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Bogota, May 13th (Pxp). According to the Ministry of Trade, Industry and Tourism, based on data by the National Administrative Department of Statistics (DANE), a total of 1,689 domestic companies have explored the American market for the first time since Colombia&rsquo s Free Trade Agreement with the USA came into force two years ago. Florida is the destination with most shipments, particularly of Colombian products including live plants, tea, aluminum, apparel, and accessories.
" There are more than a thousand entrepreneurs taking advantage of the aid offered by the National Government through PROCOLOMBIA small and medium-sized companies in particular have helped us learn important lessons about leveraging the available opportunities from the FTA with the USA&rdquo , stated the President of PROCOLOMBIA, Maria Claudia Lacouture, pointing out that a total of 362 new Colombian products have reached the US as a result of the trade agreement.
The following are success stories from 10 Colombian entrepreneurs leveraging the FTA
A company from Barranquilla is shipping Doors to California
According to Ruben Correa, General Manager of Mademeco, Colombian entrepreneurs had to reduce their price margin to be able to compete with Chinese exporters. " However, now this market accounts for 10% of the total sales thanks to the FTA tax benefits&rdquo , he said.
As a result, the doors manufactured by this company are currently in demand in residential areas in California, USA. " We contacted our buyer, who is also a supplier, thanks to one of PROCOLOMBIA&rsquo s trade missions, where they came to visit our manufacturing plant&rdquo , Correa explained.
Guava Sweets and Snacks in New York and Miami
Fruticol Industrial, a company from Valle del Cauca, seized the Latino demographic in the US, as their products reached the country at lower prices for the end consumer thanks to the Free Trade Agreement. " There are no customs tariffs, which puts us ahead of competitors. Ecuadorians, for example, must pay a 15% tax, which means their products are much more expensive&rdquo , explained Javier Saenz Leguizamon, Business Manager of the company.
Fruticol&rsquo s Industrial production increased by up to 60% due to the increased demand. This allowed the company to double the staff at their manufacturing plant. Currently, 65 out of 100 workers in the company are mothers who are the head of household originally from the municipality of Candelaria, in Valle del Cauca.
Fresh Tilapia For Sale in Atlanta, Miami, and New York
After PROCOLOMBIA&rsquo s 50th Business Matchmaking Forum, Coolfish Company entered a deal with American buyers for the first time. A total of ten tariff-exempt tons were exported last March.
" There' s no doubt the trade agreement opens up new possibilities. Besides, Colombia&rsquo s weather sets us apart from foreign competitors&rdquo , claimed Jorge Muñoz, General Manager of the company.
California and Florida Buyers Purchase Leather Products Made In Antioquia
When the Free Trade Agreement with the United States came into force two years ago, Medellin-based Company Articur was able to export their products abroad. This company now sells 50 thousand units every month, including items like sandals, belts and purses. Their top clients in the USA include brands like Polo and Calvin Klein, for whom the Antioquian Company assembles products.
" Diversification is key. At first, we used to manufacture only belts, but with the support of PROCOLOMBIA, we realized that our clients could also be interested in other products, like purses and sandals,&rdquo stated Alejandro Mesa, Business Manager of the company.
Hammocks, Towels and Uniforms from Atlantico Area Available in South Carolina
After almost 20 years of hiatus from the American market, Consorcio Abuchaibe spotted an opportunity to reclaim its U.S. market share thanks to the signing of the FTA, exporting uniforms, towels and hammocks to South Carolina.
" The trade agreement called the attention of American buyers and put Colombia in the radar. Definitively they prefer to buy from us because we offer major tax benefits compared to our competitors&rdquo , assured Gabriel Abuchaibe, Commercial Vice-President of the company.
The challenge, according to the officer, is to understand what clients are looking for and to anticipate trends.
Fajas Lady' s Profile
Just one year after the FTA came into force, Fajas Lady executives noted a change in their exports. From selling $8,889 USD in 2011 to $46,868 USD the following year. That is, an increase in exports of almost 81%.
" Thanks to the trade agreement, Colombian products have become more popular. Even international buyers notice the advantages streaming from the FTA and prefer our products&rdquo , stated Norbey Mora, Business Manager of the company.
Our current goal is to conquer the aesthetic and post-surgery girdle market in Illinois and the US West Coast..
Caramel Filling Made In Manizales Charms Latin American Residents in the USA
According to Luis Andras Rendon, Business Manager of Normandy S.A, there is little doubt that the main advantage their exports have in the USA are the low prices they offer compared to their competitors.
" The FTA was the little nudge we needed to try exporting our products to that market. American clients frequently contacted us to learn how to buy caramel filling from Normandy&rdquo , declared Rendon.
According to the entrepreneur, in order to conduct exports you must have courage and break the preconceived ideas about foreign trade.
The American Power Sector: The Main Client for Gamma
The Gamma Company has conquered the American market through porcelain and silicone insulators for power transmission and distribution grids. " The main advantage from the FTA is fewer procedures required to participate in the electrical power sector. Second, but not less important, is the positive perception from our partners, clients and end users. Now, they consider Colombia as a true long-term commercial partner,&rdquo stated Mauricio Yepes, General Manager of the company.
Also, Yepes explains that they are able to compete directly with important industries from countries like Mexico, Brazil, or China, as Colombian products pay no customs tariffs. " It' s not only about quality we must make a difference through additional services like client proximity, timely deliveries, and great designs. Therefore, we currently participate with our own brand in the USA,&rdquo added the officer.
Auto Parts Exported from Mosquera, Cundinamarca.
Although Fundicom has dealt with American clients since four years ago, it was only after the FTA was signed that their exports really boosted up. " Our sales to this destination exceeded even those we had in Colombia to General Motors, our former top client&rdquo , assured Edwin Gonzalez Arias, General Director of the company.
According to the officer, this market has niches that demand very high volumes that they were not able to handle before. So the company keeps learning to identify what the clients want. " We know we must keep close contact with all buyers and prepare quotes instantly&rdquo , said Gonzalez.
Rainbow Trout from Boyaca in Georgia, Florida, and New York Restaurants.
In 2011, Trout Co started its U.S. exporting venture after their participation at the Boston Seafood trade show. Since then, their representatives have learned about the benefits of the trade agreement. " Both buyers and sellers have profited from this. We have obtained different tools including employee protection or farming measurement systems. Customs tariffs exemption has streamlined the commercialization process,&rdquo stated Oscar Murillo Garcia, Manager of the company.
Consequently, in 2012 the company devoted 42% of their production only to meet the demand in the U.S. According to Murillo, this is a strategic market due to its proximity and the benefits it provides when doing business. Now, the rainbow trout that is exported by Trout Co is available in important restaurants all the way from Georgia, Florida, and New York.
