Colombia has a highly open, free-market system and is a signatory to many international free trade deals. It is a founding affiliate of the Pacific Alliance global trading union and has negotiated trade treaties with many of its major allies, such as the US and the Eu. The following are the current trade negotiations in effect in the country:
Columbia-Israel
Colombia and Israel established a comprehensive statement in Jerusalem on June 10, 2013, to finally terminate their free trading discussions. Colombia and Israel launched a Free Trade Agreement (FTA) in 2013. In 2020, the Colombia-Israel trade treaty came into effect.
The goals of this Accord, as stated more clearly in its terms, are to remove trade restrictions on products and offerings and to make it easier for items to travel between the states. The pact encourages competitiveness in business connections and significantly expands investment prospects, as well as engagement in sectors of joint interest to the participants. It establishes efficient mechanisms for implementing and enforcing this contract, as well as its shared management. Finally, the deal encourages international and regional interaction to grow and improve the agreement’s effects.
Columbia-Nicaragua
Colombia’s minister of trading, commerce, and tourist industry confirmed the signing of a trading relationship with South Korea, marking the country’s first with an Asian economy.
According to the agreement, 96 percent of industrial commodities will be permitted to arrive duty-free right away, 3 percent within five years, and practically all of the remainder 1% within ten years. Equipment, industrial and iron items, electronic devices, auto parts, and some medical drugs are all included in this category.
Over five years following its entry into effect, this pact will allow 56 percent of Colombia’s agricultural trade supply to access the South Korean marketplace with concessionary fares. Taxes on a further 25% of items will be removed during ten years and on the final 19% over more than ten years. Floral, livestock, raw and roasted coffee, chocolate, fruits, vegetable, cigarettes, sweets, jams and jellies, beverages, cookies, beauty items, and shoes are all examples of this.
Columbia-Costa Rica
In 2016, the Colombia-Costa Rica free trade agreement (FTA) went into effect. As a result, the duty-free status will be granted to 74% of industrial goods. The price of farming and manufacturing supplies, and also investment and consumables, is affected by this deal.
Tariff advantages will be available for 81 percent of items in Colombia’s farming production, with 60 percent of these goods having an instant duty-free entry. Nutrients, acrylics, some fabrics and manufacturing, drugs, automobiles, auto parts, and toys are among the Colombian industries that will gain from the accord. As per MinCIT data, international commerce between the two nations reached US$330 million in 2015, with Colombian sales to Costa Rica accounting for US$248 million.
Pacific Alliance
The Pacific Alliance is an intergovernmental movement formed by Chile, Colombia, Mexico, and Peru and was launched on April 28th, 2011. Its goal is to create a profound connectivity zone that is participative and democratic, allowing commodities, activities, funds, and people to move freely.
It was established to encourage the progress, stability, and efficiency of its members’ markets, emphasizing creating higher well-being, reducing income disparities, and promoting social inclusion.
Columbia-EU-Peru
In 2012, the EU, Colombia, and Peru concluded trade agreements. It has been temporarily implemented since 1 January 2017, based on the number of operations and events.
The economic deal’s biggest advantage is opening up opportunities for products, services, state purchasing, and financing. Through new restrictions on non-tariff obstacles, competitiveness, visibility, and copyrights, this treaty improves trade patterns. With an intergovernmental dispute resolution process and a mediation framework for non-tariff barriers, the agreements provide a more consistent and reliable setting for firms. The objectives of this deal include provisions for collaboration on efficiency, creativity, industrial modernization, trade liberalization, and technology transfer.
Columbia-US
The Trade Promotion Agreement (TPA) between the United States and Colombia went into effect on May 15, 2012. The TPA is a trade treaty that eliminates taxes and reduces restrictions on US products, particularly financial assistance. It also covers crucial topics such as customs processing and trade efficiency, technological trade hurdles, state procurement, financing, wireless communications, e-commerce, patents, labor, and climate protection.
It opens new doors for American employees, producers, farmers, and ranchers. When the agreement went into effect, over 80% of U.S. retail and corporate sales to Colombia were duty-free, with the remaining duties phased down over ten years.
Both sides also agreed to monitor their national ecological statutes properly, as well as to establish, preserve, and enact legislation, rules, and other steps to meet their duties under international environmental accords.
Columbia-Canada
As the influence of Canadian enterprises, especially in the extraction, oil drilling, and publishing industries, keeps growing, the two countries enjoy solid economic and economic ties. The two-way commercial exchange between Canada and Colombia reached $1.4 billion in 2010.
In 2010, Canadian commercial shipments to Colombia were $644 million, with grains, equipment, vegetables, paper products, and cars among the top exports. In 2010, Colombian imports grew totaled $717 million in Canada. Natural fuels and lubricants, cocoa, fruits, and sugar are all major imports. The overall sum of Canadian participation in Colombia was $824 million in 2010. The petroleum & energy, and mining industries are the primary beneficiaries of this funding, but the printing industry also has significant ties
