Colombia’s growing economy will demand more energy and electricity solutions for powering rural parts of the country. According to a US Department of Commerce report, the Colombian government is promoting the use of renewable energy resources in order to reach isolated areas of Colombia. An example of this energy expansion is El Quimbo Hydroelectric Project Plant, located in the department of Huila, expected to start operating in 2014. The Council of Hemispheric Affairs, however, cautions that these large projects tend to displace rural populations and have harmful affects to the environment. The US Department of Commerce explains that the Colombian government nonetheless intends to develop several hydro-based power generation projects through 2018. Because of these projects and other power generation initiatives, the best prospects for American exports in the energy industry include:
- Power, distribution, and specialty transformers
- Industrial controls
- Steam, gas and hydraulic turbines
The 2012 US-Colombia Free trade agreement (CFTA) eliminates 80% of duties on US exports for both industrial products and consumer goods. Similarly, 65% of US equipment exports are eligible for duty-free treatment, according the US Department of Commerce report.
Contact LOIGICA today to speak to an international law advisor on how to export equipment to Colombia and other parts of South America.