Colombian and European entrepreneurs will soon be given a tremendous opportunity for expansion. The free trade agreement between Colombia and the European Union, TLC as an acronym in Spanish, is currently in its ratification period after nine rounds of negotiations which were launched in 2007. The coming into effect of this free trade agreement will create an enormous amount of new links in the supply and demand chain.
The agreement will bring about the consolidation of Colombia’s status as one of the investment centers of Latin America. The European Union already is a significant investor in Colombia, European investment (excluding the oil sector) during January 2002 until September 2009 reached USD 6,350 million.
Once the agreement is ratified, the investment flow between the European Union and Colombia will be better protected given that the agreement provides for stability and transparency commitments. The agreement will also specifically allow for the identification of cooperation projects aimed at creating opportunities for trade and investment.
From Colombia’s standpoint, this agreement will provide the country with a preferential relationship with the European Union. The EU is a key player in the global economy since it is the main importer of goods (USD 2,301,000 million) and services (USD 618,000 million).
There has never been a better chance to do business between Colombia and the EU. The possibility of production and commercial alliances are almost limitless. It is time to take advantage of the spectacular tariff reduction and of the legal framework that the coming into effect of the agreement will provide to invest in Colombia or to introduce Colombian products and services to Europe.
Endnote: Information regarding dates and numbers was obtained from the brief to the European Parliament titled: “ EU Trade Agreements with Central America Colombia and Peru” which can be found at http://www.fta-eu-latinamerica.org/wp-content/uploads/2012/01/Brief-com-TLC-ING.pdf and from Colombia’s Ministerio de Relaciones Exteriores website http://www.cancilleria.gov.co/
Contact LOIGICA today to learn more about exporting your services or products to Colombia and to other South American countries.