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This route leads to a market of 34 million consumers with high purchasing power, whose incomes per capita is nearly US$ 40,000, almost five times that of our country.
It is the Free Trade Agreement (FTA) signed between Colombia and Canada, which entered into force yesterday and opened a multitude of opportunities, so that our two countries may strengthen their trade relations and of friendship, which goes way back.
This is the second of such treaties that Colombia has in force with a developed country, the first being with Switzerland, and each constitutes a good precedent for the ratification and entry of other trade agreements that Colombia has already signed or is currently negotiating.
Thanks to this Treaty, Colombian products and services will enter, immediately, the Canadian market free of tariffs. In addition, Canadian investment will also flow into our country, given the framework of greater stability and better guarantees, which provides clear rules for both nations.
As for external sales, the Colombian exporter now has an open door to the fifth largest importer of goods, worldwide. Products such as sugar, processed rice, vegetal oils and fats, flowers, tobacco, textiles, apparel, confectionery, ethanol, liquors, and practically one hundred percent of our industrial production will now reach Canadian consumers with preferential conditions.
As for services, Canada granted Colombia one of the best levels of accesses that it has ever given to one of its trading partners. Such conditions are ideal for businesses that work in the area of call centers, online translation, data processing, informatics and other services related to software, telecommunications, and design.
Additionally, we are expanding the range of our exportable products. Through the Productive Transformation Program (PTP), the axis of the National Government&rsquo s industrial policy, we are working hand in hand with the private sector to diversify our supply. So, as we gain greater access to markets, we will have more products and services to meet their demands.
In terms of the FTA with Canada, several of the sectors that are part of the PTP will be servicing the Canadian market. These include the sectors of palm, vegetable oils and fats, chocolate, confectionery and its raw materials, textiles, garments, fashion and design, auto parts, business process outsourcing (BPO& O), software and information technology, and telecommunications.
But remember, trade goes both ways, so by virtue of the FTA, Canadian products will also be arriving to Colombia. These will supply the necessities of our industrial sector. They include such items as machinery and hydraulic equipment, all-terrain vehicles, wheat, barley and other grains, which are the raw material for many of our agro-industries. All of this will be arriving at competitive prices, which, in the end, will benefit Colombian consumers.
It is worth mentioning that wheat is a primary input for many Colombian food industries. In fact, in recent years, Canada has gained market share, compared to the United State, which has been our traditional supplier. In 2010, it was just behind the United States, in terms of wheat sales to Colombia, at a difference of only 18 million.
And, just as bilateral trade is important so, too, is the arrival of Canadian investment. To this end, the FTA, as mentioned before, will provide businesses with clear rules, guarantees, and stable ground, in general.
During the past ten years, Canada has invested over a billion dollars in Colombia. We expect this figure to increases with the entry into force of the FTA, and that Canadian capital will favor our strategic sectors of high added value, particularly the telecommunications, financial services, and mining sectors.
Now, it is up to Colombian and Canadian businesses, exporters and investors alike, to take advantage of this new route towards healthy bilateral relations. As for the Government, we will tend the necessary bridges, so that Colombian companies may have their best clients in Canada. Let us make this landmark, in our nation&rsquo s economic history, a landmark to a new era in our foreign trade, as well.
