Canada will find high quality goods and services providers in Colombia

The Free Trade Agreement between Colombia and Canada will create countless opportunities for Canadian entrepreneurs to find in their Colombian counterparts the right suppliers of goods and services, with the quality level they require and at fair prices.

Additionally, the FTA will make it easy for Canadian buyers to purchase Colombian sugar, flowers, cocoa, processed rice, textiles and grains, which will be shipped to the country free of tariffs.

“Canada is the number ten world importer and we cannot miss the opportunity this free trade agreement is giving us,” said the President of PROCOLOMBIA, Maria Claudia Lacouture.

Total exports to Canada in 2010 reached US$532 million, where according to the Ministry of Trade, Industry and Tourism, traditional products represented the highest share with 83.1%.

Out of the nontraditional exports, 60.6% were agro-industry products; manufacturing with 30.9%; garments with 7.5% and services 1%.

Two-way benefits

The coming entry in force of the Free Trade Agreement with Colombia will also create an array of opportunities for almost 34 million people living in Canada.

Investments are not only expected in the oil and mining sectors, but also in other fields of productive activities like telecommunications, food products, BPO, software, IT services, automotive (assembly) and tourism, where Canada is a large capital supplier and Colombia provides great opportunities.

As part of its exports diversification process, PROCOLOMBIA has found that thanks to Canadians’ tendency to consume natural and organic products, they will be able to find Colombian suppliers of exotic fruits, fresh vegetables and ethnic products. It will also be a good opportunity to increase flower exports.

In the manufacturing sector, the country is capable of providing Canada with auto parts, brake pads and other products like upholstery and interior finish materials.

Colombian companies can offer the Canadian construction sector products like cement, bricks, gravel, floor remodeling and coating materials, walls, ceilings, pipes and ducts.

In the garments sector, Canadian stores will have the opportunity to offer Colombian products, known around the world for their quality and innovation.

Canadians will be able to fill their wardrobes with clothing for teenagers, men, underwear, bathing suits, leather articles, and sports clothing made with special treatments and technologies that will allow them to better perform their physical activity.

The services sector includes Colombian talent for digital animation development in console video games and mobile devices, education programs, training, medical simulations, business applications, e-learning and web marketing.

The country’s technological development, as well as the quality of its work force, will have a positive impact on Canadians interested in services like consulting, tele-medicine, call centers, online translation, data processing, information and other software related services, telecommunications and design.

Promotion Activities

In order for Colombian and Canadian entrepreneurs to make the most of the Free Trade Agreement, PROCOLOMBIA has planned to conduct a series of activities during the second half of 2011, among which are a Macro-Business Matchmaking Forum in Toronto, an exploration misión to Canada for the clothing sector, participation in a flower showroom in that country, and the Construc Canada Fair for construction materials.

Furthermore, a group of buyers will be visiting Proflora in Bogota, Colombia.

The Free Trade Agreement between the two countries will enter in force on August 15th this year. The Agreement also included certain obligations by the two countries, such as special regulations for some sensitive products in the agricultural-livestock sector, such as bovine meat and beans.

Moreover, all forms of exports subsidy and any possibility of reentry were eliminated, and strict rules were set forth to ensure appropriate protection of workers’ rights and the obligation to maintain high levels of environmental protection. It is worth mentioning that not all products will allow immediate access. Tariff dismantling terms were split into categories of up to five years, including uncut poultry meat, and ten years for products like beef and chicken, turkey and bacon chunks, glucose and malt extract.