doing business in colombia · 2016. 5. 26. · •ports –cartagena, salgar, buenaventura...
TRANSCRIPT
![Page 1: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/1.jpg)
U.S. Department of Commerce
International Trade Administration
Doing Business in Colombia
![Page 2: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/2.jpg)
U.S. Department of Commerce
International Trade Administration
Colombia at a Glance
• Strategic geographical
location
• Rated #16 as tourist
destination in 2010 by
NY Times
• Fastest growing market
in Latin America for oil
and gas production
![Page 3: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/3.jpg)
U.S. Department of Commerce
International Trade Administration
• Democratic Republic
• Presidential and Congressional
elections: May 2010
• Results: Juan Manuel Santos 69%Antanas Mockus 27.5%
• Next Municipal Elections: Oct 2011
• Next Presidential Elections: May 2014
Headlines
Government
![Page 4: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/4.jpg)
U.S. Department of Commerce
International Trade Administration
• Next Tier Market under President Obama’s National Export Initiative
• GDP growth in 2010 despite global crisis (4% est.)
• Political stability
• Emphasis on Major projects
• Labor
- Educated
- Motivated
Why Colombia?
An Economic Miracle
![Page 5: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/5.jpg)
U.S. Department of Commerce
International Trade Administration
Why Colombia?
An Economic Miracle
• Well managed foreign
debt
• Frequent travelers to
U.S. and Europe
• U.S. products preferred
• Growing population Photo: New El Dorado Airport
![Page 6: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/6.jpg)
U.S. Department of Commerce
International Trade Administration
Why Colombia?GDP Growth
1991-2010
Source: DANE/IMF
*GDP per capita (nominal value)
1.9%
5.8% 5.6%
2.0%
3.7%
0.9%
-4.2%
3.0%
1.7%
2.5%
3.9%
5.3%
4.7%
6.7% 6.9%
2.7%
0.8%
4.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
1991 1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Asia crisis
Internal
political and
economic
crisis
ATPDEA
Begins World
Financial
Crisis
![Page 7: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/7.jpg)
U.S. Department of Commerce
International Trade Administration
Why Colombia?GDP Per Capita Growth
1991-2010
Source: DANE/IMF
*GDP per capita (nominal value)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
1991 1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
![Page 8: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/8.jpg)
U.S. Department of Commerce
International Trade Administration
Past vs. Present
• Corruption
• Protectionism
• Non- export orientation
• Low investment rates
• Informal business
management practices
• Security concerns
• Economic liberalization
• Diversification of Exports
• More transparency
• Sustained investment in
human resources and IT
• Improved Corporate Governance: Standards, CSR
• Improved Security
1990’s Today
![Page 9: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/9.jpg)
U.S. Department of Commerce
International Trade Administration
Challenges
Social Economic
• Obtain a peaceful
solution to the
internal conflict
• Defeat corruption in
official agencies
• High displacement
rate
• Reduce poverty
• Large informal
economy
• Bureaucracy and
red tape
• Sluggish judiciary
• Tax evasion
• SMEs lack access to
credit
![Page 10: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/10.jpg)
U.S. Department of Commerce
International Trade Administration
• 2011 est. GDP growth 4%
• Venezuela relationship?
• China/India/Brazil trade
growing
• More trade and investment
with Peru, Chile and Canada
• Acceptance of UL standards
• Internet/social networking
• U.S. EXIM granted $1 billion to
Ecopetrol
Image subject to copyright
Market Trends
![Page 11: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/11.jpg)
U.S. Department of Commerce
International Trade Administration
Market Trends: FTA Negotiations
Agreements implemented:
• Andean Community (CAN) (Ecuador, Peru, Bolivia)
• Mercosur (Argentina, Brazil, Paraguay, Uruguay)
• Mexico
• Chile
Ratified:
• Central America Triangle (Honduras, El Salvador
and Guatemala)
• Canada
• European Free Trade Association EFTA (Switzerland, Norway, Iceland and Liechtenstein)
Pending ratification:
• USA
• European Union
![Page 12: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/12.jpg)
Market Trends:
U.S. Colombia FTA • Hearings – March 9th
• Will help NEI but is NOT a panacea
• It can: - Increase trade/investment
- Create/save jobs
- Increase market access for goods/services
- Reduce prices/increase variety
- Improve business climate
- Reduce corruption and informalityU.S. Department of Commerce
International Trade Administration
![Page 13: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/13.jpg)
U.S. Department of Commerce
International Trade Administration
Market Trends:
Major Projects
• TransMilenio – Bogota
• Two Refinery Modernization projects
• Ports – Cartagena, Salgar, Buenaventura
• Infrastructure – Roads, El Dorado Airport
• Telecommunications
![Page 14: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/14.jpg)
Colombian Oil & Gas Opportunities(through 2020)
• Fastest growing market in Latin America – 825,000 BPD
• Huge Investment program = $80 billion
– Cartagena Refinery Modernization US $4 billion
– Barrancabermeja Refinery US $3.5 billion
– Crude and Gas Transport Expansions US $5 billion
U.S. Department of Commerce
International Trade Administration
• Refinery Equipment
• Valves
• Wellhead Equipment
• Compressors
Equipment Needs• Drilling Equipment
• Pipeline-related Equipment
• Enhanced Oil Recovery
![Page 15: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/15.jpg)
U.S. Department of Commerce
International Trade Administration
INFRASTRUCTURE
Ports Cormagdalena is seeking USG assistance in developing the Magdalena River)
SPRC/SPBUN/SANTA MARTA/SPBAQ US$ 50 Million in US exports of security, computer and other port related equipment. CONPES by DIAN/Mincomercio
Puerto Bahia (US$225 million Project. US$ 25 Million in US exports of security, computer and other port related equipment)
Airports El Dorado Airport (US$1.2 Billion project. US$ 200 Million in US exports of security,
computer and other port related equipment)
North-East Region Concession , North-Central Region Concession , Cartagena, Barranquilla and Manizales airport (currently under construction)
Roads RUTA DEL SOL TWO WAY HIGHWAY (US $2.5 billion)
RUTA DE LAS AMERICAS HIGHWAY (US$ 4 billion)
AUTOPISTA DE LA MONTAÑA WAY HIGHWAY (US $ 2.5 billion)
AUTOPISTA DE LAS AMERICAS (US $ 3.5 billion)
LA LINEA TUNNEL PROJECT (Second lane). One way lane currently under construction
![Page 16: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/16.jpg)
U.S. Department of Commerce
International Trade Administration
INFRASTRUCTURE
Mass Transportation• TRANSMILLENEO TYPE - BUS RAPID TRANSIT SYSTEM (US $ 2.5 billion)
Metrocali (Cali): 90% executed. Approximately cost: US$ 800 million.
Metroplús (Medellín): 70% executed. Approximately cost: US$ 300 million.
Transmetro (Barranquilla): 90% executed. Approximately cost: US$ 200 million
Transcaribe (Cartagena): 60% executed. Approximately cost: US$ 200 million
Metrolínea (Bucaramanga): 90% executed. Approximately cost: US$ 200 million
Megabus (Pereira): 98% executed. Approximately cost: US$ 100 million
Transmilenio (Bogotá): Phase I: 100% executed; Phase II: 40% executed; Approximately cost: US$ 900 million
• BOGOTA METRO (US $ 2.5 billion the first phase)
• TREN DE CERCANIAS PROJECT (US $800 million )
• AVENIDA LONGITUDINAL DE OCCIDENTE (ALO) HIGHWAY (US$ 400 million)
• CALLE 13 HIGHWAY (US$ 400 million)
• INTELLIGENT TRANSPORTATION SYSTEMS (ITS) (US$ 500 million just for Bogotá)
![Page 17: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/17.jpg)
U.S. Department of Commerce
International Trade Administration
Market Practices Upcoming Trade Shows
2011
trade.gov
• The 2011 National Association of Broadcasters
(NAB)
April 11-14,, 2011 –Las Vegas, NV
Broadcasting/ICT
•Offshore Technology Conference
May 2-5, 2011 – Houston, TX
Energy - Hydrocarbons
.
***http://www.corferias.com/ for tradeshows in Colombia***
•The National Restaurant Association
Restaurant, Hotel-Motel (NRA Show)
May 21-25, 2011 – Chicago, Il
Hospitality
•Louisiana Oil and Gas Expo
October 23-25, 2011 – Lafayette, LA
Hydrocarbons
![Page 18: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/18.jpg)
Market Practices
Certified Trade Missions
2011• State of Kentucky
(March)
• State of West Virginia:
(April)
• States of No. and So.
Carolina: (April)
State of Arizona: (May)
• State of Colorado:
(October)U.S. Department of Commerce
International Trade Administration
![Page 19: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/19.jpg)
U.S. Department of Commerce
International Trade Administration
Market Practices
Tips for Success in Colombia
• Check the “Clinton List”/OFAC website
• Contact the FCS at the Embassy
• Identify partners/background check
• Use situational awareness for security
• Arbitration clauses in contracts
![Page 20: Doing Business in Colombia · 2016. 5. 26. · •Ports –Cartagena, Salgar, Buenaventura •Infrastructure –Roads, El Dorado Airport •Telecommunications . Colombian Oil & Gas](https://reader035.vdocuments.us/reader035/viewer/2022071502/612202923bb95b4e1f636265/html5/thumbnails/20.jpg)
U.S. Department of Commerce
International Trade Administration
Contact Us
Margaret Hanson-Muse
Commercial [email protected]
Nicole DeSilvis
Commercial [email protected]
doc.govUS Commercial Service
Unit 3030, Box 5120, DPO, AA 34004
Tel: (571) 383-2519
Fax: (571) 315-2171
www.buyusa.gov/colombia