FTA Between European Union and Colombia completes

The completion of the FTA will open Colombia up to an additional 503 million consumers across 27 countries. Research shows that the consumption of a 'Euro consumer' is close to USD 32,000 - four times that of Colombia, so a significant new buying power.

With this agreement, Colombia is predicted to not only witness a rise in the exports of goods and services, but to attract more European investment and serve as a platform for other countries in the region without agreement with the Europeans.

According to analysis of the National Planning Department (DNP), it is estimated that the agreement will see Colombia’s GDP increase by approximately 0.46%, while foreign sales will increase by 0.71% and imports by 1.73%.

In terms of trade, the European Union has traditionally been one of Colombia’s major trading partners; in 2011 it was ranked second as a destination for Colombian exports after the United States.  Last year, global trade in Colombia with the EU, according to the Dane, was USD 16,340 million, reflecting an increase of 54.4% over the previous year. Key exports included coals, briquettes, solid fuel, crude oil, coffee, banana and ferroalloys.

Moving forward with the FTA in place, PROCOLOMBIA forecasts that over 818 Colombian products will benefit from the agreement; research shows that Colombia’s agribusiness export opportunities include exotic fruits, fresh flowers, exotic tropical foliage, fruit, vegetables, coffee, processed sea products, value-added sauces, snacks and liquor such as rum dark. In terms of manufacturing; opportunities lies in natural cosmetics, pharmaceutical products and personal care. The free trade agreement will also provide better market access for service sectors including consulting, call centres, online translation, data processing, computer services, design services, and professional services.

Foreign Direct Investment (FDI) into Colombia is also set to benefit from the new agreement. FDI has already grown by a staggering 245% between 2010 and 2011, and the EU free trade agreement is forecast to promote the arrival of further foreign direct investment into the country. Leading investment opportunities for Europe are cited to include renewable energy, automotive-parts, oil services, BPO and Software & IT.

For more information on investment in Colombia visit: www.investincolombia.com.co