain articles 
of Decision No. 314, establishes mechanisms to allow Colombia and other Andean Community 
members to act jointly against third countries which discriminate against maritime transport 
companies belonging to one or more member countries.  No country has requested imposition of 
restrictive measures under Decision No. 314. 
177. Access to the cabotage maritime transport market  is restricted to companies composed of 
natural persons whose main domicile is in Colombia  or legal persons establis hed in Colombia.  In 
both cases, a company must have at least one Colomb ian-registered vessel.  In principle, cabotage 
services should be supplied by Colombian-registered ships.  Companies may lease or charter foreign-
registered vessels for certain voyages provided that they obtain authorization from the DIMAR.158 
178. The vessel must be listed in the register kept by  the port authorities in order to have the right 
to fly the Colombian flag.  The Commercial Code restricts ownership of a Colombian-registered 
commercial vessel to Colombian nationals.159  Nevertheless, the authorities have indicated that this 
restriction cannot be applied because, as the Counc il of State determined, it is contrary to the 
principles enshrined in Articles 13 and 100 of the Constitution.160  The captain, officers and 80 per 
cent of the rest of the crew of Colombian-regi stered vessels must be of Colombian nationality.161 
                                                      
154 Gaviria (1998). 
155 Idem  and World Bank (2004b). 
156 Article 46, Decree No. 804 of 2001. 
157 Ibid., Article 49. 
158 Ibid., Article 26. 
159 Article 1458. 
160 Council of State, Chamber of Administrative Disputes, File No. 5169 of 2000, 1 June 2000.  
Article 13 of the Constitution provides the following:  "A ll people are born free and equal before the law, they 
shall be given the same protection and treatment by the authorities and shall enjoy the same rights, freedoms and opportunities without dis tinction of any kind such as gender, race, na tional or family origin , language, religion, 
political or philosophical opinion ... ".  Article 100 of th e Constitution states that:  "Foreign citizens shall enjoy 
the same civil rights in Colombia as those granted to Colombian citizens.  Nevertheless, for reasons of public order, the law may make the exercise of certain civil ri ghts by foreign citizens subject  to special conditions or WT/TPR/S/172 Trade Policy Review 
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179. Decree No. 804 of 2001 defines a Colombian maritime transport company as "a natural 
person whose principal domicile is in Colombia or  a legal person established according to Colombian 
regulations, duly authorized and holding an oper ating permit".  The Commercial Code provides that 
foreign capital holdings in "Colombian mar itime companies" may not exceed 40 per cent.162  T h e  
Council of State determined that this provision was not  in effect "since it had been tacitly repealed by 
Law No. 9 of 1991 on grounds of inconsistency with  the provisions of Article 15 thereof, which 
moreover is a subsequent and special law … "163 
180. An authorization and an operating permit issu ed by the DIMAR are required in order to 
provide scheduled maritime transport services.  Th is requirement applies both to Colombian and 
foreign companies.  The authorization and operating permit are given for an indefinite period and for 
specified types of service, namely, general transpor t services, container transport, bulk transport, 
passenger transport, or combined transport;  th ey may not be assigned.  The authorization and 
operating permit are granted automatically and the relevant requirements are set out in Decree 
No. 804 of 2001.164  The law gives the DIMAR a time-limit of 90 days as of the date of the 
application in which to grant the authorization and operating permit.165  The authorities have indicated 
that, since 1997, they have received 348 applications;  283 companies are in possession of an 
authorization and operating permit;  33 companies ha ve cancelled their authorizations and operating 
permits;  and 32 companies sent in incomplete applications.166  Suppliers of unscheduled maritime 
transport services must apply to the DIMAR for authorization for each voyage from a Colombian 
port. 
181. Foreign companies providing maritime trans port services in Colombia must have a 
representative in Colombia.  Any foreign-registered  vessel arriving in a Colombian port must have a 
shipping agent.167 
182. Liner conferences which include Colombian ports must permit the free entry of Colombian 
companies and allow them to ad just their rates independently.168  The conferences must also appoint a 
representative in Colombia, who must be accredited with the DIMAR.  Conferences and rates must be 
registered with the DIMAR.  The latter may reje ct a registration application if:  the Colombian 
company taking part in the agreement does not recei ve reciprocal treatment from the countries of the 
other parties;  the agreement does not allow one  of the parties to supply services to or from 
Colombian ports;  the Supervisory Authority for Industry and Trade determines that the agreement 
                                                                                                                                                                     
deny their exercise.  Likewise, foreign citizens, within the territory of the Republic, shall enjoy the guarantees 
given to Colombian citizens, subject to the limitations established in the Constitution or the legislation". 
161 Article 99, Decree No. 2324 of 1984. 
162 Article 1426. 
163 Council of State, Consultative and Civil Servi ce Chamber, Case No. 1255 of 6 April 2000.  
Article 15 of Law No. 9 of 1991 states the following:  "The general regime governing investment of foreign 
capital in Colombia and Colombian investment abroad shall be determined by the National Government.  In order to implement this provision, the terms, destination, form of approval and general conditions governing 
such investment shall be specified ... Regimes of excep tion according to the destination of the investment may 
be established by means of general regulations, for example, regimes applicable to the financial, hydrocarbons 
and mining sectors.  With the exception of matters re lating to the transfer of resources abroad, foreign 
investment in Colombia shall for all purposes be treated in the same way as investment by Colombian citizens ... The rules adopted to implement this Article may not gran t conditions or apply grant discriminatory treatment to 
foreign investors in comparison with Colombian private investors". 
164 Article 11. 
165 Article 8, Decree No. 804 of 2001. 
166 Information at August 2006. 
167 Article 1455 of the Commercial Code. 
168 Articles 36 et seq , Decree No. 804 of 2001. Colombia WT/TPR/S/172 
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may be contrary to the provisions on competition.  The DIMAR has not rejected any application to 
register a liner conference;  at mid-2006, it had registered nine conferences. 
183. Shipping companies providing services in Colomb ia must register their rates with the 
DIMAR169, which may object to the rates. 
184. Law No. 1 of 1991 allows the creation of re gional port companies to build, maintain and 
operate ports, port terminals or wharfs and to provide port services and auxiliary shipping services.170  
Regional port companies must have a concession in order to operate.  Concessions are granted for 
20 years, renewable for periods of up to 20 years.  The legislation does not place any restrictions on foreign capital holdings in regional port companies.  The law does prohibit the granting of subsidies to 
such companies.
171  The terms for granting concessions to  regional port companies in Tumaco, 
Buenaventura, Cartagena, Barranquilla  and Santa Marta provide that the State may not hold more than 
30 per cent of the capital of such companies.172 
185. Regional port companies may allow other compan ies to provide port and auxiliary maritime 
services within their facilities.  Regional port comp anies and suppliers of port services and auxiliary 
maritime services must provide their services in a non-discriminatory manner and must refrain from 
any practices that have the "capacity, purpose or effect" of restricting competition.173 
186. Foreign-registered vessels may not provide port services in Colombian waters.174  T h e  
DIMAR may, however, authorize the supply of such services by a foreign-registered vessel if no Colombian-registered vessels are ab le to provide them.  The authorization is given for six months and 
may be extended for up to a maximum of one year. 
(c) Air transport 
Market features 
187. In 2005, the number of international passengers  was 3.4 million, some 39 per cent more than 
in 1996.  International freight traffic incr eased by 39 per cent over the same period, reaching 
530,786 tonnes in 2005.  International freight traffi c is mostly one way.  Traffic to Colombia 
accounted for around one half of the freight leaving Colombia in 2005. 
188. Domestic passenger and freight traffic has not been as dynamic as international traffic.  The 
number of domestic passengers was eight million in 2005, compared to almost nine million in 1996.  
The amount of domestic freight in 2005 was 137,637 tonnes, slightly lower than in 1996. 
189. Private companies provide air services.  One exception is SATENA, the State airline coming 
under the Ministry of National Defence.  The le vel of concentration has increased significantly as 
many airlines have left the market, including  ACES in 2003, Intercontinental de Aviación and 
Aerotaca in 2004 and West Caribbean in 2005.
175  Avianca and Aerorepública together have almost 
70 per cent of the domestic market.  The majority of  the shares in both companies are foreign owned. 
                                                      
169 Article 42, Decree No. 804 of 2001. 
170 Article 1, Law No. 1 of 1991 
171 Idem . 
172 Article 9, General Port Supervisory Authority Resolution No. 0113 of 1992. 
173 Article 1, Law No. 1 of 1991. 
174 Article 38, Decree No. 1423 of 1989. 
175 AEROCIVIL (undated). WT/TPR/S/172 Trade Policy Review 
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190. Colombia has 598 airports and airfields, of wh ich 75 are the responsibility of AEROCIVIL;  
143 are the responsibility of regional authorities and the remainder are private.  There are eight international airports.  The airports in Bogotá,  Medellín-Rionegro, Cali and Barranquilla handle the 
largest volume of international passenger traffic. 
191. In 1993, Colombia began to implement a policy of decentralizing the airport infrastructure in 
response to "strong pressure" on the infrastructure and the need to increase investment in its 
maintenance and expansion.
176  As part of this policy, concessions were granted for the management 
of the airports in Cali, Cartagena and Barranquilla  and two runways at the El Dorado airport in 
Bogotá.  It is envisaged that concessions will be  granted for the airports in Bogotá, San Andrés, 
Providencia and Medellín-Ríonegro.  The World Bank has pointed out that the airport infrastructure 
suffers from below-standard terminals, lack  of services and inadequate means of access.177  To these 
must be added pressure from the regions to carry ou t new works to the detriment of maintenance of 
those already existing. 
Legal framework 
192. Foreign airlines may provide international air transport services to and from Colombia 
pursuant to the international agreements signed by Colombia.178  In the absence of any international 
agreement, AEROCIVIL may authorize a foreign co mpany to provide international services if the 
country of origin of the said airline offers "adequa te reciprocity" to Colombian airlines, taking into 
account factors such as "domestic needs", public security and "the economic interests of air transport".
179  Foreign companies holding an operating perm it must have a representative domiciled in 
Colombia. 
193. Colombia has signed international air transport agreements with Argentina, Aruba, Belgium, 
Bolivia, Brazil, Chile, Costa Rica, Cuba, the Domi nican Republic, Ecuador, France, the French West 
Indies, Germany, Italy, Korea, Luxembourg, Mexico, the Netherlands Antilles, Panama, Peru, 
Portugal, Spain, Suriname, Switzerland, the Un ited Arab Emirates, the United Kingdom, the United 
States of America, Uruguay, and Venezuela.180  The agreement with Venezuela is the only one which 
establishes mutual fifth freedom traffic rights without geographical restrictions. 
194. Under Decision No. 582 of the Andean Community, member countries undertook to grant 
mutual fifth freedom traffic rights within the A ndean Community for scheduled passenger flights.  
This right also applies to unscheduled passenger fl ights provided that there are no scheduled flights 
between the points for which the right is granted.   Decision No. 582 also provides that member 
countries shall grant fifth freedom traffic right s for unscheduled cargo flights between member 
countries and third countries.181 
195. Cabotage air transport is restricted to Colombian aircraft.182  In order to be considered of 
Colombian nationality, an aircraft must be listed in the National Aviation Register.  The Commercial 
Code provides that foreign capital holdings in "Colombian airlines" may not exceed 40 per cent.  The 
Council of State determined that this provision was not  in effect since it had been tacitly repealed by 
Law No. 9 of 1991 (see (iii)(b) above).  The authorities have indicated that, pursuant to Law No. 9 of 
                                                      
176 National Planning Department (1994). 
177 Gaviria (1998). 
178 Article 1870 of the Commercial Code. 
179 Idem , paragraph 3.6.3.3.2.2, Colo mbia's Aviation Regulations. 
180 The agreements with Belgium and Lu xemburg only cover cargo services. 
181 Article 10, Decision No. 582. 
182 Article 1785 of the Commercial Code. Colombia WT/TPR/S/172 
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1991, the provision of Colombia's Aviation Regulations which specifies that only aircraft which are 
"actually owned" and "effectively controlled" by Colombian citizens or companies domiciled in Colombia in which not more than 40 per cent of the capital is foreign-owned may be listed in the 
National Aviation Register is not applied.
183 
196. Even though the policy governing access to the domestic market has gradually been 
liberalized in recent years,  there is still a limit on the maximum number of operators on passengers 
routes.  Since March 2005, these have been the follo wing:  up to six operators on routes carrying over 
400,000 passengers annually;  up to  five operators on routes ca rrying less than 400,000 but over 
100,000 passengers annually;  and up to th ree operators on routes carrying less than 
100,000 passengers annually. 
197. Ninety per cent of the employees of a Colombian airline must be of Colombian nationality.  
The captain of a Colombian aircraft must be a Co lombian citizen.  The agencies or subsidiaries of a 
foreign company in Colombia must meet this requi rement unless the country of origin of the foreign 
company does not impose similar restrictions on Co lombian companies or if AEROCIVIL finds "duly 
justified reasons".184 
198. AEROCIVIL authorizes unscheduled domestic or international flights provided that they do 
not constitute "unfair competition" with scheduled services.185 
199. Any Colombian or foreign company providing  scheduled or unscheduled air services in 
Colombia must obtain an operating permit from AE ROCIVIL.  Operating permits are granted for 
specified routes.186  The requirements for obtaining a perm it are set out in the Aviation Regulations 
and include minimum capital requirements.187  Prior to issuing an operating permit, AEROCIVIL 
must hold a public hearing to guarantee "appropriate an alysis of the need for and expediency of the 
proposed service".188  The authorities have indicated that two or three months are needed to complete 
the public hearing procedure.  Since 2004, 37 freight routes requested by foreign companies have been approved and one route has been rejected.  Regarding applications by foreign companies to 
provide passenger, postal and freight services, 35 routes have been approved and none has been 
rejected. 
200. Airlines must register their tariffs and terms with AEROCIVIL, which has to approve them on 
the basis of criteria determined in the corresponding resolutions.
189  Ceilings are placed on rates for 
international freight services.190 
201. The Commercial Code allows the Government to  grant subsidies to the aviation industry.191  
The authorities have explained that, as far as this  provision is concerned, the Council of State 
determined that the Government could only  subsidize public air transport companies. 
                                                      
183 Paragraph 3.4.3. 
184 Ibid., Article 1803. 
185 Paragraph 3.6.3.5.5, Colombia's Aviation Regulations. 
186 Article 1859 of the Commercial Code. 
187 The requirements for obtaining an operating permit are set out in paragraph 3.6.3.2.2 et seq. 
188 Paragraph 3.6.3.2.6 of Colombia's Aviation Regulations. 
189 Resolutions Nos. 15542 of 1991 (domestic air transport) and 0477 of 1992 (international air 
transports). 
190 Resolutions Nos. 2795 of 1990 (the Americas) and 17766 of 1990 (Europe). 
191 Article 1853 of the Commercial Code. WT/TPR/S/172 Trade Policy Review 
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202. AEROCIVIL is empowered to grant concessions for the management of State-owned airports 
to "specialized entities" or "regional associations".192  Government participation in companies that 
have been granted concessions may not exceed 50 per cent.  The law does not set limits on foreign participation in companies given a concession to manage an airport. 
203. Companies wishing to provide air transport-related support services must apply to 
AEROCIVIL for an operating permit.
193  Operating permits are issued for three years and may be 
renewed.  The requirements for obtaining perm its are set out in the Aviation Regulations.194  Aircraft 
maintenance workshops must satisfy minimum capita l requirements.  The law does not limit foreign 
capital holdings in companies offering support ser vices in Colombia.  Dispatchers working for 
companies providing aircraft dispatch services must be Colombian citizens.195 
(iv) Professional services 
(a) Introduction 
204. In its schedule of commitments at the WTO, Co lombia undertook not to impose limitations on 
cross-border supply and consumption abroad for legal advisory services relating to foreign or 
international legislation.  It also undertook not to  impose restrictions on investment and consumption 
abroad for tax advice services and management consu ltants, and not to limit consumption abroad for 
accounting services. 
205. In Colombia, some 60 professions are regulated.196  In general, the rules governing each 
profession provide for the creation of professional asso ciations, councils or tr ibunals responsible for 
inspecting, supervising and monitoring the profession.   Public bodies related to the profession, higher 
education institutions and relevant  trade unions participate in these professional associations, councils 
and tribunals, which have disciplinary powers. 
206. Professionals with foreign qualifications usually ha ve to have these validated in order to take 
up in their profession in Colombia.  They also require a work permit. 
207. The Ministry of National Education is res ponsible for validating academic qualifications 
issued abroad.197  Any application for validation must be  accompanied by the documents listed in 
Resolution No. 5547 of 2005.198  Documents in languages other than  Spanish must be translated by a 
translator recognized by the Ministry of Foreign Affairs.  The diploma a nd certificate showing the 
qualifications or the academic programme must be legalized. 
208. The law determines a maximum period of two m onths for the Ministry of Education to 
validate qualifications issued by countries with which Colombia has a relevant reciprocity 
agreement.199  The Colombian authorities have indicated that, in practice, there is no validation 
through this channel inasmuch as the recognition agreements signed by Colombia are of a general 
nature.  Nevertheless, agreements with Argentina,  Ecuador and Mexico are intended to streamline the 
process of validating qualifications through mutual recognition of bodies or systems. 
                                                      
192 Article 48, Law No. 105 of 1993. 
193 Paragraph 3.7.3 of Colombia's Aviation Regulations. 
194 Ibid., paragraph 3.7. 
195 Ibid., paragraph 3.7.3.5. 
196 Rojas Cristancho (undated). 
197 Article 219, Decree No. 2230 of 2003. 
198 Ibid., Article 2. 
199 Article 3, Resolution No. 5547 of 2005. Colombia WT/TPR/S/172 
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209. The law also determines a period of two mont hs for validating qualifications issued by 
accredited academic institutions or programmes by entities that are "of high quality, recognized in 
their countries of origin or at the international level".200  The Ministry of National Education has not 
published criteria for determining the status of accred itation.  The authorities have stated that, in order 
to determine the status of an accreditation body, th ey turn to information on accreditation procedures 
published by international bodies, for example, UNESC O, or by other countries.  Some qualifications 
will be subject to an "academic evaluation" pr ocedure conducted by the Ministry of National 
Education.201  The Ministry has five months in which to issue a substantiated decision regarding any 
application to validate such qualifications. 
210. The Ministry of Foreign Affairs is responsible for issuing temporary work permits.  In order 
to apply for a "temporary work" permit, a person must  have been recruited by a company domiciled in 
Colombia or belong to a company commissioned to provide services to a company domiciled in 
Colombia.  Professionals working for a foreign pa rent company may apply for a temporary visa to 
work at the subsidiary in Colombia.202  A temporary work permit is issued for up to two years and for 
multiple entries. 
211. Not more than 10 per cent of "ordinary employees" and up to 20 per cent of skilled 
employees, specialists, administrative staff or person s in posts of responsibility in companies with 
over 10 employees may be foreign citizens.203  The Ministry of Social Welfare may allow these limits 
to be exceeded "for the period needed to train Colombian personnel".204 
212. Foreign companies engaged in ge ological consultancy work in Colombia must be associated 
with a company established in Colombia.205 
(b) Accountancy services 
213. The Junta Central de Contadores (Central Accountants' Board) is responsible for inspecting, 
supervising and monitoring the activities of the profession.206  The Board is composed of the Minister 
of National Education, the Heads of the Financial Supervisory Authority, the Companies Supervisory 
Authority and the National Health Supervisory Aut hority, the Auditor General of the Nation, the 
Director of National Taxation and representatives of  the Colombian Universities' Association, the 
Colombian Association of Chartered Account ants' Faculties, and chartered accountants.207 
214. Foreigners may not serve as chartered accountants  in Colombia unless they have resided in 
Colombia during the three years prior to submitting an  application for registration in the Professional 
Register of Chartered Accountants kept by the Ce ntral Accountants' Board.  The documents to be 
attached to the registration applicati on are listed in Resolution No. 160 of 2004.208  C o l o m b i a n  
chartered accountants must also be regist ered with the Central Accountant's board. 
215. Individuals with academic qualifications i ssued abroad may not serve as chartered 
accountants in Colombia unless their qualifications ha ve been issued in a country that has signed a 
                                                      
200 Idem . 
201 Ibid., Article 4. 
202 Chapter I, Title VIII, Decree No. 4000 of 2004. 
203 Article 74 of the Labour Code. 
204 Ibid., Article 75. 
205 Article 10 of Law No. 9 of 1974 and Articles 239 et seq.  of Decree No. 2655 of 1978. 
206 Chapter III, Title II, Law No. 43 of 1990. 
207 Ibid., Article 16. 
208 Ibid., Article 2. WT/TPR/S/172 Trade Policy Review 
Page 126 
 
 
reciprocity agreement with Colombia.209  The authorities have stated that Colombia has not signed any 
such agreements.  Qualifications issued abroad must be validated. 
216. At least 80 per cent of the partners in a ch artered accountants' firm must be chartered 
accountants.210 
(c) Architectural and engineering services 
217. The National Professional Council of Architectur e and Ancillary Professions is responsible 
for inspecting, supervising and monitoring the activ ities of the architectural profession.  The Council 
is composed of the following:  the Minister of the Environment, Housing and Land Development;  the Minister of National Education;  the President of the Colombian Architects' Association;  the Rector 
of the National University;  and representatives of universities with faculties of architecture and 
faculties for ancillary architectural professions.
211 
218. The body responsible for inspecting, supervis ing and monitoring the activities of certain 
branches of the engineering profession is the Consejo Profesional Nacional de Ingeniería – COPNIA 
(National Engineering Professional Council).  It is com posed of the Minister of Transport, the Rector 
of the National University, a representative of pr ivate universities and the President of the Colombian 
Engineers' Association. 
219. Architects and engineers domiciled abroad may be given a temporary permit to work in 
Colombia without having to validate their qualificati ons or be registered in the relevant Colombian 
professional register.212  Architects must apply for this permit to the National Professional Council of 
Architecture and Ancillary Professions and engineers must apply to the COPNIA.  Permits are valid 
for one year and may be renewed.  They are gr anted automatically to applicants who meet the 
requirements laid down in Agreement No. 02 of 2006 of the National Professional Council of 
Architecture and Ancillary Professions or in Article 23 of Law No. 842 of 2003  (engineers).  Between 
January 2005 and April 2006, the COPNIA issued 325 temporary permits for engineers and ancillary 
professionals.  The WTO Secretariat has no information regarding the number of temporary permits given to architects.  The granting of a temporar y permit does not exempt architects or engineers 
domiciled abroad from the need to obtain a work permit.   
220. The number of foreign engineers and ancillary  professionals may not exceed 20 per cent of 
the Colombian engineers and ancillary professionals  employed by a company unless the Ministry of 
Social Welfare exempts a particular company.
213  The company has one year in which to comply with 
the requirement in the legislation.  The law also  obliges specified companies to recruit a minimum 
number of engineers of Colombian nationality.  Fo r example, 90 per cent of the chemical engineers 
employed by a chemical engineering company must be Colombian citizens.214  The involvement of 
foreign architects is subject to overall quotas laid down in the Labour Code (see (7) above). 
                                                      
209 First paragraph of Article 3 of Law No. 43 of 1990. 
210 Article 4, Law No. 43 of 1990. 
211 Title IV, Law No. 435 of 1998. 
212 Ibid., Article 7 and Article 23 of Law No. 842 of 2003. 
213 Article 22, Law No. 842 of 2003. 
214 Article 7, Law No. 18 of 1976. Colombia WT/TPR/S/172 
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(d) Legal services 
221. The Higher Council of the Judiciary, part of the judicial branch, is responsible for verifying 
the conduct and disciplining misconduct by lawyers.215  The Ministry of the Interior and Justice is 
involved in drawing up policies on exercise of the profession of lawyer.216 
222. Lawyers, including those domiciled abroad, must a pply for registration in the national register 
of lawyers and the issue of a professional permit.   Lawyers domiciled in Colombia must undertake 
this procedure with the Sectoral Council of the Judiciary in the Department where they reside. 
223. Academic qualifications issued abroad must be validated.  When requesting validation, 
applicants must prove that they have completed studies of certain areas of Colombia's legislation, 
including constitutional and administrative law.217  This may be accomplished through a certificate 
obtained from a Colombian higher education institute that has a duly registered law programme or by 
passing a higher education examination. 
 
                                                      
215 Article 256 of Colombia's Political Constitution. 
216 Article 21, Decree No. 200 of 2003. 
217 Article 4, Resolution No. 5547 of 2005. Colombia WT/TPR/S/172 
 Page 129 
 
 
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