WORLD TRADE  
ORGANIZATION  WT/TPR/M/172 
28 March 2007 
 (07-1277) 
Trade Policy Review Body 
22 and 24 November 2006  
 
 
TRADE POLICY REVIEW 
 
COLOMBIA 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mr. Eirik Glenne (Norway) 
 
 
    Page 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF COLOMBIA 4 III. STATEMENT BY THE DISCUSSANT 6 
IV. STATEMENTS BY MEMBERS 9 
V. REPLIES BY THE REPRESENTATI VE OF COLOMBIA AND ADDITIONAL 
COMMENTS  20 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 24 
 
Note: Advance written questions by WTO Member s and the replies provided by Colombia are 
reproduced in document WT/TPR/M/172/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.  
   WT/TPR/M/172 
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  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. This third Trade Policy Review of Colombia  was held on 22 and 24 November 2006.  The 
Chairperson H.E. Mr. Eirik Glenne (Norway) welc omed members of the Trade Policy Review Body 
as well as the delegation of Colombia led by Mr. Ed uardo Muñoz, Vice Minister of Trade, Ministry of 
Trade, Industry, and Tourism, and the discussant, H. E. Ambassador Peter Allgeier (United States).  
As usual, the discussant would speak in his pe rsonal capacity.  In accordance with established 
procedures, the discussant had made available, in a dvance, outlines of the themes he intended to raise 
(document WT/TPR/D/148). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The Report by Co lombia was contained in document WT/TPR/G/172, 
and that of the Secretariat in document WT/TPR/S /172.  As indicated in document WT/TPR/6/Rev.1, 
the Member under review should submit written answ ers before the beginning of the Review to 
questions submitted at least two weeks before the m eeting.  Questions posed subsequently should be 
answered, to the extent possible, be fore the start of the second session of the meeting.  Questions left 
unanswered at the end of the second session should be  answered in writing no later than one month 
after the meeting.  Questions by the following dele gations had been submitted in writing at least two 
weeks in advance of the meeting and had been tran smitted to the delegation of Colombia:  Singapore;  
Ecuador;  Guatemala;  Chinese Taipei;  Canada;  Japan;  European Communities;  United States;  
Hong Kong, China;  Honduras;  a nd Thailand.  Copies of these questions and of the answers provided 
by the delegation of Colombia were  available in the meeting room. 
3. Turkey;  Bolivia;  Dominican Republic;  Peru;  Switzerland;  Brazil;  Chile;  Costa Rica;  and 
Mexico had submitted written questions after the two week deadline.  Copies of all advance questions, 
as well as the responses provided by Colombia, ar e reproduced in document WT/TPR/M/172/Add.1. 
4. The Chairperson was pleased to note the progress in the modernization and liberalization of 
Colombia's trade regime.  Non-tariff barriers to trade had been significantly reduced, and Colombia 
had embarked on ambitious reforms,  particularly in services.  This had resulted in increased 
competition, lower prices, and expanded choice for c onsumers.  Colombia appeared ready to further 
open its trade regime and allow international trad e to exert fully its efficiency-enhancing role.  
Members would be interested in hearing how Colombia intended to do this and what were the priorities. WT/TPR/M/172 
Page 4  
 
 II. OPENING STATEMENT BY THE RE PRESENTATIVE OF COLOMBIA 
5. The representative of Colombia
 stated that this Trade Policy Review had helped his country 
to identify sensible policies and remaining cha llenges along the path of economic growth and 
development.  Following its previous Review, Colo mbia had experienced a recession, with real GDP 
falling by 4.2% in 1999.  The recession had been pr eceded by a financial crisis, which had led to a 
contraction of credit, consumption, and private investment.  The internal conflict had worsened, 
affecting macroeconomic stability.  Employment and investment had decreased as a result.  Fortunately, this situation had been overcome.  Recent governments had worked to get the economy 
back into shape.  The current Government had adopted a development Plan (Towards a Communitarian State), which had been approved by  Congress in June 2003;  its objectives were to 
offer democratic security;  to foster sustainabl e economic growth and employment creation;  to 
promote social equity;  and to renew the public administration.  The order in which these objectives were listed was not random.  The Plan sought to restore confidence and improve investment 
conditions.  More investment promoted economic growth and employment, which was the Plan's 
second objective.  The Plan was completed with an active social policy, which was aimed at a fair 
distribution of the fruits of growth.  Colombia's  social policy included measures to broaden the 
coverage of basic education, health, and nutrition;  it also covered environmental protection, tourism 
promotion, and the recovery of rural areas, which had been severely affected by internal violence and 
unstable international commodity prices.  The Plan also sought to rationalize State agencies and to 
offer transparency and predictab ility to citizens and investors. 
6. Security had increased.  There was optimism and confidence, reflected in growing demand, 
output, tourism, and foreign investment flows.  The Government was working on improving legal 
security.  In this regard, Colombia had moderni zed its labour laws and promulgated wide-ranging 
laws to increase legal stability for investors and to  reform capital markets.  The anti-red-tape initiative 
sought to simplify the lives of market participants and citizens.  For a number of years, the Government had been adopting fiscal, monetary, cr edit, and sectoral policies that favoured output 
growth.  Private investment increased from 8.6% of  GDP in 2002 to 15.2% in 2005.  This had had a 
positive impact on internal demand, and had led to  average annual GDP growth of 4.6% between 
2003 and 2005.  Real GDP growth in 2005 (5.2%) ex ceeded Colombia's historical average and the 
average for Latin America.  Colombia's objectiv e was to achieve annual average GDP growth of 
between 4% and 4.5% during 2007-17.  There had been new investment and regulatory changes in infrastructure, particularly in transportation.  Ex ports had reached a high of  US$21.2 billion in 2005, 
compared with US$11.6 billion in 1997, an increase of  83.5%.  The share of non-traditional exports in 
total exports had increased, with the share of manufac turing up by seven percentage points.  Credit by 
the Foreign Commerce Bank had contribu ted significantly to export performance. 
7. The Andean Community was an essential co mponent of Colombia's trade policy, and 
Colombia would continue to work to deepen this  scheme.  Colombia would maintain its free-trade 
area with Venezuela in accordance with the Cartagena Agreement.  During the past four years, 
Colombia had negotiated free-trade agreements w ith MERCOSUR, the United States, and Chile.  It 
hoped to conclude negotiations w ith El Salvador, Honduras, and Guatemala soon.  Colombia had 
worked actively to start negotiations with th e European Union, Canada, and EFTA in 2007.  
Colombia aspired to join APEC, and had promoted  a meeting of trade ministers to discuss Latin 
America-Pacific issues.  In short, Colombia had an active trade policy based on the concept of open 
regionalism, whose benefits would be reflected in  future economic growth.  In 2006, Colombia was 
ranked 40
th by the World Competitiveness Forum, compared with 47th in 2005, as a result of 
improvements in economic performance, and governme nt and business efficiency.  Regarding social 
policy, the Government had launched a comprehe nsive plan.  Additionally, it had implemented 
programmes to support employment and small enterpri ses.  All this had resulted in a 14% increase in 
per capita income, and a 7.8% reduction in poverty.   However, poverty levels were still high, and 
Colombia would continue efforts to improve living standards.  WT/TPR/M/172 
 Page 5 
 
 
  8. During the review period, Colombia had hon oured its WTO commitments;  trade policy 
measures were in conformity with GATT 1994.  Bound tariffs had not been modified;  applied tariffs 
on some agricultural products had increased slightly;  this had led to a half percentage point increase 
in the average applied rate (11.5% to 12%).  Re garding internal taxes, Colombia was correcting 
instances where domestic and foreign goods were tr eated differently.  A tax reform package was 
expected to be adopted by end 2006.  Colombia had simplified and rationalized import and export 
procedures through the creation of a single window for foreign trade in 2005, and a single form for foreign trade.  The goal of the single window was to allow traders to process authorizations, permits, certificates, and other customs documentation elect ronically.  Colombia had made progress towards 
the harmonization and implementation of procedures  to apply sanitary and phytosanitary measures, 
and technical regulations.  Colombia had used  anti-dumping and safeguard measures moderately, 
abiding by its domestic law, which was in full conf ormity with WTO rules.  Regarding transparency, 
Colombia had maintained an active notification programme, which would continue.  Colombia had 
been granted a waiver to provide benefits unde r the capital good import-export systems and the free-
trade zone regime.  Colombia ha d fully adhered to its commitments  in this area, and had adopted 
legislative changes to ensure the programmes' timely expiration. 
9. Colombia had eliminated its absorption regi me, which involved non-automatic licensing for 
sensitive agricultural products.  It had implemente d a transparent market me chanism to administer 
tariff quotas for corn, rice, soybeans, sorghum, a nd cotton.  This mechanism allowed bidders 
acquiring domestic production at the National Agricu ltural Exchange to import at the in-quota rate, 
and was subject to the same legislation as the stock exchange.  Each year, the Government established 
the list of products subject to this mechanism.  In 2006, tariff quotas had been established only for 
corn and soybeans.  Colombia had liberalized trade in various services sectors, particularly transport, 
telecommunications, and financial services.  Colombia  hoped to consolidate this, given the important 
contributions of services to dom estic output (63% in 2005). 
10. The true contributions of the Doha Round to developing countries would be market opening.  
This had to be accompanied by the elimination of  hidden barriers that prevented them from taking 
advantage of improved access conditions resulting from lower tariffs.  Colombia supported efforts to restart the negotiations as soon as possible.  In ag riculture, Colombia sought to reduce internal 
support, and trade- and production- distorting subsidies, with the understanding that increased market 
access would follow domestic support reform.  Colomb ia expected commitments on industrial goods 
commensurate with the level of ambition in agricu lture.  It sought further opening in services sectors 
where it had entered foreign markets, particular ly through the enhanced movement of service 
providers.  Colombia's revised services offer cons olidated commitments in numerous sectors that 
were unbound or partially b ound in its initial offer.  Specifically, the revised offer proposed to 
eliminate economic needs tests and requirements on establishment in telecommunications;  it contained new commitments or consolidated market access for professional services, research and 
development, leasing services without operators, cons truction and engineering,  education, tourism, 
and air transport.  Colombia attached importance to the negotiations on trade facilitation.  It hoped 
that the aid for trade initiative would bear fruit.  The working group's recommendations posed several 
challenges:  Latin America should pilot these recommendations. 
11. Colombia was a country of contrasts;  it faced difficulties, but had very high aspirations.  It 
was privileged to have world renowne d intellectuals and artists.  It produced the best coffee, and its 
people were among the most optimistic.  Colomb ia would approach its Trade Policy Review 
constructively and positively, hoping to extract many  lessons and experiences to help its internal 
considerations and the formulation of a trade policy consistent with its international commitments and 
aspirations. WT/TPR/M/172 
Page 6  
 
 III. STATEMENT BY THE DISCUSSANT 
12. The discussant
 (H.E. Mr. Peter Allgeier), noted that Colombia's Trade Policy Review 
provided an opportunity to go beyond an analysis of  Colombia’s situation, and to reflect on lessons 
and challenges for all Members, as illu strated by Colombia's experience. 
Economic environment and performance 
13. Many of Colombia’s economic indicators had improved steadily since the end of a major 
recession in the late 1990s.  Economic growth ha d recovered since 2003, with unemployment falling 
from 17% in 2000 to 10.4% in 2005.  There was still r oom for improvement here.  Inflation was at an 
historic low, with the consumer price index falling from 17.7% in 1997 to 4.9% in 2005, and an even 
sharper reduction in the producer price index.  Th e Government had achieved fiscal balance in its 
2005 budget.  Capital formation had contributed si gnificantly to recent growth, accounting for 21.6% 
of GDP in 2005.  This boded well for future productivity gains.  In spite of the positive 
macroeconomic indicators, real per capita GDP, at approximately US$2,300, had been stagnant 
during the last eight years, leaving nearly half the population below the poverty line.  He asked the Colombian delegation to share its experience and pl ans for spreading the benefits of growth, an 
important issue for all developing countries. 
14. International trade in goods and services was equivalent to 40% of GDP and played a 
significant role in the economy.  Colombia had re gistered a merchandise trade surplus since 1999, and 
continued to have a services deficit.  The overall current account deficit of just under US$2 billion in 
2005 amounted to approximately 1.5% of GDP.  Although the deficit was expected to rise to nearly 2% of GDP in 2007 and 2008, it sh ould be easily financed, given fiscal restraint by the Government, 
the outlook for structural reform, and the economy’ s attractiveness for foreign investors.  Direct 
investment flows had helped to fi nance a major part of the current  account deficit since 2001, as well 
as the sharp growth in worker rem ittances since the 1998/99 financial crisis.  Remittances had reached 
US$3.3 billion in 2005, or roughly 3% of GDP.  From  a development perspective, a drawback was 
that as much as 85% of remittances went to curre nt consumption, with little left for savings and 
investment.  Recognizing this, the Government had be gun to seek ways to direct remittance flows to 
productive investment;  however, these initiatives onl y reached a small portion of remittance flows.  
He asked about Colombia's efforts to facilitate the most productive use of remittances, since many 
developing countries were having similar experiences. 
Trade trends 
15. The share of agriculture in exports had fallen from 37% in 1997 to 21.3% in 2004.  The 
sharpest decline had been in coff ee, but the shares of bananas and cut flowers had also declined:  these 
three products had traditionally accounted for 70%  of agricultural exports.  Manufacturing had 
increased its share in total exports from 30.5% in 1997 to 37% in 2005;  exports of manufactured 
goods had grown by 30% in each of the last two years.  The mining sector (including hydrocarbons) 
had also increased its share in tota l exports, from 31.9% to 38.2%.  However, according to official 
estimates, Colombia would become a net importer of hydrocarbons within ten years.  Since 2000, the 
share of petroleum in total exports had fallen fro m 30.5% to less than 18%.  The shares of the 
United States, EC-25, EFTA, and Japan in Colombia's  imports had declined, while the shares of the 
larger developing countries, in particular China, but also Korea, India, Brazil, Mexico, Chile, and 
Argentina, had increased.  An increasing share of Colombia's exports had been going to the United 
States and other countries in the Western Hemisphere , in particular Mexico, the Dominican Republic, 
Venezuela, and Ecuador, while the shares of the EU and Japan in Colombia's exports had declined;  
the shares of China, East Asia, and India had in creased modestly.  He asked whether this pattern 
reflected the competitiveness of other developing count ries, or whether it was a result of multinational 
companies’ sourcing patterns for inputs.  Much of the trade from Asia appeared to be in components  WT/TPR/M/172 
 Page 7 
 
 
  and parts.  It could be that large multinational companies were beginning to incorporate Colombia 
into their global sourcing networks.  This woul d be expected to continue as Colombia gained 
improved market access through the Doha Development Agenda and free-trade agreements with large 
markets.  He sought information on Colombia's plan s to respond to these changing trade patterns, and 
about steps to manage the adjustme nt to declining agricultural exports .  He asked about the additional 
steps Colombia needed to take to ensure a competitive position in the global sourcing network for 
manufactures;  Colombia's plans to respond to the gr owing importance of Asia in its trade;  and its 
plan for dealing with the declining importance of oil exports. 
Bilateral and multilateral trade relations 
16. The Government was actively seeking market opening on a multilateral basis through the 
Doha Round, while pursuing an active agenda of bila teral trade liberalization.  This strategy seemed 
pragmatic, but questions could be raised about its co herence.  Colombia enjo yed free trade within the 
Andean Community and had free-trade agreements with Mexico and MERCOSUR.  Colombia would 
be signing a free-trade agreement with the United States shortly.  The lesson for the rest of the 
Members was Colombia's strong advocacy of ambitious  multilateral liberalization, even if this meant 
losing some of the preferences from free-trade agre ements and autonomous preference programmes.  
He sought clarification on how Colombia would reconcile its aspiration for a customs union among 
Andean Community members and its free-trade agre ements with third countries.  He also asked 
whether Colombia envisioned a customs union perm itting not only the free flow of goods, but also 
services, capital, and people.   
Trade policy instruments 
17. Colombia had opened its economy considerably since the early 1990s.  It had reduced many 
customs duties and eliminated many non-tariff barri ers.  Colombia’s tariff lines were bound;  although 
there was a considerable gap between applied ra tes, which averaged 12%, and bound rates, which 
averaged 43.1%.  The average applied rate for ag riculture was 16.5%, compared with an average 
bound rate of 92.7%.  In 2004, Colombia had repealed Decree 2439 governing the Agricultural 
Products Absorption Policy, but the allocation of import quotas for each product continued to be made 
on the basis of a bidding system that awarded qu otas to the purchaser of the largest volume of 
domestic production.  In addition, Colombia implemented the Andean price band system, a variable 
levy system applied on a broad range of agricultura l products.  Although this system had not been 
challenged in the WTO, a WTO panel had ruled agai nst an apparently similar system operated by 
another Member.  He enquired about the difficulties that this ruling raised for the continuation the 
Andean price band system, and whether Colombia pla nned to modify its system in light of the panel 
ruling.  During the review period, Colombia had app lied certain internal taxes differentially on foreign 
and domestic goods, for example, the VAT and cert ain consumption taxes were higher for imported 
goods.  Such differential taxes would seem to rai se important issues regarding national treatment.  
Proposed legislation had been sent to Congress to rec tify the situation with respect to the VAT.  He 
sought clarification on the prospects of this le gislation, and whether it would eliminate the 
discriminatory tax treatment. 
Services 
18. In many service sectors, there was a significant gap between the applied legal regime and 
Colombia's GATS commitments.  He asked whet her Colombia would extend multilaterally the 
services commitments undertaken in the context of its free-trade agreements.  Colombia’s situation 
was relevant to WTO Members negotiating more ambitious services commitments in their free-trade 
agreements.  Liberalization of services trade in Colomb ia had been gradual, and slower than in goods. WT/TPR/M/172 
Page 8  
 
 19. In telecommunications, Colombia had undert aken major regulatory reform, resulting in 
significant foreign investment, a reduced government role, and improvements in service quality and availability.  These reforms had enabled large incr eases in the number of lines, teledensity, and 
revenue, and had fostered tremendous  growth in the mobile segment, where the number of customers 
had increased by 60% per year during 2000-05.  Ho wever, Colombia was apparently not pursuing 
telecommunications liberalization fully.  He so ught clarification on the additional steps being 
contemplated to liberalize this sector, and on the results of liberalization to date. 
20. Colombia had also adopted liberal policies in fina ncial services to foster trade and investment.  
Foreign investment flows had been steady and su bstantial, prudential indicators for banking had 
improved significantly, and institutions were record ing increased profitability.  Policy reforms also 
permitted branching and the supply of cross-borde r services.  Although State investment in the 
financial market had greatly diminished since th e 1998-99 financial crisis, several restrictions on 
foreign participation remained, including econom ic needs tests, and prohibitions on insurance 
branches.  In both sectors, Colombia had undertaken  commitments in its free-trade agreements that 
went significantly beyond its GATS commitments, and,  in certain respects, also its practice.  He 
wondered about the course of action vis-à-vis othe r trading partners, and asked about Colombia’s 
experience and plans in other services sectors that were important to enhance a country's competitive 
position, including computer and related services, distribution services, express delivery services, and 
energy services. 
Integrating trade and internal reform 
21. Sound trade policies had to be combined with e ffective internal policies to foster genuine 
competitiveness on a sustained basis.  Colombia was a very interesting case study in this regard, as the 
Government was trying to achieve coherence between its  internal agenda and trade liberalization.  The 
Government had developed a comp rehensive blueprint for improving Colombia’s competitiveness.  
Some of the prominent components of this competitiv eness initiative were:  Tax reform:  as part of its 
efforts to make Colombia more competitive, th e Government had submitted a far-reaching tax reform 
package to Congress.  Transfer system reform:  Colombia continued to face strong fiscal challenges 
heavy non-discretionary spending.  A commissi on had recommended changes in the distribution 
formula, and the Government had introduced a bill  to amend the constitution to fix the problem.  
Pension reform:  government pens ions were an enormous burden on the federal budget.  The 
administration had made repeated efforts to reform the pension regime to reduce the fiscal deficit and 
to make the pension system, partic ularly public pensions, sustainable.  Infrastructure projects:  the 
Government had prioritized a number of large road  and port projects to improve the transportation 
network and take advantage of its free-trade agre ements and the liberalization of foreign markets 
resulting from the Doha Round.  New company formati on:  Colombia had facilitated the formation of 
new companies by substantially reducing red tape, ti me, and cost of establishment.  An environment 
of entrepreneurship was necessary in order to take full advantage of new trade opportunities;  making 
it easier to form an enterprise was essential.  Colombia had reduced the number of formalities 
necessary to establish a business, resulting in near ly 30% less time to complete the process. 
Conclusions 
22. The experience of Colombia in recent years showed that trade could make an important 
contribution to development, but only as part of a broader, coherent economic policy package.  Trade 
liberalization and internal economic reform requi red difficult political decisions, a clear sense of 
priority, and an appreciation that internal and in ternational competition brought better results than 
protection.  By and large, Colombia had emba rked upon such a path.  It still faced significant 
challenges, especially in spreading the benefits of tr ade.  He hoped that this Review would reinforce 
Colombia's commitment to freer trade.  WT/TPR/M/172 
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  IV. STATEMENTS BY MEMBERS 
23. Members welcomed the delegation of Colombia  led by Mr. Muñoz, and appreciated the active 
role of Colombia's Permanent Representative to the WTO. 
24. The representative of Singapore  noted the growing sense of confidence in the Colombian 
economy.  Annual average real GDP growth was 2.2% during 1997-05.  Foreign direct investment 
had increased sevenfold between 1996 and 2005, to reach almost US$40 billion.  Inflation had been 
below 6% in 2004 and 2005, and was expected to rema in below 5% in 2006.  According to the latest 
World Competitiveness Report, Colombia ranked 40th, up seven places from 2005.  Colombia ranked 
second among the most competitive economies in Latin  America.  Colombia had addressed numerous 
challenges through ambitious and far-sighted reforms,  creating political and economic stability.  It had 
been able to recover from the financial crisis of 1998-99 by adopting prudent policies.  Private 
investment, consumption, and exports had grown more  rapidly in recent years.  Colombia had adopted 
a flexible exchange rate and had strengthened fi nancial supervision and re gulation after the 1998-99 
crisis.  Services sector reform had led to incr eased competition, lower prices, and more choices for 
consumers.  In telecommunications, progressive lib eralization since the mid 1990s had attracted 
significant private investment.  There were no legal limitations on foreign capital participation in this 
sector.  Maritime transport was another key area, as 95% of Colombia’s foreign trade was transported 
by sea.  Port reform had led to substantial improve ments in productivity and a sharp reduction in rates 
as a result of increased competition among private handl ers and new investment in container handling 
equipment. 
25. International trade represented up to 40% of  GDP and was vital to the economy.  He 
commended many aspects of Colombia’s trade policy regime.  For example, Colombia had bound its 
entire tariff.  However, there was a sizeable gap between its average bound tariff of 43% and its 
average applied tariff of 12%.  This gap should be  reduced as part of the Doha Round.  The average 
applied MFN tariff rate had increased from 11.5% in  1996 to 12% in 2006.  Colombia should consider 
participating in the Information Technology Agre ement.  Regarding customs measures, Colombia 
used reference prices for certain products, depending  on their origin;  and some imports from certain 
customs territories had to use specific points of en try or were subject to  additional information 
requirements to clear customs.  Singapore had raised  concerns about these measures bilaterally and in 
the Council for Trade in Goods.  Colombia was in the process of reviewing some of these measures, 
and he looked forward to receiving a formal update.  Services accounted for ab out 63% of Colombia's 
GDP in 2005.  Colombia had been among the most active players in the services negotiations.  Its 
GATS schedule did not reflect the importance of  services to its economy:  it had adopted 
commitments in only five of the twelve sectors.  Colombia's extensive reforms did not seem to be 
reflected in its offers.  Colombia should reduce th e gap between its commitments and the current legal 
framework. 
26. The representative of Ecuador  noted that Colombia's economy had grown, along with 
consumption and investment.  Colombia had carried  out broad reforms of its trade and investment 
regime.  Its progress was consistent with multilate ral commitments and would have a positive effect 
on bilateral trade.  Colombia was Ecuador's third- largest trading partner and an important source of 
foreign investment;  Colombia was also a recipien t of Ecuadorean investment.  Bilateral trade was 
US$1.9 billion in 2005.  Exports were US$390 milli on between January and August 2006, up 25.7% 
from a year earlier.  Imports were US$939 during the same period, up 47.9%. 
27. The representative of Guatemala  noted Colombia's importance as a trading partner.  Like 
Guatemala, Colombia had embarked on a process of integration into the world economy and had 
concluded free-trade agreements.  Both countri es were negotiating bilaterally.  Colombia had 
modernized and liberalized its trade regime since 1996.   It was an important participant in the WTO, 
and supported the Doha negotiations.  Colombia participated actively in the agriculture negotiations WT/TPR/M/172 
Page 10  
 
 as a member of the Cairns Group, which sought s ubstantial improvements in market access, and the 
elimination of all export subsidies and trade-dist orting domestic support.  Colombia sought market 
access for tropical products. 
28. The representative of Chinese Taipei
 stated that, despite the 1998-99 financial crisis, 
Colombia had sustained modest macroeconomic gr owth during the review period, with average 
annual real GDP growth of 2.2%.  Growth had accelerated in recent years, largely as a result of fiscal 
and financial reform, and improvement s in the terms of trade and investor confidence.  Bilateral trade 
had increased rapidly since 2003;  Colombia was Ch inese Taipei's third-largest trading partner in 
Central and South America.  Higher policy and administrative predictability on both sides was essential for bilateral trade to expand.  He was enc ouraged to learn that Colombia’s trade policy was 
formulated in strict compliance with internationa l commitments;  however, a few aspects of raised 
concerns.  Colombia had establishe d reference, indicative, and estimated prices for customs valuation 
purposes.  These measures had apparently been amende d to comply with WTO rules. Chinese Taipei 
was looking forward to receiving a formal update.  In July 2006, Colombia had initiated an anti-
dumping investigation against textile exports from Chinese Taipei.  Colombia’s National Chamber of 
Commerce had alleged that the request for the inv estigation had failed the representativeness test in 
the Anti-dumping Agreement.  He asked whether Co lombia planned to review the merits of the 
investigation. 
29. The representative of Canada
 noted that the results of the Democratic Security Policy and 
recent major economic reforms had sent positive signal s to the international community.  The current 
demobilization and reintegration of the United Se lf-Defence Forces of Colombia, and the recent 
announcement of peace talks with the National Libe ration Army, Colombia's second largest guerrilla 
group, represented an opportunity to move towards peace.  She congratulated Colombia for the 
modernization and liberalization of its trading regi me.  Canada and Colombia enjoyed a healthy trade 
relationship.  In 2005, two-way trade was close to Can$1 billion:  Canada's  exports to Colombia 
included paper and newsprint, vehicles, cereals, vege tables, and machinery;  Canada’s main imports 
from Colombia were coal, coffee, bananas, cut flower s, woven apparel, and s ugars.  Canadian foreign 
direct investment in Colombia  was estimated at just under Can$400 million in 2005.  Canada 
supported the goal of free trade with Colombia, along with other members of the Andean Community. 
30. She commended Colombia for its measures to mo dernize and liberalize the trade regime in 
the extractive sector since 1996:  non-petroleum mi ning was almost entirely in the hands of the 
private sector.  Canada appreciated Colombia’s strong commitment to free and open trade.  In 
agriculture, Colombia supported regulations that we re based on science and international guidelines.  
Canada was anxious to re-establish access for its liv e cattle and beef products into Colombia, in 
accordance with OIE guidelines.  Although Colomb ia had improved the treatment and protection 
afforded to foreign investment, controllable risk  perceptions could be improved, for example by 
broadening access to international arbitration;  re vising the Legal Stability Contract Law; improving 
expropriation rules;  and strengthening the investment  law by formalizing the negative list approach to 
the entry of foreign direct investment.  Countries committed to a liberal and transparent trade regime 
were in a better position to enjoy the benefits of international trade and global growth.  Canada 
encouraged Colombia to continue its efforts to  improve the conditions fo r economic growth, which 
should benefit all segments of the population. 
31. The representative of Japan  commended Colombia for the solid recovery of the economy 
from the severe economic and financial crisis in 1998-99.  The Government had firmly managed the 
economy.  Japan appreciated Colombia's devel opment plan and the priority assigned by the 
Government to physical safety, sustainable developm ent, social equity, administrative reform, and the 
reorganization of the economy, among others.  Japan also appreciated Colombia’s commitment to the 
Doha negotiations and its active par ticipation in the WTO.  Colombia had made significant efforts to 
conclude regional trade agreements .  She hoped that regional trade lib eralization would be a source of  WT/TPR/M/172 
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  flexibility in multilateral negotiations.  Colombia a nd Japan had a favourable relationship in areas like 
politics, the economy, culture, and cooperation.  Jap anese immigration to Colombia had been taking 
place for 75 years.  During a visit to Japan in Ap ril 2005, President Urib e had told then Prime 
Minister Koizumi that the bilateral relationship s hould be enhanced through cultural exchanges;  both 
agreed that the revitalization of the bilateral ec onomic relationship would be  mutually beneficial.  
Japan had supported Colombian development mainly through official development assistance, which 
prioritized peace building, social development, so cial equity, sustainable development, employment, 
and the environment, in line with Colombia's national development plan. 
32. Colombia's investment environment could be improved.  The tax system, especially corporate 
taxation and depreciation, could be modified to incr ease its attractiveness to foreign investors.  While 
security in Colombia had improved, it was not sufficient for prospective investors.  Customs 
procedures at the ports of Buenaventura and Cartag ena could also be improved.  According to local 
subsidiaries, customs clearance at these ports took 2-3 days longer that at other ports, because data 
were not entered into the system until the cargo 's arrival, causing severe problems in stock 
management.  The economic and social infrastructure could also be improved.  Local subsidiaries had 
indicated problems with the distribution system.  The lack of sufficient transport infrastructure 
between Bogota and Buenaventura, the only major port on the Pacific coast, increased distribution 
costs, hindering trade with Asia. 
33. The representative of the European Communities  commended Colombia on its sound 
macroeconomic track record in 2 005, which provided a solid basis for the development of trade.  
Colombia had achieved GDP growth of more than  5% in 2005, and unemployment was the lowest 
since 2001.  Forecasts were promising.  These indica tors, and increased security, had fostered greater 
confidence among investors.  The solid macroec onomic performance reflected the high quality of 
Colombia's public administration.  The greatest ch allenge for Colombia was poverty alleviation.  
Remarkable progress had been made:  poverty had decreased from 58% in 2002 to 49% in 2006.  
Colombia should continue to pursue its ambitious  and systematic reform programme to reduce 
poverty further.  Trade policy had an important role to play in this;  he s ought additional information 
on how trade policy was linked to Colombia's povert y reduction strategy.  Co lombia had a relatively 
diversified economy and could act as the motor for further diversification in the region.  Services constituted 53% of GDP;  the development of the se rvices sector, especially in the regional context, 
held significant potential.  The agriculture sector was export-oriented.  Coffee would hopefully be 
granted the status of a protected geographical indi cation by the EC soon;  this would open further 
opportunities. 
34. The EC welcomed Colombia's commitment to the WTO.  Like others, Colombia pursued 
bilateral/regional liberalization (including w ith the EC) and multilateral liberalization;  
complementarities between the two were crucial.  The EC looked forward to launching negotiations 
with the Andean Community towards a compre hensive "WTO-plus" association agreement.  
Colombia's role as the regional motor would be key.  Colombia still maintained measures that 
hindered trade, including import prohibitions, non-au tomatic licensing procedures for a large number 
of goods, cumbersome registration procedures, a nd a variable duty system.  Improvements were 
necessary in technical barriers to trade and sanita ry and phytosanitary measures.  The EC had 
experienced substantial problems with mandatory re gistration requirements.  The EC was keen to 
work with Colombia in defining trade-related tec hnical assistance needs and he sought information on 
Colombia's priorities in this area.  The EC a nd Colombia had been working closely towards an 
ambitious outcome for the Doha Round.  Colombia sh ared the EC's expectation of substantial results 
in 2007 regarding the three pillars of market ac cess (agriculture, industrial goods, and services), and 
rules, coupled with a substantial development package. 
35. The representative of the United States
 acknowledged Colombia's important contribution to 
the WTO.  Colombia was an active participant in  several Doha negotiating groups, and had been a WT/TPR/M/172 
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 passionate advocate of MFN liberalization, despite th e benefits it derived from preferential regimes.  
In the context of the Doha Round, Colombia reco gnized that sustained eco nomic growth was best 
supported by new trade flows.  It had played a co nstructive role in agriculture and non-agricultural 
market access negotiations;  it had also contribu ted in trade facilitation as a fellow member of the 
Colorado Group, and had played an active role in services. 
36. The trade relationship between the United Stat es and Colombia was expanding.  In 2005, the 
United States exported US$5.5 billion in goods to  Colombia, up 21.3% from 2004, and imported $8.8 
billion, up 22%.  U.S. foreign direct investment  was US$3.4 billion in 2005, up 20.7% from 2004.  
The United States looked forward to expanded o pportunities through the U.S.-Colombia Trade 
Promotion Agreement, signed on 22 November:  th is would eliminate tariffs and other barriers on 
substantially all goods and services trade, promot e economic growth, and expand bilateral trade.  
Although a bilateral agreement, its implementation w ould benefit third countries:  for example, the 
agreement required transparency and efficiency in administering customs procedures, with Colombia 
committing itself to publishing its laws and regulat ions on the Internet and ensuring procedural 
certainty and fairness.  It had undertaken broad tr ansparency and due process commitments related to 
trade.  It had also committed itself to joining th e Information Technology Agreement, to eliminating a 
ban on imports of remanufactured goods, and to removing several non-tariff barriers to imports of 
distilled spirits.  The FTA also provided for improve d standards for the protection and enforcement of 
a broad range of intellectual property rights, includ ing software, music, text , and video;  stronger 
protection for patents, trade marks, and test data ;  and deterrence against piracy and counterfeiting 
through strengthened civil, criminal and custom s enforcement.  Regarding e-commerce, Colombia 
had committed itself to non-discriminatory treatme nt of digital products, and to refraining from 
customs duties on electronically delivered products.  On competition policy, Colombia had committed 
itself to prohibiting anti-competitive business conduc t, and maintaining competition agencies to 
enforce competition laws.  Colombia had begun to  open its government procurement to foreign 
suppliers;  he encouraged Colombia to con tinue this process and to accede to the GPA. 
37. U.S. support to trade capacity building in Co lombia, which totalled US$50.6 million in 2005, 
was directed at trade facilitation, trade-related infrastructure, and environmental standards, among 
others.  Substantial assistance was expected to continue as Colombia implemented its free-trade 
agreement with the United States.  The Colombian Government had reoriented trade policy toward 
being highly proactive, outward looking, and refo rm minded.  The FTA with the United States was 
part of a larger agenda that included an amb itious outcome to the Doha Round, and a series of 
bilateral negotiations to secure greater market access.   He sought clarification on the Government's 
internal reform agenda to spur competitiveness. 
38. The representative of Hong Kong, China
 indicated that bilateral trade relations with Colombia 
were very good.  Bilateral trade had increased by  10% between 2004 and 2005;  and by 23% in the 
first eight months of 2006, over the previous y ear.  He commended Colombia for its macroeconomic 
reforms, and was pleased to note its progress in opening and improving its trade regime since 1996.  
However, the picture was mixed.  On the credit side, Colombia had bound all tariff lines, enhancing 
predictability.  On the debit side, this predicta bility was undermined by the large gap between the 
bound and applied rates.  Moreover,  the average applied rate had increased slightly to 12% in 2006;  
all this created uncertainty, which discouraged tr ade and investment.  Colombia should address these 
issues.  In early 2006, Colombia had identified more than 140 laws and administrative acts as 
technical regulations, only 23.3% based on interna tional standards:  there was room for further 
harmonization with international st andards to facilitate trade.  Th e services sector accounted for 63% 
of Colombia’s GDP in 2005.  Continued efforts by Colombia in liberalizing services trade could 
potentially result in new market opportunities for its trading partners, and contribute to Colombia's 
economic development.  Colombia had embarked on ambitious reforms in services but had made 
commitments in only five of the twelve sectors under the GATS.  He looked forward to additional 
multilateral engagement in the excluded sectors, an d to continued and progressive liberalization in  WT/TPR/M/172 
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  sectors with commitments.  The ratcheting down of autonomous liberalization through GATS 
commitments would provide the predictability that w as often the spur to new investment.  Colombia's 
withdrawal of its offer on maritime transport services was disappointing, and he encouraged Colombia to consider offering more commitments in this sector, as 95% of its foreign trade was 
transported by sea.  He encouraged Colombia to  remove its MFN exemption for financial services, 
which subjected foreign access to reciprocity. 
39. The representative of Honduras
 noted the positive performance of Colombia's economy.  
Growth had accelerated in recent years, led by priv ate investment, consumption, and exports.  The 
merchandise trade balance had been positive since 1999, and the trade balance had registered a 
surplus of between 0.3% and 3.1% of GDP.  He commended Colombia for the modernization of its 
trade regime, including the simplification and automa tization of customs procedures, and the creation 
of the single trade window and single trade form.  Th is had facilitated and increased trade.  Honduras 
and Colombia had begun negotiations towards a free-trade agreement in early 2006.  These 
negotiations would allow bilatera l market opening in goods and servi ces, and would attract direct 
investment to create jobs.  Differences in developmen t levels and special and differential treatment to 
Honduras were part of the negotiations. 
40. The representative of Thailand  commended Colombia for overcoming the financial crisis of 
the late 1990s by reforming its macroeconomic polic ies and liberalizing its trade regime.  Colombia 
had bound its entire tariff, and all tariffs were ad valorem,  which enhanced predictability and 
transparency.  Colombia had also reduced import registration formalities by 60%, and had introduced 
computerized import procedures;  up to 80% of im port formalities could be completed in 80 minutes, 
resulting in remarkable gains for Colombia.  It was not surprising that Colombia's recovery and 
economic growth stemmed from changes to its tr ade policies, as international trade represented 
approximately 40% of its GDP.  Colombia's achi evements illustrated the benefits of openness for 
developing countries.  Colombia's real GDP grow th rate had increased from 1.9% in 2002 to more 
than 5% in 2005;  its investment rate of 22% of  GDP was at a 25 year high;  and exports were 
growing at an annual average of more than 6%. 
41. Colombia could improve its economic perform ance and trade environment by ensuring 
national treatment in the application of VAT to imported vehicles, changing its price band system, 
eliminating local-content requirements for allocating tariff quotas, abolishing certain pricing practices 
for customs valuation purposes, and by notifying tr ade measures to the WTO.  She requested an 
update on Colombia's safeguard me asures on imports of Thai textiles.  Services comprised 63% of 
Colombia's GDP in 2005:  Thailand commended the r ecent liberalization of the legal framework for 
services, and urged Colombia to expand its services commitments.  She recognized Colombia's contribution to the Doha negotiations. 
42. The representative of Turkey
 noted that Colombia's economy had improved since 1996 due to 
ambitious financial reform.  Solid economic growth  had contributed to overcome the deep financial 
crisis of 1998-99.  Colombia had taken steps to m odernize and liberalize its trade regime, resulting in 
more predictability.  Colombia was an original WTO Member, and had participated actively in the 
Doha negotiations.  Although Colombia attached priority to preferential trade agreements, it 
recognized the contribution of the multilateral trading system to predictability.  She encouraged Colombia to respect the rules of the multilateral trad ing system in its preferential trade agreements.  
Colombia had simplified its customs proce dures;  and all tariffs were bound on an ad valorem  basis, 
increasing predictability.  However, there was a substantial gap between bound and applied rates. 
43. The representative of Bolivia
 welcomed Colombia's progress in implementing and modifying 
its trade and economic legislation to integrat e into an increasingly complex and competitive 
international reality.  Colombia was an important trading partner for Bolivia.  It had managed to 
sustain GDP growth since 1997, notwithstanding an acu te economic and financial crisis.  Recent and WT/TPR/M/172 
Page 14  
 
 future growth rates would have a positive impact on the region.  Colombia's exports had performed 
very well during the past five years, and the trad e balance had been positive.  Agri-food trade with 
Colombia was important.  Colombia had achieved re latively high levels of foreign investment, which 
had contributed significantly to GDP growth.  Bolivia and Colombia attached importance to 
continuing the Doha negotiations:  more market  opening for developing countries had to be 
accompanied by the elimination of hidden trade barriers to ensure an improvement in living standards.  
New initiatives to integrate Colombia into the inte rnational economy should reinforce the 35-year old 
integration process with Bolivia, whic h had to be preserved and deepened. 
44. The representative of the Dominican Republic
 noted the modernization and liberalization of 
Colombia's trade regime.  Tariff barriers had been reduced, and important reforms, particularly in 
services, had increased competitiveness.  Areas of concern were:  high bound rates;  the export 
subsidy regime;  and non-automatic import licensing. 
45. The representative of Peru  noted Colombia's significant efforts to modernize and liberalize its 
trade regime, resulting in fewer non-tariff barriers, market opening, an open investment regime, and 
economic growth.  Colombia was also committed to the multilateral trading system and called for the 
prompt reactivation of the Doha negotiations.  Co lombia and Peru were members of the Andean 
Community.  Bilateral trade had increased considerably  during the last decade, largely due to regional 
trade liberalization.  Both countries had participated  actively in the negotiations to reform agricultural 
trade, and had supported an ambitious Round to en sure maximum trade liberalization for tropical 
products and alternative crops.  Colombia's agricu lture was shifting away from illicit crops, reflecting 
significant efforts to reduce the ar ea devoted to coca production.  This should prompt WTO Members 
to take into account the principle of international co-responsibility in the fight against drug trafficking.  
He commended Colombia for its national sanitary and food safety policy, and the creation of the National Commission on Sanitary and Phytosanit ary Measures.  This would improve domestic 
systems and transparency.  He sought clarifica tion on certain subsidy programmes maintained by 
Colombia. 
46. The representative of Switzerland
 noted that his country was Colombia's fourth largest trading 
partner in Latin America.  Swiss firms were active in key sectors of the Colombian economy, including food, pharmaceuticals, chemicals, machin es, and cement.  Mining firms headquartered in 
Switzerland had recently invested heavily in Colo mbia.  Switzerland was among the most important 
foreign investors in Colombia.  He commended Colomb ia for its fiscal and exchange rate reforms in 
response to the 1998-99 financial crisis.  Colombia had made significant progress, for example in 
reducing its foreign debt since 2003.  Macroeco nomic reforms had led to increased investor 
confidence.  However, the economy faced significan t challenges:  for example, the current account 
was being financed by foreign direct investment, implying that international confidence in the Colombian economy had to be stre ngthened, including through increased security and the peaceful 
settlement of internal conflicts.  Major efforts would be required to address the central government 
deficit, reduce public debt, improve income distribu tion, and reduce poverty.  In this context, he 
praised institutions providing micro-credit to the poo r (e.g. Opportunities Bank);  these could play an 
essential role in decreasing informality, thereby broa dening the tax base.  The anti-piracy agreement 
between the Government and the private sector w as a very good initiative that should be strengthened 
through the smooth enforcement of rules, in particul ar the registration of new pharmaceutical patents. 
47. The Colombian economy was highly open, with in ternational trade representing 40% of GDP.  
During the review period, Colombia had strengt hened economic ties with other countries in 
Latin America, and had played a very active role in the regional integration process.  Colombia had 
established closer economic links with Mexico, Ce ntral America, the Caribbean, and MERCOSUR;  
this would contribute to increased competition, productivity, and living standards.  He commended 
Colombia for its emphasis on regional trade:  it was seeking closer relations with the United States, 
the European Communities, and EFTA through free- trade agreements, which would benefit the  WT/TPR/M/172 
 Page 15 
 
 
  Colombian economy.  Switzerland shared Colombia 's concern about the suspension of the Doha 
negotiations;  a positive outcome was possible provi ded parties brought their expectations to a 
realistic level.  He commended Colombia for its ac tive participation in the Doha negotiations and the 
WTO.  Switzerland invited Colombia to join th e GPA to improve market access opportunities for 
Colombian and Swiss companies. 
48. The representative of Brazil  commended Colombia for its solid economic growth, reduced 
vulnerability to external shocks , lower unemployment, higher investment rate, improved fiscal 
position, and its high-quality coffee.  Colombia ha d overcome a serious cris is in 1998-99, and had 
created a favourable macroeconomic environment to attain its medium- and long-term plan of high 
economic growth, low inflation, and reduced unemp loyment.  Colombia had modernized its trade 
regime.  It had reduced non-tariff barriers signifi cantly and had consolidated its entire tariff, 
increasing predictability.  Tariff rates were ad valorem .  Colombia had introduced important 
initiatives to simplify customs procedures, resulting in  reduced times for import registration.  Such 
initiatives had been accompanied by the dynamic performance of manufacturing exports, which 
increased at an annual rate of 30% in 2004 and 2005.  Colombia had adopted specific commitments in 
5 of 12 GATS sectors.  It had also signed the telecommunications and financial services protocols. 
49. Bilateral trade had increased, from US$540 million in 1996 to almost US$2 billion.  Brazil's 
exports accounted for almost 8% of Colombia 's 2004 imports, making Brazil Colombia's second 
largest trading partner.  Bilateral trade flows acc ounted for 20% of Brazil's trade with the Andean 
Community, and 10% with ALADI.  The free-trade agreement between the Andean Community and 
MERCOSUR would foster trade flows and promote i nvestment.  Brazil and Colombia's efforts to 
marry economic growth with equity, a sustained incr ease in standards of living, and the reduction of 
poverty faced challenges.  He was pleased that Colombia viewed the Doha negotiations as an 
opportunity to strengthen the multilateral trading sy stem, and to show that multilateral trade can 
benefit all nations.  Brazil and Co lombia shared the priority to reduce domestic support and subsidies 
that distorted agricultural production and trade.  Co lombia's price band system insulated Colombia's 
agricultural market from international competiti on.  The conditions for importing agricultural 
products at the in-quota tariff rate created additiona l distortions by linking access to the quota and the 
acquisition of domestic production.  Many of the broad range of products affected by these 
mechanisms, including pig meat, chicken, milk, wheat,  corn, rice, soybean, and sugar were of interest 
to developing country exporters.  There was di sparity between Colombia's applied and bound tariff 
rates.  This pointed to the protection of the ag riculture sector, of great importance to Brazilian and 
other developing country exporters. 
50. The representative of Chile  noted that the bilateral relationship with Colombia was excellent.  
A new bilateral free-trade agreement would soon  replace the Economic Complementation Agreement 
in force since 1994.  The new FTA covered not onl y trade in goods, but also services, intellectual 
property, and government procurement, among others.  Bilateral trade flows had increased by almost 
200% since 1994, reaching US$350 milli on during the first semester of 2006, with a surplus for Chile.  
Colombia had consolidated its position as an excel lent destination for Chilean investment, which 
amounted to US$3.4 billion (10% of total Chilean i nvestment abroad), and was mostly in retail, 
financial services, and electricity generation and dist ribution.  There had also been capital flows from 
Colombia to Chile, including in Santiago's public transport services.   This reflected Colombia's 
favourable business environment, which was a r esult of the economy's strength and Colombia's 
openness. 
51. Colombia had reduced and simplified customs procedures, and had gradually eliminated 
export subsidy programmes, which had been subject to a WTO waiver until 2006.  Some aspects of 
the trade regime were cause for concern.  For ex ample, Colombia relied heavily on import licensing, 
and he asked whether Colombia was considering eliminating these measures.  Almost half of 
Colombia's imports were subject to irregulariti es, including contraband, which was a recurrent WT/TPR/M/172 
Page 16  
 
 problem in the region.  He sought information on Co lombia's experience in fighting contraband.  The 
tax treatment afforded to certain domestic and imported goods differed;  he hoped that Congress 
would eliminate this differential treatment soon.  Chile and Colombia shared similar visions of the 
multilateral trading system.  Both sought freer and fairer trade with real market access opportunities, particularly in agriculture, and the elimination of trade distorting agricultural support.  Colombia and 
Chile were members of several "groups of fri ends", including the Cairns and Colorado Groups. 
52. The representative of Costa Rica
 noted his country's close ties with Colombia in many areas 
of the WTO.  He shared Colombia's view that the real contribution of the Doha Round would be 
increased market openness, making it necessary for all WTO Member to undertake commitments.  
Costa Rica and Colombia had promoted the liberali zation of tropical and alternative products.  He 
appreciated Colombia's efforts to strengthen the multi lateral trading system and its commitment to the 
WTO.  Colombia's economy had recovered in recent years, and it had made efforts to improve the 
investment climate.  The outlook was favourable, with economic growth forecasts of between 4.5% 
and 5%, low inflation, and a decrease in unemploym ent.  These were encouraging indicators for a 
country seeking to improve living standards.  Trad e and investment had played a crucial role in 
Colombia's recovery.  Colombia had maintained a positive merchandise trade balance since 1999.  As 
in previous years, Colombia had registered a trade surplus of US$221 million with Costa Rica in 
2005.  Although Costa Rica's exports to Colombia were modest, Colombia was Costa Rica's main 
export destination in South America.  Investment, including foreign direct investment, had been a 
motor for economic growth in Colombia, which had ma de important efforts to improve the investment 
climate and increase legal security.  This had increased investor confidence in Colombia. 
53. The representative of Mexico  noted that his country and Colombia were joined by more than 
trade;  they shared a common language and cu lture, and strong indigenous roots, and a young 
population.  Unfortunately, they also shared poverty,  among other problems.  Bilateral trade relations 
were healthy and solid.  The free-trade agreement between Colombia and Mexico was an example of 
deep integration, covering practically all trade in goods and services, and investment;  it also had a 
modern dispute settlement scheme, which had not been used.  The average tariff  in the context of the 
free-trade agreement had fallen to 1.2%, and would c ontinue to fall.  This had resulted in growing 
bilateral trade, which had increased from US $550 million in 1995 to US$1.63 billion in 2005, an 
annual growth rate of 11.4%.  Co lombia's exports to Mexico ha d increased by 592% during this 
period, making Mexico Colombia's fifth largest tr ading partner.  Bilateral trade in 2006 was up 40% 
from a year earlier.  Colombia and Mexico had wo rked together in the Doha negotiations, sharing 
similar positions in agriculture, co-sponsoring a proposal on non-agricultural market access, and 
working closely together in services.  Both countri es had cooperated as part of the "Friends of Anti-
dumping" group, and shared similar positions on trade facilitation, dispute settlement, trade and 
development, and trade and environment, among othe rs.  Economic reforms, including trade reforms, 
had permitted annual GDP growth exceeding 5%.  This  growth was related to Colombia's increasing 
participation in world trade.  He encour aged Colombia to persevere with reform. 
54. The representative of Australia  noted his country's modest but solid commercial links with 
Colombia.  There was potential for expanding such links in coming years, particularly in mining and in some service sectors.  Austra lia and Colombia worked together in various multilateral fora;  they 
shared the goal of global trade liberalization, a key driver for economic gr owth and development.  
Australia and Colombia enjoyed a close and cons tructive relationship in the Cairns Group, which 
sought to advance comprehensive agricultural trade reform.  Colombia attached importance to the 
contribution that the Doha Round could make to developing countries through increase market openness.  He supported the general observations made by the Secretariat and the discussant regarding 
improvements to Colombia's trade policies.  He enc ouraged Colombia to liberalize its services regime 
further, including through improved GATS commitments.  WT/TPR/M/172 
 Page 17 
 
 
  55. The representative of Argentina  noted that Colombia's progress had been based on industrial 
policies compatible with multilateral trade rules. Reforms undertaken on fiscal, exchange rate policy 
and on the regulatory framework during 1998-99  had introduced a positive environment and 
macroeconomic stability.  He highlighted Colombia 's participation in the DDA, including its views 
to advance the objective of development throug h proposals on market access, and the proposal 
for greater access for the movement of service providers (physical persons) from developing 
countries.  Colombia's policies included the use of tariffs, export promo tion programmes through free 
zones and import/export zones, export charges on certain products used to finance special 
development funds and to ensure sufficient do mestic supplies, and the use of government 
procurement for the development of domestic firms.   Such measures had helped to increase the share 
of manufactures in exports, particularly of machinery, transport equipment, and textiles.  Policies on 
product diversification and expor t promotion had allowed increased trade with Latin American 
partners, and Complementarity Agreement No. 59  between some Andean countries and MERCOSUR 
offered a framework for a greater south-south trade. 
56. The representative of China  noted that Colombia's ambitious reforms in many economic 
sectors had resulted in increased competition, lo wer prices, and expanded choice for consumers. 
China also commended Colombia's continued m odernization of its trade regime, including 
simplifying and computerizing customs procedures. China was encouraged by Colombia’s active role 
in all aspects of the WTO.  Bilateral relations had ne ver been so close:  the volume of bilateral trade 
had increased 41% in 2004-05.  Ever expanding eco nomic cooperation was occurring in various areas, 
including a comprehensive bilateral agreement on economic and technological cooperation.  China 
noted, however, concerns on certain aspects of Colombia's trade regime, including the use of 
reference prices on shoes and textiles. 
57. The representative of Nicaragua  observed that Colombia had drawn important lessons from 
its financial crisis of the 1990s, by adopting importa nt economic, legal, and social measures.  Such 
actions had made it possible to achieve economic growth rates above the average for the Western 
Hemisphere.  This had helped to reduce unempl oyment, balance the public budget, and increase 
public security.  In the context of the multilateral tr ading system, Colombia had also made important 
contributions to the DDA negotiations, and Nicar agua shared Colombia's position on agricultural 
negotiations aimed at obtaining significant reductions in the three pillars being negotiated.  Nicaragua 
also noted the important issues raised by the discu ssant, which included the challenge of maintaining 
macroeconomic stability while accommodating econom ic and social policies aimed at reducing 
poverty and improving income distribution.  A rela ted topic concerned the measures that could be 
taken to ensure that remittances were used for productive purposes. 
58. The representative of Korea  noted Colombia's significant progress in modernizing and 
liberalizing its trade regime, and its economic gr owth.  Building on this economic success, Korea 
encouraged Colombia to accelerate its ambitious economic reforms, which would bring further 
economic benefits.  Korea and Colo mbia had traditionally maintained close and amicable political and 
economic relations.  In particular, in recent year s, bilateral trade and investment relations had 
increased greatly with bilateral trade reachi ng over $800 million in September 2006.  Korea's 
investment in Colombia had also increased, to $35 million.  Korea appreciated that Colombia has 
bound all its tariff lines.  However, Korea encouraged  Colombia to further en hance the predictability 
of its trade regime by addressing the substantia l gap between the applie d and bound tariffs.  In 
addition, Korea noted with concern that Colo mbia imposed VAT and consumption tax in a 
discriminatory manner on some imported products, such  as motor vehicles.  Korea urged Colombia to 
simplify its tax system and remove the discrimin ation against imported goods;  Korea was pleased 
that the Colombian government was in the process of  introducing legislation to address this problem.  
59. The representative of Barbados  applauded Colombia’s efforts to intensify trade as an 
instrument of their economic development.  Barba dos noted the varying levels of trade agreements WT/TPR/M/172 
Page 18  
 
 undertaken by Colombia with large and developed as well as small countries.  Barbados also noted the 
Partial Scope Trade Agreements that Colombia main tained with small Caribbean economies.  As the 
Caribbean deepend its own integr ation, and Latin America (LAC) built bridges between different 
trading blocks, it was is not inconceivable that LA C would progress beyond partial scope towards full 
scope trade arrangements, and even the Free Trade Area of the Americas. 
60. The representative of Benin
 noted Colombia's commitment to promote growth and use trade 
as an effective instrument for social and economic  development.  Its good performance had been due 
to ambitious reforms undertaken in a number of sectors, including services, transportation, telecommunications.  Notable reform measures included those on investment policies, security and democracy, strengthening of investors confidence a nd fiscal measures.  Important reforms, undertaken 
to simplify and computerize customs procedures, ha d contributed to market access for goods.  Despite 
progress in reform and economic development, chal lenges remained to ensu re more competiveness, 
consolidate the fiscal balance, and economic develo pment.  Benin called on other partners to offer 
cooperation that would contribute to the achievement of Colombia's goals. 
61. The representative of El Salvador
 congratulated Colombia for its achievements in economic 
growth and macroeconomic stability.  Structural refo rms, such as tax reform, would further contribute 
to a good short- and long-term economic outlook.  Im portant measures had been taken in the service 
sector (telecommunications and transportation).  He noted that Colombia's Superintendency of Trade 
and Commerce has functions that include the prom otion of competition, consumer protection, and 
industrial property.  El Salvador recognized Colo mbia's work on intellectual property issues, in 
particular in relation to copyrights, for whic h Colombia had established a bureau to implement 
electronic registration procedures.  El Salvador noted bilateral cooperation on projects on intellectual 
property; strategic alliances in construction services;  tourism; and export promotion.  Colombia and 
El Salvador were in the process of negotiating a free-trade agreement.   
62. The representative of Pakistan  noted Colombia's progress in m odernizing and liberalizing its 
trade regime, which included the consolidation of  all tariffs; its decision to phase out all export 
subsidies in free-trade zones;  and reforms in th e services sector.  In the DDA, Colombia played an 
active and positive role supporting the reduction of domestic support s ubsidies, elimination of trade 
barriers, and stronger disciplines on trade facilitation.  Despite its opening up, average tariff protection 
had increased and there was a gap between applied an d bound rates.  Pakistan expressed concerns on 
Colombia's use of non-automatic import licensing on products such as textiles, along with special 
import duties and a consular fee.  Despite its formal implementation of the WTO Customs Valuation 
Agreement, Colombia still used reference prices for imports of textiles and clothing.  
63. The representative of India  highlighted Colombia's policy reforms, the progress made in 
modernizing and liberalizing its tr ade regime, and the improvements in the investment climate.  
Bilateral trade increased from US$10 million in 1994  to US$465 million in 2005-06.  India’s exports 
to Colombia accounted for much of this trade.  Di fferent lines of export credit were open for bilateral 
trade.  India had also started various investment projects in Colombia's hydrocarbon sector.  Some of 
the leading Indian information technology (IT) comp anies have opened several IT training centers in 
various cities of Colombia.  Cooperation also exis ted between the major business associations of India 
and Colombia. 
64. The representative of Uruguay  noted Colombia's active participation in the WTO and its 
commitment to the multilateral trading system.  Ur uguay also noted the progress made to modernize 
and liberalize Colombia's trade regime and, in  parallel ambitious econom ic reforms.  Uruguay 
applauded Colombia's contribution to the WTO negotiations, particularly on agriculture where 
Colombia and Uruguay shared the view that the same rules should apply to trade in all goods.  WT/TPR/M/172 
 Page 19 
 
 
  65. The representative of Norway  noted Colombia's significant progress in reforming its 
economy, most notably in the services sector, by increasingly liberalizing its investment regime.  The current growth seemed largely driven by the re forms.  According to the UN Economic Commission 
for Latin America and the Caribbean (ECLAC),  between 1990 and 2004 Colombia was among the top 
destinations for FDI in Latin America.  Furthe r boosting investor confidence to uphold this positive 
trend would be obvious challenge.  Norway welcomed the liberalization of services and 
telecommunications in Colombia.  In addition, the predictability of Colombia’s services regime has 
clearly improved.  However, there was scope for further improvements in services by reducing the gap between GATS commitments and the existing le gal framework.  Colombia was engaging in a 
number of regional and bilateral initiatives, includi ng closer contacts with the European Free Trade 
Association.  As a member of EFTA, Norway looked  forward to strengthening bilateral cooperation. 
66. The representative of Jamaica
 commended Colombia for its macroeconomic performance in 
recent years.  Jamaica also noted Colombia's active role in all aspects of the work progamme of the 
WTO, including the Doha negotiations.  Colombia c ontinued to advocate the need for further market 
liberalization that would result in enhanced ma rket access opportunities.  Colombia placed great 
importance on regionalism as an integral element of its overall trade policy framework;  it had entered 
into a number of preferential and free-trade arra ngements with a number of countries in the western 
hemisphere, including CARICOM countries.  The Colombia-CARICOM trad e agreement recognized 
and made allowances for the different levels of economic development within CARICOM and 
between CARICOM and Colombia.  Such recognition indicated that Colombia was mindful that the size and structure of a country’s economy were critical  determinants in the level and extent to which it 
would be able to undertake trade liberalization. 
67. The representative of Panama
 noted the historic bilateral links  of cooperation, friendship, and 
trade.  Colombia was one of Panama's principa l trading partners and the main destination of 
Panama's exports to South America.  Bilateral tr ade increased significantly on annual basis.  Panama 
congratulated Colombia on its achievements aimed at deepening and liberalizing trade and increasing 
investment.  In this context, after various exchanges in recent months, it had been possible to clarify 
Panama's questions in connection with certain legislation and procedures that authorized the 
application of certain customs measures on Panama's  exports to Colombia.  Panama and Colombia 
reached a mutually satisfactory agreement on 31 Oc tober 2006, ending the restrictive measures 
against Panama;  this should increase bilateral trade.  The resolutions that eliminated these restrictions 
had been published in the Diario Oficial de Colombia  on 1 November 2006.  Formal notification on 
this matter would be presented to the relevant WTO bodies. 
68. The representative of Bolivarian Republic of Venezuela  congratulated Colombia for the 
positive results presented in its thir d TPR, which were encouraging for example for GDP, inflation, 
and unemployment.  Colombia was one of the prin cipal trading partners for the Bolivarian Republic 
of Venezuela.  Bilateral trade was about US$3 billio n and projections indicated that this level would 
continue to increase.  Upcoming bilateral initiatives,  such as the agreement for the construction of a 
gas pipeline, would continue to increase bilateral trade.  The sove reign decision by Venezuela to 
withdraw from the Andean Community and from the G-3 Group, did not affect present or future bilateral trade, as the bilatera l preferences were maintained. WT/TPR/M/172 
Page 20  
 
 V. REPLIES BY THE REPRESENTATIVE OF COLOMBIA AND ADDITIONAL 
 COMMENTS 
69. The representative of Colombia thanked Memb ers and the discussant for their valuable 
comments and questions about Colombia’s trade po licy.  He responded to queries under three main 
themes:  (a) economic and institutional framework;  (b) trade policies by measure;  and (c) sectoral 
policies.  
(i) Economic and institutional framework 
70. Colombia noted that the domestic armed c onflict was known by everyone.  Previous 
governments had sought to strengthen democracy, to recover public security.  On these issues, the 
economic situation and performance played a fundame ntal role.  At the same time as Colombia had 
introduced a strategy to strengthen democratic in stitutions, it had gone thro ugh a period of political 
and economic stagnation.  However, these negative trends had been overcome and there had been a 
period of recovery in recent years.  Achievemen ts included not only the recent sustained economic 
growth but also gains in social goals and the fight against poverty, which has been reduced by 
10 percentage points.  Ten years ago, a total of  28 million people out of Colombia's population of 
44 million, lived below the poverty line;  that numbe r had been reduced to 6 million people.  Poverty 
indexes had thus been reduced from 58% to 49%;  these rates were still too high.  An economic 
growth rate of 5% was considered a necessary condi tion to ensure that children and the elderly were 
nourished, to widen the coverage of basic e ducation and health, to provide access to basic 
infrastructure, and to boost public confidence.  Th e key challenge was how to reproduce the benefits 
from growth to reduce poverty and income inequality.  The 2002-06 development plan was 
complemented by another plan for the period 2006-10 “Towards building a Community State:  
Development for All”.  This plan was aimed at re ducing poverty levels from 49% in 2005 to 40% in 
2010.  The role of the external sector in support of these policies was of fundamental importance.  
More exports of goods and servi ces would boost the economy beyond the capacity of the domestic 
demand.  Colombia also aimed to change its export base to include more specialization and  
value-added industrial produc ts.  In this process, although the agri culture sector had lost share in total 
exports, recent developments in the trade bala nce showed a tendency to wards more value-added 
export products and less expensive import products .  Specialization in products in which Colombia 
was more competitive should continue, due to th e positive effect on workers' incomes and the 
availability of product choice for consumers. 
71. Colombia noted that the export of services, in particular tourism, should complement the 
internationalization process.  Part of the current acco unt deficit of the balance of payments had been 
financed through remittances.  Earnings from remitta nces had been growing, and their relative weight 
of about 3% of GDP was lower than the levels in other Latin American economies.  For this reason, 
the evolution of remittances did not have fundament al macroeconomic implications for Colombia.  
The Government had policies in place to encourag e remittances to become productive investment.  
72. The progressive elimination of trade barrier s, and innovations in transportation, 
communications, and distribution, had transformed production methods.  There was also a trend for 
outsourcing production to foreign facilities.  Colomb ia had a supply of skilled workers at competitive 
costs.  Its approach to competitiveness had to take  into consideration the improvement in physical 
infrastructure and communications. 
73. The reduction in reserves of hydrocarbons and mining was a direct threat to Colombia' 
economy;  Colombia was becoming a net importer of hydrocarbons.  For this reason, the 
consolidation of a long-term energy policy was of strategic importance.  The Government was seeking 
to base this policy on two issues:  the auctioning of new areas of exploration, and providing economic 
incentives to  expand exploitation.  A new programme  had been designed with the goal of mixing of  WT/TPR/M/172 
 Page 21 
 
 
  15% of combustibles from vegetable origin with t hose from fossil origin by 2010.  To this end, 
starting in 2007, a risk capital fund would be establis hed to promote private investment in production 
of ethanol and biodiesel.   
74. In terms of regional integration, the representativ e of Colombia noted that the links with the 
Andean Community had both a trade and a political  dimension.  The productive structures of member 
countries were very different.  A free-trade area was under operation and covered the entire tariff.  
Even though a common external tariff had been agreed upon, it had not been implemented.  In addition, each Andean Community member had follo wed a different path to integrate into the 
international economy by means of negotiating prefer ential trade agreements with third countries.  
This made it very difficult to implement the A ndean Community's CET.  Colombia viewed the 
Andean Community currently as a project to cons olidate a free-trade area covering goods, services, 
public procurement, and investment .  Thus, Colombia's trade policy was based in obtaining, in the 
long run, stable preferential access in its main export markets for goods and services.  This goal was 
being sought through two means:  the negotiation of bilateral or plurilateral free-trade agreements, and 
the multilateral trade negotiations.  
(ii) Trade policies by measure 
75. Customs issues had become an important area of work in recent years, and important results 
had been obtained in terms of the computerizing,  simplifying, and reducing customs procedures.  
76. Colombia had made use of reference prices fo r certain products depending on the origin and 
the place of importation.  In addition, restrictions  allowed entry into Colo mbia only through specific 
ports and airports.  Colombia informed Members that such measures were abolished on 31 October 
2006. 
77. In connection with the differential applica tion of sales taxes on certain imported auto 
vehicles, motorcycles, and sport and recreational ship s, Colombia confirmed that there was a draft law 
proposed before its National Congress that would el iminate this differential treatment on imports. 
78. Regarding the application of the consumption ta x on certain imported alcoholic beverages, 
Colombia stated that the discriminatory measure, no ted by various delegations, did not exist.  Law 
223 of 1995, was quoted in the Secretariat Report, st ated that the tax base of the consumption tax on 
imported goods was determined on the customs valu e of goods plus a 30% trade margin.  Law 788 of 
2002, changed the previous methodology for the setti ng of the tax base and, as a result, imported and 
domestic goods were now treated in the same manner;   the new charge was a function of the alcohol 
level of the beverages. 
79. Concerning trade barriers in the form of im port prohibitions, non-automatic import licences, 
and complex registry requirements, Colombia not ed that the import prohibition and non-automatic 
import licences were related strictly to the need to protect the health and life of humans, animals, and 
plants;  public morality; the environment; and for reasons of national security.   
80. The non-automatic licences were applied on 1.9%  of total tariff lines. The registration of 
imports affected 38% of tariff lines.  Import registra tion was also maintained according to sanitary or 
technical requirements and the procedures had been  regulated to avoid creating unnecessary obstacles 
to trade.   
81. Colombia had made significant efforts to st op using export subsidies, and subsidies on 
gasoline and combustibles had been eliminated.  Th is situation complied with WTO commitments to 
eliminate export subsidies on non-agricultural goods, and eliminated the economic distortions that WT/TPR/M/172 
Page 22  
 
 such subsidies created.  Colombia reiterated its co mmitments to dismantle export subsidies by the end 
of 2006.  
(iii) Sectoral policies 
82. Agriculture was essential to all countries.  In Colombia, agriculture was also associated with 
the policies to promote democratic security, the pr esence of agricultural producers in the countryside, 
and the fight against illicit crops, of which it was an essential element.  Colombia thus understood that 
a competitive agriculture sector was essential for its  modernization process.  The Andean Price Band 
System was used for imports of some agricultural pr oducts;  this system consisted of a procedure to 
calculate ad valorem  tariff duties administered by the S ecretary of the Andean Community.  The 
parameters, prices, and periods used in this sy stem, came from international sources, and were 
calculated every 15 days.  National customs authorities did not have discretion in  the determination of 
the tariff rates. 
83. The mechanism for the administration of agri cultural tariff rate quotas (TRQs) had limited 
applicability on five types of product:  corn, sorghum,  soya, rice, and cotton.  It was different from the 
domestic crop absorption policy mechanism, which had been abolished.  According to the authorities, 
Colombia's current TRQ mechanism did not prohi bit imports as it allowed unrestricted imports 
through the payment of MFN tariffs.   
84. In infrastructure, the Programme for the Development of Highway Concessions 2006-14 was 
being implemented.  The goal was to improve capacity to transport goo ds from ports to destinations in 
the interior.  Priority had been given to projects giving access to the principal maritime ports, which would be developed through public-private projects.   In services, liberalization commitments had 
been incorporated both in the multilateral trad ing system and in regional and bilateral trade 
agreements.  Initial commitments ha d been partial, and subsequently , deeper commitments had been 
made in the negotiations on telecomm unications and financial services.   
85. The regulatory framework for telecommunicati ons had undergone progressive liberalization 
since the conclusion of the Uruguay Round.  Colombia changed from a state monopoly to 
privatization and the elimination of entry barriers.   Colombia's autonomous liberalization had resulted 
in an increase in service providers and in the types of services available.  In financial services, access 
regulations were also liberal, entry barriers ha d been eliminated and there was very low State 
participation in the sector. 
86. Colombia participated actively in the WTO negotiations and was willing to improve its 
commitments in those sectors to reflect the more open environment in place.  Colombia would present 
its offers to correspond with the dynamic of the negotiating processing in all areas;  Colombia was 
conscious that the negotiations should make progress as a whole.   
87. In terms of information technology and rela ted services, Colombia participated in the 
plurilateral requests and offer system.  With resp ect to problems in the energy subsector, such 
problems were related to Colombia's infrastructure a nd the consolidation of unilateral liberalization in 
this area would promote capital investment. 
88. Colombia was aware that a funda mental concern for investors was the lack of legal stability.  
Colombia had established a mechanism of legal stability for contracts and was assuming commitments for the promotion and protection of inv estments in the regional and bilaterals contexts.  
The performance of legal stability contracts woul d be monitored in order to improve them.  
89. In the G-3 FTAs, the agreements signed with the United States and with Chile, as well as in 
other bilateral agreements for the protection of  investments, Colombia granted investors non- WT/TPR/M/172 
 Page 23 
 
 
  discriminatory, fair and equitable treatment, comp ensation in case of expropriation, and freedom to 
transfer resources to and from Colombia.  Claims on those issues could be taken to the relevant 
international tribunals. 
90. Colombia incorporated trade in its development and growth agenda.  Its domestic agenda 
included an obligation to work on those tasks.  Colombia acknowledged that the international 
community had responsibilities towards developing c ountries;  for Colombia that meant dealing with 
market access and strict ru les for agricultural trade. 
91. The discussant  stated that Colombia's intervention w as forward looking in its perspective and 
put things in their broader context.  He noted that many delegations had commented on Colombia's 
very impressive record of recovery from its financ ial crisis in the late 1990s.  This was all the more 
impressive given that this path to growth and stability  had been achieved in the midst of a very serious 
security problem.  The record of recent foreign dire ct investment (up nearly five-fold over the past 
three years) was clear evidence that there was reaso n for confidence that the situation would continue 
to improve.  There had been several constructive s uggestions for improving the investment climate in 
Colombia, including:  revision of the Legal Stability Contract Law;  improved rules for expropriation 
compensation;  formalization of the negative list ap proach for the entry of foreign investment;  and 
improved transport infrastructures between the major Pacific coast port (Buenaventura) and Bogota;  
– this is quite important in light of the emerging pattern of more trade with Asia.  
92. Colombia was to be congratulated for em bedding its trade policies within a broader 
development plan that addressed the issues of  democratic security, social equity, and good 
governance.  Trade liberalization alone could not co rrect all the economic and social problems of a 
developing country, or any country.  Trade liberalization had to be buttressed by sound 
complementary policies in the social, political, and s ecurity spheres.  Colombia recognized this and 
was taking steps to implement this strategy in its macroeconomic policies and overall approach to 
development.   
93. An important lesson for all, which had been me ntioned by many delegations, was Colombia's 
strong advocacy of ambitious multilateral liberalization,  even if it meant inevitable losses of some of 
its preferential access from its  FTAs and the autonomous preference programmes from which it 
benefited.  Colombia was presenting the case forcef ully that a genuine “development” outcome must 
be centered around creating significant new market opportunities compared to what was actually available in the market.  Clearly, the devel opment path described depended heavily on opening 
markets in the developed countries as well as in ma jor developing countries.  Colombia was not 
simply asking for concessions from others, but was prep ared to do its share in contributing to a strong 
market access package.  
94. On sectoral policies, various issues of concern ha d been raised, notably, the extent of the use 
of price bands and the system for allocating agricultu ral quotas.  In addition, several delegations were 
concerned about the significant gaps between bound a nd applied tariffs and between the current legal 
regime in most services sectors and the more limited set of commitments in GATS. WT/TPR/M/172 
Page 24  
 
 VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
95. Chairing this third Trade Policy Review of Colombia in replacement of Ambassador Uribe 
has proved to be a rewarding experience.  The revi ew has been exemplary in many ways, offering as 
it has a better understanding of the evolution of Co lombia's trade policies a nd practices over the last 
ten years.  We owe this to the hard work a nd commitment to the TPRM objectives of Vice-Minister 
Muñoz, Ambassador Uribe and the of the rest of  the Colombian delegation;  the thoughtful 
intervention by the discussant, Ambassador Allgeier;  and to the engagement of the many Members who took part in this exercise. 
96. Members welcomed the accelerati on of Colombia's economic growth in recent years.  This 
was attributed to sound macroeconomic policies and structural reforms undertaken in the aftermath of 
the economic downturn in 1998-99.  Members high lighted the contribution to growth made by 
expanding exports and investment, a nd encouraged Colombia to persevere with structural reform to 
achieve its ambitious economic growth  and poverty alleviation targets. 
97. Members commended Colombia's commitment to the multilateral trading system, including 
its active and constructive participation in the D oha Development Agenda.  Members also took note 
of Colombia's involvement in preferential agreem ents, and urged it to en sure coherence among its 
bilateral and regional initiatives, and between th ese initiatives and the WTO.  Members appreciated 
recent steps to enhance the security of investment, but  noted that further steps could still be taken to 
reduce the perceived risks of investing in Colombia .  In this context, Members also took note of 
Colombia's efforts to address its internal conflict. 
98. Members recognized the efforts made by Colo mbia to modernize and liberalize its trade 
regime.  They noted, however, that applied aver age tariff protection has increased slightly and 
considered that the predictability of the trade regime would be enhanced by narrowing the gap 
between bound and applied tariffs.  Colombia was inv ited to ensure that certain practices related to 
customs, import licensing, SPS and TBTs do not become unjustified trade barriers.   
99. Members welcomed Colombia's commitment to phasing out by end 2006 a number of 
programmes providing export subsidies, but some we re still concerned about the price-band system.  
Colombia offered information concerning consum ption taxes and the proposed elimination of 
differences in the application of the VAT to imports  and domestic products.  Colombia also explained 
various aspects of its competition policy and IPR protection regimes.  Members took note of the 
elimination of the agricultural absorption policy but  a number of them questioned the administration 
of tariff quotas. 
100. Members praised Colombia for undertaking refo rms to modernize its services sector, noting 
its relatively large size.  They al so pointed out that Colombia had reaped numerous benefits from past 
liberalization efforts, and encouraged it to conti nue along this path, including by expanding its GATS 
commitments.  Colombia indicated that its Doha revised services offer included additional 
commitments in many sectors that are currently unbound or only partially bound. 
101. In conclusion, the numerous interventions and qu estions during this Review are indicative of 
Colombia's active role in WTO and of Members inte rest in its policies.  Members clearly welcomed 
the steps taken by Colombia towards a more ope n and competitive economy, while also encouraging 
Colombia to consolidate and build on its achievements of recent years.  In this respect, Colombia's 
current efforts to strengthen and give greater pred ictability to its legal framework will prove key in 
boosting traders' and investors' confidence.  These efforts are indeed crucial, and Colombia could 
buttress them by anchoring its existing legal framewo rk through the widening and deepening of its 
multilateral commitments.  I was pleased to hear that Co lombia is ready to take steps in this direction, 
which would support both Colombia's development st rategy and our collective efforts in the Doha 
Development Agenda. 
__________