The Colombia Texas Chamber of Commerce welcomes you to 2017 and whishes you a year of great professional and personal success. 
This year, we started in an ocean of uncertainties and questions regarding the future of US Trade under the new administration. Even though it is going to take some time to have answers for most of the questions, there are certain elements that we can rely on: the trade balance between the US and Colombia is favorable to the US; the Free Trade Agreement between the US and Colombia is a last generation one with many complementary products involved; Colombia doesn’t represent a real threat to the US economy and lastly Colombia is the most US friendly country in the region, with a market size that is interesting for US companies.
As per the Office of the United States Trade Representative, Colombia is currently the US 20th largest goods trading partner with $31 billion in total (two way) goods trade during 2015. Goods exports totaled $17 billion; goods imports totaled $14 billion. The U.S. goods trade surplus with Colombia was $2.4 billion in 2015. According to the Department of Commerce, U.S. exports of goods to Colombia supported an estimated 77 thousand jobs in 2014 (latest data available). Preliminary 2016 numbers by the United States Census Bureau, show a trade balance in 2016 looking even between the countries totaling $26 billion. The decrease is mainly caused by the slowdown of the oil and gas industry and the devaluation of the Colombian peso.

Part of the improvement in the trade balance between the US and Colombia started after the Free Trade Agreement was signed in May 2012. Over 80 percent of U.S. industrial goods exports to Colombia became duty-free including agricultural and construction equipment, building products, aircraft and parts, fertilizers, information technology equipment, medical and scientific equipment, and wood. Some of the Agricultural products benefitted by the agreement include:  wheat, barley, soybeans, high-quality beef, bacon, and almost all fruit and vegetable products. Before the FTA, the balance had been historically negative to the US, reaching its maximum low in 2011 with an $8 billion deficit. The products the US imports from Colombia are mostly complementary and ProColombia, the government trade bureau, has identified at least 136 products that would be advantageous for the US Market, like glass, textiles, and auto parts to name a few.
Colombia is a 48 million people market with a growing middle class located in 5 strong economic hubs (Bogota, Medellin, Cali, Barranquilla and Cartagena), with many other progressive secondary cities. Colombia is the most US friendly country in the region. Colombian consumers often favor US products and brands over competitors from other countries; US brands are positioned in Colombia as high quality and reliability and give the consumer a certain sense of status. In addition, Colombia’s economy, strong democracy, and political stability favor Foreigner Direct Investment and the country has been working hard in improving its conditions to become one of the most business friendly countries in Latin America.
 
According to the US Commercial Service, coal mining and oil and gas exploration/production are the principal areas of U.S. foreign direct investment in Colombia (though the amount of investment in these sectors dropped significantly in 2015 and early 2016 due to low global commodity prices), followed by consumer goods, high tech and tourism/franchising sectors. The next few years will bring greater investment in the Offshore industry, infrastructure projects ranging from roads (US$ 17 billion budget), and airport modernization, to port construction and expansion.  New FDI will begin to be reflected in major hotel and infrastructure (highway, mass transportation, ports and airport) projects. Colombian companies are also investing in the US, Argos, Indequipos, and Coremar are a few examples.
 
Even though the low predictability 2017 may appear to have, at the CTCC we see a blue sea of opportunities in trade between the US and Colombia. We will continue with our commitment to organize forums with experts and key players who can share best practices and lessons learned that can be applied in Colombia to help solve bottlenecks and encourage new business ideas. We will keep members and friends of the chamber updated and informed on all the developments and opportunities in Colombia via forums, webinars and trade missions. Furthermore, at the CTCC we will provide all the necessary support via commercial agendas, business roundtables, and custom made events to help our members - in the US and Colombia - have a very successful year.
 
As always, I would like to express my deepest appreciation and thankfulness to our members, our board of directors, and the amazing CTCC team.
 
Have a fantastic 2017 and remember that the CTCC is here to help you succeed!
 
Best Regards,
 
Claudia Rojas
President of the Board of Directors
Colombia Texas Chamber of Commerce