EFTA-Colombia

Trade in Agricultural Products -HANDOUT-

Tim Kränzlein Tim.Kraenzlein@blw.admin.ch

Deputy Head, Trade Relations Unit, Federal Office for Agriculture, Switzerland

Structure of the handout

•Agriculture in EFTA •Markets for agricultural products in EFTA •Market accessintoEFTA states •Whatelseyouneedtoknow

Agriculture in the EFTA States

•1 % of GDP and 4 % of employment •Difficult climatic and geographical conditions •Key employer in rural areas •Small scale structure agriculture •High production costs •High SPS standards

Main agricultural production

•Iceland –Beef and sheep, especially tender highland lamb of high quality –Icelandic horses •Norway –Meat and dairy –Grain and some vegetables •Switzerland –Meat, dairy, fruit and wine –Famous cheese

Agricultural policy in the EFTA States

•Not a common agricultural policy,

but similar

•Active policy to maintain a certain level of agricultural production High tariffs on goods from sensitive sectors; meat and dairy •Not self-sufficient, large netimporters of agricultural products (Import ~50 % of consumption)

EFTA markets for AG products (1)

•Major net-importers of agricultural goods •Generally low level of self sufficiency (CH: ~60%) •Main trading partner is the European Union (~70%) •High purchasing power •Concentration on the level of retailers •High share of foreigners (e.g. Switzerland: 25%) high diversity of consumption patterns

EFTA markets for AG products (2)

•Imports subject to tariffs / quotas / seasonality •Main responsibility for administrative aspects: importer •Major product groups that are imported (example: by Switzerland) from Colombia:

HS

09 (Coffee), HS 08 (Bananas), HS 08 (Tropical and other fruits, fresh or dried), HS 17 (Sugar), HS 24 (Tobacco) / Total imports: ~110 Mio. €(2016)

Framework for trade in agricultural goods between EFTA and Colombia

Structure of the FTA

EFTA-Colombia Free Trade Area Colombia–Switzerland – Norway –Iceland – Liechtenstein

Free Trade Agreement (“Main Agreement”) Three bilateral complementary agriculture agreements

Processed agricultural products (Annex III)

•Covers products of the food industry, such as: bread, soups, chocolate, preserved fruits and vegetables, prefabricated food •No industrial protection. Duty based on content of certain raw materials (mainly dairy and

cereals)

•Treatment no less favorable than that accorded to the European Union for the same products

Basic agricultural products

•Only HS 1-24 products (some exceptions) •Each agreement contains concession lists for one EFTA State and for Colombia •Concessions either with fixed reduced duty or reduction upon MFN applied rate (from Swiss side for example) •Rules of Origin

Concessions to Colombia: live animals, cheese, honey, fruits and vegetables (e.g.

bananas, tropical fruits), fruit & vegetable preparations (e.g. tropical fruits preserved with sugar), fruit juices (e.g. orange juice), selected meat products, selected oils and fats

Examples of products (CH)

The Colombia-EFTA Free Trade Agreement and the Bilateral Agricultural Agreements: http://efta.int/ Icelandic Customs tariff: www.tollur.is Norwegian Customs tariff:www.toll.no Swiss Customs tariff: www.tares.ch Useful information (1)

Specific information for trade in AG products (CH): •Federal Office for Agriculture FOAG www.blw.admin.ch (Import regulations, Import permits, market information) •Federal Food Safety and Veterinary Office FSVO www.blv.admin.ch (Sanitary and phytosanitary regulations, food labelling) •State Secretariat for Economic Affairs SECO www.seco.admin.ch (General information on trade agreements, legal texts) Useful information (2)

Thank you!

1

DoingBusiness with Switzerland andPrincipalityof Liechtenstein

EFTA Seminar Colombia December 4, 2017 Markus Stern

EFTA

2

Colombia Import countries 2016

Source: Trade Map, ITC

21

3

Total: Mil. $ 479

Total: Mil. $ 376

Trade Colombia with Switzerland and Liechtenstein 2016

4

Principality of Liechtenstein at a glance 2016 Surface area: 160 km 2

Capital: Vaduz Population: about 37’666 Languages: German Life expectancy: Male 79 years Female 84 years Export* (2014):3’040 million $ Imports* (2014):2’040 million $ * without Switzerland Import products: agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, motor vehicles

5

Switzerland at a glance 2016

Surface area: 41’285 km

2

Dimensions: North-South 220 km East-West 348 km Capital: Berne Population: about 8.4 millions

Languages:

German 64% French 19% Italian 8% Rhaeto-Romansch 1% others 8% Export: $ 298 billion (210 without gold etc.)

Import: $ 266 billion (174 without gold etc.)

GDP: $ 659 billion GDP per capita:$ 78’700 Currency: 1.00 CHF = $ 1.00 = 3.04 COP

6

•Import duties, levies (anti-dumping), taxes, VAT, import licensing, quota, phytosanitary certificates, bans •Standardisation

- technical specifications - performance of goods and services CE Marking

•Quality management

ISO 9000 series, ISO 22000 (food industry) •Health and safety(no risk for the safety and health of persons) HACCP, Good Agricultural Practice (GAP), Good Manufacturing Practice (GMP) GlobalGap, IFS, BRC, organic certificate

•Environment, waste management

ISO 14001, Ecolabeling, FSC, MSC

•Social accountability

SA 8000, Fair trade (IFAT, IFOAM, Max Havelaar)

Import regulations and market requirements

7

Import dutieswww.tares.ch

8

The contextual continuum of differing cultures

9

Comparing low-and high-context cultures

Communication

Explicit, directImplicit, indirect CharacteristicLow-context High-context

Business/ work habits

Deal oriented, rewards based on achievement Relationship oriented, rewards based on seniority Ethical trading Make sure that trade does not contravene human- and labour rights, development, social responsibility and environment

10

Ecology

Trends in Switzerlandand Liechtenstein

Customer requirements

Social Aspects

11

Neglecting market trends

no clients

environmental & social accountability

import regulations

lack of prices

negative Image insufficient quality wrong products

lack of market information

12

The vital first step to export success

•Trade and Market information Switzerland/Liechtenstein •Country-specific rules and regulations in the exportimport and investment fields •New business opportunities •Norms and standards, quality requirements, certificates, appropriate design •Export marketing planning: a must

13

•Is my company ready to export?

•Where can I obtain expert information on foreign markets?

•Where and how can I find new sales outlets?

•How do I locate the right business partner in my target market?

•Who can help me launch products and services in Switzerland and Lichtenstein?

•Where can I find new suppliers?

You, as a potential exporter

14

Fresh fruit: import 2016

tons 2016 values m $ tons 2015 value m $

21 0121713 32613

11 055 6 6 359 4

9 957116 967 9

50 8569652 64493

8 691209 41922

3 288143 060 9

20 8003422 85434

10 5021910 89118

7 575 9 6 42010

34 49616232 801134

14 9055314 42245

23221821

2 987342 81728

7811111

4 671463 68435

110120

11 6122611 57324

232 035365229 746345

20 0652320 07920

13 8214511 37428

89 84810287 24199

2 752152 42013

1 480 5 1 693 7

14 7124013 46737

2 091 5 2 235 5

33 7717234 01273

26 6151627 40718

26 8804229 81845

145 845193143 909173

44 2556344 71462

70 4657269 21867

7 092 8 7 156 8

24 0335022 82136

Oranges Grapefruit Lemons

Papaya fruit Grapes Watermelons other melons

Citrus fruit

Mandarins

Pineapple Avocados Bananas Dates Figs Guavas, Mangos, Mangosteen

Raspberries Black currents Cowberries, blueberries Gooseberries Kiwis / Kiwis

Exotic fruit

Nectarines Peaches Plums

Berries fresh

Strawberries Blackberries

Pome fresh

Apples Pears

Stone fruit fresh

Abricots Cherries

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ExoticfruitfromColombia: import2016

quantity kg value $

CoconutTotal CH 744'725 1'663'638 Colombia 7'417 4'685 tropical nutsTotal CH9'179 138'088 Colombia0 0 DatesTotal CH 2'759'420 16'620'837 Colombia8806'141 FigsTotal CH 1'479'642 5'885'469 Colombia 1'202 8'117 PineappleTotal CH 20'090'015 25'360'314 Colombia 204'245 241'862 AvocadoTotal CH 13'825'626 45'784'826 Colombia 254'394 941'888 Guava, MangoTotal CH 14'712'108 42'944'339 Colombia 6'962 20'564 OrangesTotal CH 70'484'330 72'830'739 Colombia0 0 MandarinTotal CH 44'281'505 63'061'518 Colombia0 0 Lemon, LimeTotal CH 24'044'857 50'903'564 Colombia 21'326 45'120 KiwiTotal CH 11'611'072 24'875'287 Colombia0 0

Total CH 204'042'479 350'068'619 Colombia 496'426 1'268'377

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Swiss markettextile, fashion

Total market: 9 bn $ Luxury labels (high price) Market penetration/no names (low price)

Sales outlets

Fashion boutiques: > brands, > 2’200 stores Department stores: 113 Wholesalers/large retailers/discounters: > 1’000

Import

6203

-Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts: $ 727 m 6204-Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts: $ 816 m 6112.31-Men's or boys' swimwear of synthetic fibres, knitted or crocheted: $ 3,2 m 6112.41-Women's or girls' swimwear of synthetic fibres, knitted, crocheted: $ 80,2 m

17

Chocolate

Swiss initiative for sustainable cocoa production

Switzerland: runner-upworldchampion, 11 kg per capita

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Chocolate

18 chocolate manufacturers Total sales volume: 181’414 tons; value: 1.747 bn $

Import fortotal consumption: 38.7%

Domestic sales64’383 t35% 904m $ Export117’031 t65%843 m$ Total181414 t100%1.747 bn$

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Cocoa

Chocolate and other food preparations containing cocoa Value imported in 2016 (USD thousand)

Cocoa butter, fat and oil177,671 Cocoa beans, whole or broken, raw or roasted127,790 Cocoa paste, whether or not defatted43,267 Cocoa powder, not containing added sugar or other sweetening matter 14,173

Cocoa shells, husks, skins and other cocoa waste132

Switzerland

Colombia's exports to Switzerland

Switzerland's imports from world Value in 2016, USD

thousand Value in 2016, USD thousand

Chocolate and other food preparations containing cocoa

15 255,542

Cocoa beans, whole or broken, raw or roasted 0 127,790

Cocoa shells, husks, skins and other cocoa waste 0 132

Cocoa paste, whether or not defatted 0 43,267

Cocoa butter, fat and oil 0 177,671

Cocoa powder, not containing added sugar or other sweetening matter

0

20

Biscuits

24 biscuits manufacterer Total production / turnover: 43’919 t, 448 m $ Per capita consumption: 6.51 kg Market share Swiss production: 58.4% Imported biscuits: 41.6%

Domestic sales31’811 t35%346.8m $ Export12’109 t65%101.2 m $ Total43’919 t100%448 m $

imported value 2016, USD thousand

Total90,963 Sweet biscuits58,933 Waffles and wafers32,030

21

Cosmetics

CosmeticMarket2016

22

Cosmetics

Marketshares2016

23

Wine from Colombia

Cauce Tal, Sierra Nevada de Santa Maria and Ocana

Exporterst o Switzerland

Value imported in 2016 (USD thousand)

Share in Switzerland's imports (%)

Quantity imported in 2016

Italy 396,158 36.8 73,615 France 332,794 30.9 38,611 Spain 143,511 13.3 31,590 Germany 44,845 4.2 7,058 Portugal 36,141 3.4 10,602 United States of America 28,932 2.7 4,256

Austria 19,924 1.9 2,557 Argentina 16,859 1.6 3,247 Chile 14,457 1.3 3,381 Australia 9,069 0.8 2,378 South Africa 8,849 0.8 5,115

Colombia

24

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

0-2

CHF 2-3

CHF 3-4

CHF 4-5

CHF 5-6

CHF 6-7

CHF 7-8

CHF 8-9

CHF 9-10

CHF 10-11

CHF 11-12

CHF 12-13

CHF 13-14

CHF 14-15

CHF 15-20

CHF 20-25

CHF 25-30

CHF >30

CHF

Swiss red

Foreign red

Shares per price level red wines in bottles in the supermarkets in 2016

Which wines sell best in Switzerland?

First of all, it is a question of price. The

average retail price in Switzerland is CHF 7.80 for a 7-decilitre bottle.That

is one of the highest average retail prices in the world. The figure in Germany is EUR 2, including value-added tax. People usually prefer the light, smooth wines. For example, an elegant Rioja. What are not appreciated by the vast majority are wines with acidic and tannic overtones.

1999CHF 10.80

2016 CHF 7.80

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Value Creation

•Agricultural products and processed Food, Fruit & vegetable,

herbs

•Home, interior design, furniture •Fashion, clothes •Technical products, electronics, software •Leather goods, accessories •Jewellery, handicrafts •Eco-Tourism

26

Information aboutColombia

Todaythefirstinternational business contactforan interestedbuyeris:

www.?

co

Made in Colombia Produceof Colombia

27

Organicagriculturalproduction

Switzerland organic production: 140’000 ha Sales: > 2.3 bn $ Liechtenstein organic production: 1’200 ha Colombia Organic production: 33’000 ha Worldwide: Organic production: 50’900’000 ha Market: > 90 bn $ Switzerland consumption per capita: > 300 $ (world champion)

28

Organic production

Advantages

Market opener / competitive product / price premium Steady buyer, co-operation Natural production sites Positive image Market trends in Europe Opportunities opportunities for smaller producers in rural areas favours “natural” production methods can often be applied in developing countries on current production, but needs certification

29

Consumer Behaviour

Reasons, why some consumers prefer organic products: 75% health-consciousness 60% environmental reasons 25% better taste

How many consumers buy organic products?

20% of the consumers buy regularly organic products 50% of the consumers buy organic products once in a while 30% of the consumers never buy organic products

30

What is Marketing?

Marketing can be:

Communication (quality, USP, region, certificates) •Mailings, advertisement, publicity, trade fairs •Reliability, confidence, trust •Pricing, discounts, special offers, packaging, labels •shopping center, house delivery, e-commerce •a smile in the direct contact with your client / your customer Marketing is everything what helps to increase sales.

31

Traditional Marketing Mix P P P P ProductPricePromotion Place

Product Price Promotion Place

Contacting customers (direct contact, selling/ buying mission, trade fairs) Personal sales Sales promotion Advertising Direct marketing Public relations E-trade etc.

Products and

Product design (quality, design elements, packaging, brand) Extent of range Depth of range etc.

Pricing method Style of pricing Discounts and rebates Trade margins Price relations within range etc.

Distribution channels (specialised retailers, wholesalers) Style of supply Availability etc.

32

Image Building

A first impression cannot be repeated, cannot be made a second time

33

Pricing

•Confidence •Trust •Communication •Reliability •Vision

Price

34

Price: Top-Down calculation

Consumer Price: VAT: Market price minus VAT:

1‘080

80 + 8.0%

1‘000

Margin retailer: Price to retailer: Margin Wholesaler: Price to wholesaler: Margin Importer:

250 = 25%

750

90 + 12%

660

33 + 5%

Landed-cost price: Import duties: Other costs (storage, banking): CIF (port of destination):

627

188 + 30%

15

424

Transportation costs: Insurance costs: FOB (port of shipment):

120

4

300

Transportation costs factory to port: Export price Ex Works (EXW): Factory cost price: Export profit (per unit)

5

295

255

40

35

Trade and Sales Structure

Markets

Retail and wholesale trade, general stores Discounters, cash-and-carry Catering trade, canteens, fast food Industry, Manufacturer, Processors Weekly markets and sales directly from the farm

36

MIGROS Switzerland:

over 80’000 employees 950’000 customers each day 1‘820’000 m

2

total salesarea 667 M stores in Switzerland and 6 stores in France and Germany 218 specialist retail stores (Do it+Garden, SportXX, Melectronic) Total 1’978 stores, subsidiaries (Denner, Globus, Interio, Digitec/Galaxus, Ex Libris, Schild, Office World etc.)

14 factories for food and nonfood products Migroshas its own banks, travel agencies, gas stations, etc.

Retail turnover:CHF 21.9 bn$ Group turnover:CHF 27.7 bn$ MIGROS doesnot sellalcohol

Swiss retailoutlets2016

37

COOP Switzerland:

Retail stores876 Department stores31 Non-Food stores708 (Bau+Hobby, Interdiscount, TOP/TIP Lumimarkt, Christ Uhren & Schmuck, Import Parfumerie, Dipl. Ing. Fust, The Body Shop) 1’853’000 m

2

salesarea Total: 1’978 stores Retail turnover: CHF 15.8 bn$ Group turnover: CHF 28.3 bn$

38

Food discounters:

AldiSuisse185 shops/ CHF 1.5 bln.

Denner (Migros) 809 shops/ CHF 3.1 bln.

Lidl Suisse109 shops/ CHF 600 mil.

Total: 1’103 shops Turnover:$ 6 bn

39

Independent retailers and food chain stores: Landi / VOLG, Spar, TopCC, Maxi, PAM/Proxi, GroupeMagro, Otto’s, Tschibo, Total: 2’367 shops Turnover:$ 4.5 bn Department stores: COOP City, Globus, Jelmoli, Loeb, Manor Total:113 stores Turnover:$ 4.6 bn Drugstores, pharmacies, perfumeries Total:2’706 stores

40

Swiss retailoutletsNon-Food 2016

BranchFirms Shops Turnover

Clothes 952’633$ 3.2 bn Footwear22 1’003 $ 2 bn Sport articles24 1’104 $ 1.5 bn Furniture, hometextile31 708 $ 4.9 bn Office world8 89 $ 500m Toys, books, music19 328 $ 898 m Multimedia, household, software15 538 $ 4.1 bn opticianshops9 271 $ 557 m Cats& dogs 5168 $ 520 m Do-it-yourself6 183 $ 1.9 bn Total sales$ 20.1 bn

41

Numerical distribution

53’000 retailoutlets Retail tradeturnover$ 96.8 bn of whichfood$ 48.8 bn of whichnon-food $ 48.0 bn

Swiss retailoutlets2016

E-commerce / online

B2C (abroad & Switzerland:$ 7’050 bn C2C $ 0.750 bn Total: $ 7.800 bn + Pick-up abroad $ 0.250 bn

42

Information for importers (Brochures, newsletter, general promotion materials, Internet/Websites) –Contacts Direct contact Selling mission Buying mission Contact forums Trade fairs –Follow-up Interested buyer/importer Interested seller/exporter Ministry of Foreign Trade and Economic Relations Industrial Associations www.sippo.ch/ SIPPO Colombia (rafael.suarez@sippo.com.co) Proexport Colombia Cámara de Comercio Colombo - Suiza Colombian Embassy in Bern/Switzerland Match-makingexporter -importer

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VSIG / Swiss Trade www.vsig.ch VSIG/Swiss Trade

is

the branch organisation of Swiss trade, of the Swiss Importer’s Associations.

VSIG/Swiss Trade

has

approximately 3'500 members in over 35 different branches.

44

Export Marketing Planning: a Must

Market assessment and selection: Switzerland & Lichtenstein Company assessment SWOT -internal analyses: Strenghts, Weaknesses -external analyses: Opportunities, Threats Strategic action -Business plan -Marketing plan Terms of payment Terms of delivery Price strategy

45

© Osec Business Network Switzerland 2006

“When in Rome, do as the Romans do“ If you wish to sell to Switzerland and Lichtenstein, act like an EFTA member

Ecological production

Social responsibility

Market Success

Sustainability Marketing

Customer needs & wants

Market trends

Marketing Mix PPPP reliability vision

Boosting your Exports

46

Swiss companylandscape

47

How do we spend our money (2016)

3’640’000 households

0 510 15 20 25 30

Tobacco Footwear Education Jewellery, watches Clubs Holidays Personel hygiene Beverages Clothing Gifts, donations News, communication Healthiness Furnishing Restaurants, bars Entertainment, culture Foodstuffs Transportation Housing & energy

48

HowSwitzerlandgainsprofitout of international trade

1.

Switzerland imports: 58% highvalue and 42% lowvalue products.

3.

Switzerland exports: 72% highvalue and only 28% low-value products.

2.

The value related productivity of the highquality products is proportionally better by 2:1

42

58

28

72

49

Have you any questions

Thank you

Doing business with Iceland

Thorleifur Thor Jonsson Senior Manager Trade Delegations

Doing Business with Iceland

1.Where is Iceland ? 2.Basic facts 3.How to export to Iceland 4.Main industries 5.General information

Iceland - midway between Europe and America

Reykjavík

Brussels

New York

2100 km

4200 km

Iceland -Basic Facts

Land size:

103.000 km

2

Exclusiveeconomic zone:

200 nautical miles

Climate, Reykjavík:

January -0.4°C July 11.2°C

GDP Per Capita:

$ 51.785

(2016)

Life expectancy:

Female83.7 years

M

ale80.7 years

Population:

339,000people 3,1 inhabitants per

km

2

Capital

Reykjavík

Language

Icelandic

Currency

The

Króna

GDP per capita

US $ 2016

59.267

57.325

51.785

51.285

49.810

49.076

48.989

43.363

42.958

42.651

41.534

41.490

39.632

0 10.000 20.000 30.000 40.000 50.000 60.000 70.000

Norway United States Iceland Netherlands Denmark Sweden Germany Finland EU15

United Kingdom Japan France EU28

Modern Society – Advanced Infrastructure

Iceland is an advanced country with a tech-savvy population of 329,000 people. It is one of the world’s most affluent countries with a GDP per Capita at $52,426. It has been ranked as one of the best countries to live in, the world’s most peaceful country, and as having the best basic infrastructure and most internet users per capita.

1

1

1

1

1

1

2

2

2

3

5

6

8

10

12

12

13

13

16

19

20

20

23

29

163

145

139

139

139

61

180

175

165

155

61

139

140

133

142

140

167

141

188

189

178

130

61

140

Global Peace Index (IEP) Gender Equality (WEForum) Technological Absorption of Firms (WEForum) Internet Users (WEForum) Internet Access in Schools (WEForum) Basic Infrastructure (IMD) Environmental Performance Index (Yale) ICT Development Index (ITU) Democracy Index (The Economist) World Happiness Report (SDSN) Labour Market Flexibility (IMD) Availability of latest technology (WEForum) Health and Primary Education (WEForum) Social Progress Index (SPI) Prosperity Index (Legatum) Labour Market Efficiency (WEForum) Corruption (Transparency Int.)

Global Innovation Index (INSEAD) Human Development (UN) Ease of Doing Business (World Bank) Economic Freedom (Heritage Found.)

Human Capital Index (WEForum) Competitiveness (IMD) Global Competitiveness Index (WEForum)

Positive

Business

Environment

Iceland is a part of the European Inner Market with Tariff-Free Access to the EU. The legal framework adheres to the general European business legislation and practices. Iceland has only 20% Corporate Income tax.

0

5

10

15

20

25

30

35

40

Iceland population

43.872

47.186

60.874

77.967

144.293

279.049

338.349

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

1735

1739174317471751175517591763176717711775177917831787179117951799180318071811181518191823182718311835183918431847185118551859186318671871187518791883188718911895189919031907191119151919192319271931193519391943194719511955195919631967197119751979198319871991199519992003200720112015

Labor force by occupation

•Services73% •Industry22% •Fisheries et al.5%

Examples of catch

Catfish

Haddock

Lobster Redfish

Capelin

Halibut

Shrimp

Saithe

Herring

Plaice

Cod Greenl. Halibut

islandsstofa.is

•SEAFOOD INDUSTRY CLUSTER Sales and marketing Technology Fishing Gear Shipping Research and consultancy United Nations University – Fisheries Training Programme Leading global provider of advanced equipment, systems and services to the food processing industries.

Headquarter in Iceland.

3,700 employees world wide Subsidiaries and offices in 30 countries.

Electricity production from renewable sources.

Selected countries

Country Year Total renewable % of total

(GWh) generation Iceland201518,798 100.00% Zambia201211,69699.71% Congo20127,85299.58% Norway2015140,63899.00% Tajikistan201216,73195.45% Kyrgyzstan201214,037 93.79% Costa Rica20129,27392.24% Uganda20122,52582.92% Colombia201247,66182.44%

islandsstofa.is

•INTERNATIONAL SUCCESS STORIES A global pharmaceutical company that grew out of Iceland.

17,000 employees in 60 countries.

770 employees in R&D and production in Iceland A global leader in orthopaedics Hqin Iceland, subsidiaries in 13 countries.

1,800+ employees Total sales USD 401 million in 2011 Leading global provider of advanced equipment, systems and services to the food processing industries.

Hq

in Iceland 3,700 employees world wide Subsidiaries and offices in 30 countries.

Record growth in tourism

Year% 201116%

201219%

201321%

201422%

Total imports 2013

Bill Isk% Food and bevarages58.26110% Industrial supplies176.97029% Capital goods133.06722% Fuelsand lubricants 114.79919% Transport equipment 49.9228% Consumer goods78.71112% Total imports612.621100%

How to trade with Iceland •Iceland joined the European Free Trade Association (EFTA) in 1970 and was one of the founding members of the European Economic Area –a market of 506 million people.

•Products being imported to Iceland from countries with which Iceland (through EFTA) has a Free Trade Agreement are eligible for preferential tariff treatment, upon submission of proof of origin. This of course applies to the EFTA-Colombia Free Trade Agreement •Iceland in general does not levy export duties.

•For further information please consult the „Doing business in Iceland“ publication: http://www.invest.is/files/skjol/doingbusiness.pdf

Trade balance positive for Colombia

82,6

55,1

65,7

100,8

54,4

99,6

187,3

153,8

119,3

178,1

225,4

231,4

0

50

100

150

200

250

2012 2013 2014 2015 2016 2017

Trade between Iceland and Colombia

M.ISK (2007 first 7 months)

Export to C from IImport from C to I

How to trade with Iceland

•The Icelandic Customs Tariff is based on the Harmonized Commodity Description and Coding System (Harmonized System).

•The 2012 Customs Tariff is available online, https://www.tollur.is/english/businesses/customs/import-duties/customs-tariff/ •The general rule is that import duties are to be paid of imported goods. These are however waivered when preferential treatment applies based on a Free Trade Agreement.

•In addition, excise duties are levied on various goods, new and second-hand, which are imported from abroad or manufactured, processed or packed in Iceland.

•A 25.5% value-added tax is levied on any sale of goods, power or services with various exceptions.

•Further information: https://www.tollur.is/english/

How to trade with Iceland •There are some restrictions which apply in Iceland on the import of live animals, firearms, dangerous substances, pharmaceuticals, etc. For further information: http://www.mast.is/english

Mainimport countriestoIceland(2014 est)

0

100

200

300

400

500

600

Th. EURO

Import opportunities

•Icelanders love good coffee •Few importers of unroasted beans •Icelanders love to try new types of food –excotic/ spicy

A few wholesalersin Iceland

•Íslensk-Ameríska www.isam.is •Hagar www.hagar.is •Nathan & Olsen www.nathan.is •Bananar www.bananar.is •Innnes www.innnes.is •ÁsbjörnÓlafsson www.asbjorn.is •Rolf Johansen & Co www.rjc.is •O. Johnson & Kaaber www.ojk.is •Ísfell www.isfell.is

Maingrocerystores(2014)

0

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Hagar Kaupás Samkaup 10-11 Fjarðarkaup Víðir Others Market share (%)

General information

Business etiquette •Punctuality •Gift giving •Business dress code •Bribery and corruption

Contactsin Iceland

TheIcelandChamberof Commerce Tel. +354 510 7100 e-mailaddress: mottaka@chamber.is http://www.chamber.is TheIcelandicFederationof Trade Tel. +354 588 8910 e-mailaddress: ift@ift.is http://www.ift.is

Usefulwebsites

•General: iceland.is •Importation: tollur.is / mast.is / neytendastofa.is •Trade: promoteiceland.is •Investments: invest.is •Tourism: visiticeland.is/ inspiredbyiceland.com

EFTA-Colombia

Non-tariff measures -HANDOUT-

Tim Kränzlein Tim.Kraenzlein@blw.admin.ch

Deputy Head, Trade Relations Unit, Federal Office for Agriculture, Switzerland

Structure of the presentation

•Non Tariff Measures (NTM): Regulatory context •Sanitary and phytosanitary measures (SPS) SPS in the Colombia-EFTA trade •Technical barriers to trade (TBT) TBT in the Colombia-EFTA trade

What are Non-Tariff Measures (NTM)?

Other thanduties: •Standards andprocedures -SPS -TBT •Customsprocedures •Licencesetc.

Non-tariff measures more and more important as tariff barriers fall

What is WTO?

The World Trade Organization (WTO) sets out the rules of international trade and sort out the trade problems The WTO agreements provide the legal ground rules for international commerce: “…to help producers of goods, exporters and importers conduct their business, while allowing governments to meet social and environmental objectives.”

NTMs in WTO/GATT Agreements

Two specific WTO Agreements dealing with NTMs (food safety, animal and plant health and safety, and with products standards in general) SPS (sanitary and phytosanitary) agreement •TBT (technical barriers to trade) agreement

SPS & TBT in EFTA

Standards in EFTA based on WTO and EU regulations EEA: Norway and Iceland apply EU legislation Switzerland has bilateral EU agreements (also applied by Liechtenstein).

Similar standards for EFTA/EU market participants

Sanitary and Phytosanitary measures (SPS)

What are SPS Measures?

•Certification requirements: food safety, animal or plant

health

•Processing methods with implications for food safety •Plant and animal quarantine •Preventing disease or pests spreading •Other sanitary requirements for imports

Principles of the WTO SPS Agreement

•Standards must be based on scientific justification •Regulations only to protect human, animal or plant life or

health.

•No discrimination between countries / between domestic and imported products •Countries are encouraged to use international standards •Transparency: notification / enquiry point / legal framework

International regulations

International regulations as bases for national regulations Standard setting bodies: –CODEX (foodstuffs) –OIE (animals) –IPPC (plants)

Article 2.13 of the FTA: WTO SPS Agreement applies between the Parties •Co-operation •Forum for SPS experts •Possibility to develop bilateral agreements

SPS in EFTA-Colombia FTA

SPS in EFTA

•EEA agreement, 1994 •General principle: authorised third countries / third country establishments must comply with EU rules •WTO/SPS agreement, 1995 •CH-EU bilateral agriculture agreement 2002 •From official controls towards private responsibility –Notification Point –Enquiry Point

An export oriented industry

•Cooperate with public sector in own country •Cooperate with scientific institutions (provide information etc.)

•Comply with official requirements in the importing country •Comply with the market requirements -health/hygiene -quality/consumer taste -private standards • Int. standards (CODEX, OIE, IPPC) = ”quality stamp”

Practical case: banana

Some furhter information • The European Commission’s food safety website: https://ec.europa.eu/food/safety_en •The European Food Safety Authority website: http://www.efsa.europa.eu/ •The rapid alert system for food and feed website: https://ec.europa.eu/food/safety/rasff_en

Technical barriers to trade (TBT)

Technical regulations and standards

Technical regulations and standards are dealing with : Product characteristics •Process or production method •Terminology •Packaging •Marking or labelling requirements Technical regulations must be mandatory Sometimes stricter market standards apply

Principles of the WTO TBT Agreement

•Regulations and certification procedures shall not create unnecessary obstacles •Adoption of appropriate standards for interests of overriding importance •Applying of international standards •No discrimination: between countries or between domestic and external products •Recognition of conformity assessments procedures •Notification of all new or changed regulations

Technical regulation

Three elements that must be met in order to fall within the definition of “technical regulation” in the WTO Agreement: •Apply to an identifiable product or group of products •Lay down one or more characteristics of the product •Compliance with the product characteristics must be mandatory

Article 2.14 of the FTA: WTO TBT Agreement applies between the Parties •Strengthen cooperation •Exchange of contact points •Possibility for consultation regarding -technical regulations -standards -conformity assessment

TBT in EFTA-Colombia FTA

CAP MRA conformity assessment procedures -> mutual recognition agreements) Bilateral recognition of a CAP Mutual recognition agreement (MRA) EU –EEA MRA (Prot. 12 of the EEA agreement) •EU –CH MRA (June 2002)

Norway, Iceland and the EU •Most Norwegian and Icelandic technical regulations and standards are the same as the EU •Only few remaining substances where Norway has stricter provisions than the EU •MRAs extend the EU Internal Market the EEA/EFTA States may not conclude MRAs with countries outside the EU (unless already an agreement with the EU) Further information: http://www.standard.no/http://www.stadlar.is

Switzerland / Liechtenstein

•MRA between EU and Switzerland •Federal Law on Technical Barriers to Trade Article 4: technical legislation has to be drafted in such a way that it does not create trade barriers (exceptions for public health, safety environment) •Liechtenstein for the most part applies Swiss technical regulations and standards deriving from its customs union with Switzerland.

Examples of TBT (CH)

•Organic farming: CH ordinance on organic farming equivalent to EU legislation on organic farming •Labelling for battery hen eggs: More stringent rule than EU legislation •Labelling for Hormone beef: In contrary to EU no import ban, but labelling

Practical case: organic banana

•Machinery •Medical Devices •Gas appliances and boilers (Hot water boilers) •Building products •Electrical equipment •Measuring instruments and pre-packages •Motor Vehicles •Agricultural and forestry tractors •Medicinal products, Good Manufacturing Practice (GMP), inspection batch and certification etc.

SpecificregulationsCH-EU

International Standardisation organisations •www.iso.org •www.IEC.ch •www.itu.int Corresponding European Standardisation organisations •www.cenorm.be •www.cenelec.org •www.etsi.org

Norwegian Ministry of Trade, Industry and Fisheries

Håvard Figenschou Raaen, Deputy Director

Bogotá, 4 December2017

How to export to EFTA countries - Norway

Overview

•Norway in international trade •Exports from Colombia to Norway •Export opportunities in the Norwegian market •Importer requirements •Business culture •Informationfor exporters to Norway

Quick facts about Norway

•Area: 384 802 km2 •Population: 5,1 million •Languages: Norwegian and Sami •Capital city: Oslo •GDP: 370 bill. USD (2016) •GDP per capita: 80 349 USD (2014-2016) •Currency: Norwegian Krone (NOK) •1 USD = 8 NOK

Norway’s rank in international trade

Population and economy Population: Number 120 in world Gross Domestic Product: Number 29 in the world

Trade in goods: 0.56 % share of world total exports (no. 36) 0.45 % share of world total imports (no. 40)

Trade in services: 0.76 % share of world total exports (no. 30) 1.0 % share of world total imports (no. 28)

Norway’s imports of goods

(bill. USD)

HSProduct label Value in 2016 % of total import

Total valueofimports72 100

84Machinery; mechanical appliances etc 1014

87Vehicles other than railwayortramway 8,612

85Electrical machineryand equipment 6,5 9

73Articles of iron or steel 3,1 4

89Ships, boatsand floating structures 3 4

94Furniture, seats, bedding, lamps 2,8 4

27Mineral fuels, mineral oils 2,6 3,5

90Optical, measuring, medical instruments 2,6 3,5

39Plasticsand articles thereof 2,3 3

Source: International Trade Centre

Colombia –Norway Business Relations

•Strong increase in trade the last ten years •Several large Norwegian investments in Colombia •Colombian-Norwegian Chamber of Commerce in Oslo

Colombia's exports to Norway

(mill. USD) HSDescriptionValue in 2014Valuein 2015Value in 2016% 2016 Total exports121119121 100 99Special provisions67 59 59 49 09Coffee37 43 35 29 27Mineral fuels, oils10 10 1311

08Edible fruits and nuts 3 4 9 7

06Live trees, plants, cut flowers 1 1,2 0,9 1,4

73Articles of ironand steel0,020,1 0,5 0,4

84 Nuclear reactors, boilers, machinery 0,10,06 0,4 0,3

71 Natural or cultured pearls, precious stones0,10,07 0,2 0,2

Exports from Colombia to Norway

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Exports from Norway to Colombia

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

The Norwegian Customs Tariff: www.toll.no

The Norwegian Market –Export Opportunities

•Groceries •Fruit and vegetables •Organicfood •Wine and Spirits •Textiles and clothing •Footwear •Sports equipment •Furniture

Groceries market

•Market value: 19 bill. USD excl. VAT (2015)

Source: Virke

42,3

29,4

24,4

3,9

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Norgesgruppen Coop Rema 1000 Bunnpris

Fruits and vegetables

•Total value of imports: 1 bill. USD (2016) •High share of F&V consumption are imports: •98 % of fruits •48 % of vegetables •69 % of berries •38 % of potatoes •Main importers: - Interfrukt - UNIL

Organic Food

•Market value of 300 mill. USD (2016) 25 % increase from 2015 •1,8 % market share in 2016 •Ambition to reach 15 % market share by 2020

Wine and Spirits

Vinmonopolet has the exclusive right to retail wine, spirits and strong beer in Norway.

If you want to supply Vinmonopolet, you must be a wholesaler registered with the Directorate of Customs and Excise as liable for excise duty You can apply for a wholesale agreement with Vinmonopolet once you have been approved by the Directorate of Customs and Excise For more information: www.vinmonopolet.no

•For information about importers:

The Norwegian Wine & Spirit Suppliers (VBF).

•Website: www.vbf.no

Main clothing retailers

Market value: 3,9 bill USD (2016)

Source: Virke 50,1

14,6

8,2

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43,9

3,8

2,9

2,7

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Footwear market

Market value: 520 mill. USD (2016)

47,7

25,6

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Eurosko Others Shoe-d.Vision Nilson Group Mani Bianco

Source: Virke

Sports equipment market

Market value: 1,8 bill. USD (2016)

28,5

27,6

16,6

9,1

7

5,9

5,3

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GresvigXXLSport 1 Others Stadion Coop MX-sport

Source: Norsk sportsbransjeforening

Furniture market

Market value: 2,2 bill. USD (2016)

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9 9

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Ikea Others Bohus Skeidar Møbelringen Jysk

Source: Virke

Importer requirements

Quality

•Health safety •Traceability •Reliability: Contracts and deadlines •Corporate social responsibility/ Ethical Trade •Price

Standards and safety

Responsible Business Conduct

•Important issue for Norwegian companies •Key international standards •OECD Guidelines for Multinational Enterprises •The UN Guiding PrinciplesonBusiness and Human Rights •UN Global Compact

Business culture

Rules before relations

•The business contract is considered irrevocable •Flat business hierarchy •Punctuality •Open and straightforward negotiations of terms •Not common for business partners to exchange gifts

Useful information for exporters to Norway

•Where canI find information about Norwegian exporters, products and suppliers?

•Norway Exports: www.norwayexports.no •How do I findoutabout trade fairs and exhibitions in Norway?

•Norway Trade Fairs: http://www.messe.no/en/ •Where canI obtain informationonhowto establish a business in Norway?

•Altinn: http://www.altinn.no/en •How do I obtain informationonNorwegian companies?

•The Brønnøysund Register Centre: http://www.brreg.no/english/ •Where canI learn more about investing in Norway?

•Invest in Norway: http://www.innovasjonnorge.no/en/start-page/invest-innorway/

•Where canI find information about Norwegian commercial agents:

•Commercial Agents Scandinavia: http://www.commercialagentsscandinavia.com/

Virke –The Enterprise Federation of Norway

•Virke organizes and represents over 20 000 Norwegian businesses with more than 225 000 employees in Norway.

•Virke covers industries such as trade, knowledge, technology, travel, service, healthcare, education, culture and voluntary work.

•Virke can be contacted for market information and company matching.

Websites with more information

1.Virke–The Enterprise Federation of Norway

Website: http://www.virke.no

2. Norwegian Directorate of Customs and Excise

Website: http://www.toll.no/

3. Oslo Chamber of Commerce

Website: www.chamber.no

4. International Trade Centre (ITC)

Website: http://www.intracen.org/ ITC is the joint agency of the WTO and the UN working to help developing and transition countries achieve sustainable development through exports.

5. Invest in Norway

Website: http://www.innovasjonnorge.no/en/start-page/invest-in-norway/ Invest in Norway is the Norwegian Government's investment promotion agency 6. Colombian-Norwegian Chamber of Commerce www.colombia-norway.com

Norwegian Ministry of Trade, Industry and Fisheries

Thank you for your attention