THE MINISTRY OF TRADE (MINCOMERCIO) ANNOUNCES COP$7.5 BILLION TO PROMOTE THE EXPLOITATION OF THE FREE TRADE AGREEMENTS WITH SWITZERLAND AND CANADA

Promotion plan details were revealed by Minister Diaz-Granados during the V National Encounter of Regional Competitiveness Commissions

An additional allocation for promotion in the amount of $7.5 billion for the regions to further harness the Free Trade Agreements with Switzerland and Canada was announced today by the Minister of Trade, Industry and Tourism, Sergio Diaz-Granados.

During the inauguration ceremony of the V National Encounter of Regional Competitiveness Commissions, the Minister emphasized on the institutional work currently taking place with Bancoldex and PROCOLOMBIA for the regions to be the major beneficiaries from these two Agreements.

The resources are destined to speeding up the agenda of specific activities in order for exporters to enjoy the tariff benefits during the immediate access phase accomplished for our national products and services.

According to the Minister, having started the FTA with Switzerland a few weeks ago, and doing the same with the Canadian FTA, which will enter in force on August 15th, is a milestone in the country's trade history, as it is the first time treaties like these are closed with two developed economies.

Aforementioned resources will be used for promotional activities like bringing group-missions of entrepreneurs from both countries, and taking our exporters to those destinations. According to the Minister, when the information is cross-checked to assess Swiss and Canadian importers' purchases, there are coincidences present in the supply and demand streams.

For instance, he said, in the past two years Canada imported US$1.8 billion worth of fruits and vegetables, and there are regional competitiveness plans underway targeting the growth of those two line items.

Hence, Diaz-Granados announce a strategy to be put in place this year with PROCOLOMBIA, where the competitiveness commissions and chamber of commerce contributions from each region will be a determining factor to decide which export promotion activities can start, in order to achieve the highest benefits from these FTA's.

According to the senior executive, there is a regional offering already prepared to travel to those destinations, but there is also another that needs more work right now. Therefore, the Minister suggested to the commissions' spokespeople, as well to the chamber of commerce representatives, to work with PROCOLOMBIA and the Ministry to assess the possibilities of the regional offering.

In consequence, there will be exploration mission-trips and experts will be invited to focus on studying what each region must do to fulfill these requirements.

Furthermore, Bancoldex will have a development and innovation unit available to work on specific strategies such as entrepreneurship. The plan for this is to support projects that foster the creation of high-technological impact projects.

This development unit will also assume the management of the Technological Modernization and Development Fund for Micro, Small and Medium Sized Enterprises (Fomipyme), for which co-funding resources were allocated this year in the amount of COP$30 billion.

On the financial field, Minister Diaz-Granados emphasized that the Government will continue to foster the creation of private capital funds, vis-a-vis the goal set by National Government to incentivize corporate development, increase formalization and create over 2 million jobs during the next four year term. 

(Information from the Ministry of Trade, Industry and Tourism)