1. Opportunities with our new Free Trade
Agreement Colombia – USA
May 2012

2. 0% Duty
100% Business Opportunities
1.000% Fulfilling Experiences

3. OUTLINE
Colombian Economic Outlook
What does the FTA between the United States and Colombia
imply?
Colombia a country for buying, investing and traveling
About us…

4. 2011 was a year of great economic achievements
• 1 million barrels
• 5.9% growth rate • 2 million new
of oil and gas
in 2011 jobs*
production
12% higher than the
Fourth largest
average growth rate Unemployment
producer in Latin
of Latin America rate (11%)
America
(3.6%)
• Direct Foreign • Exports of goods
Investment (U.S. and services U.S. • Reduction of the
$ 13.234mill) $ 60.000mill fiscal deficit
(2.2%*)
• (4.0% of GDP) • (18.5% of GDP)
Record figure in Record figure in Reduction of the
the history of the history of fiscal deficit
Colombia Colombia (2.2%*)

5. In GDP terms, Colombia is the 28th largest economy in the
world using the PPP method of evaluation
GDP (PPP) US $ Billion - 2011
466
443 423
387 378 367 348
301 298 278 272
246 233
205 184
133
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SW M
N
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N
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A
R
I
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YS
LA
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LA
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PE
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IS
A
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B
N
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M
O
IT
C
SI
H
SW
N
Note: PPP (Purchasing Power Parity)
(February 7 2012)

6. GDP per capita adjusted to PPP reaching US$10,000
Colombia's GDP per capita (PPP)*,
2000 – 2011e (US $)
9.790
8.842 8.940 9.310
7.817 8.474
6.343 6.817 7.204
5.826 5.984 6.151
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(e)
+60%
•GDP Per Capita adjusted to prices at purchasing power parity (PPP)
Source: EIU (Economist Intelligence Unit)
(February 7, 2012)

7. Macroeconomic stability
GDP, Inflation and Unemployment rate (%) 2002 – 2011
(Annual Average)
Unemployment
rate
GDP
Inflation
Source: DANE- Colombia Central Bank - EIU: Economist Intelligence Unit Forecast
e: Estimated (February 2012)

8. In 2011 Colombia reached the highest FDI inflow
in history
Main Investors in Colombia
2000 – 2011**
United States
• US $9,595 million
• Share of 24.8%
England
• US $5,684 million
• Share of 14.7%
Spain
• US $3,431 million
• Share of 8.9%
Canada
• US $1,373 million
• Share of 3.6%
Variation 2010–2011: +92%
*Figures obtained through the foreign currency balance of the Bank of the Republic.
**Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil
sector. Accumulated value 2000 – 2011: US $38,615 million
Note: the list of the top countries investing in Colombia does not include Anguilla or Panama, in third and fourth
place.
Source: Bank of the Republic - Balance of Payments

9. Colombia is also increasing its outbound investment flows
US $
Million
Ranking of countries
receiving FDI from
Colombia (2000-2010)
1. USA
2. England
3. Panama
4. Brazil
5. Peru
6. Guatemala
7. Mexico
8. Chile
9. Ecuador
10. Venezuela
Assembly of the first 500,000-volt Purchased 60% of Peruvian energy
electric transmission system in Peru. company Cálidda.
Investment: US $130 Million Investment: US$ 111 Million
Purchased ING companies in Chile, Mexico, Acquisition of one hundred percent of the
Peru, Uruguay and Colombia Central American Bank
Investment: US$ 3.763 Billion Investment: US$ 1.9 Billion
Source: Banrep

10. In eight years, exports quadrupled
Top Exports Destination, 2011
United States
• US $21.720 million
• Share of 38.1%
Netherlands
• US $2.524 million
• Share of 4.4%
Chile
• US $2.205 million
• Share of 3.9%
China
• US $1.989 million
• Share of 3.5%
Variation 2009 - 2010: -21.2%
Variation 2010 - 2011: 43%
Variation Jan – Mar 2010 vs. Jan – Mar 2011: 23.2%
Source: DANE (National Department of Statistics)

11. National Development Plan 2010 - 2014
AGRIBUSINESS MINING
INNOVATION
INFRASTRUCTURE HOUSING

12. Productive Transformation Program: A Public - Private
Partnership to strengthen and build “world class sectors”
INNOVATION
INFRASTRUCTURE
AGRIBUSINESS
MINING
|

13. A country with various regions and opportunities
for investment
Caribbean
Region Caribbean Region: tourism, logistics,
petrochemical cluster, construction
materials, and an export platform to the
Caribbean/Atlantic
Central / Andean
Region
Central/Andean Region: service
outsourcing, high value-added
Pacific Orinoquía manufacturing, hub to cover the domestic
Region Region market, and a specialized agriculture
industry.
Pacific Region: manufacturing,
agroindustry, logistics, biotechnology, and
Amazon an export platform to the Pacific Rim.
Region
Orinoquia Region: agriculture, forestry,
biofuels, and hydrocarbons.
Amazon Region: conservation and
ecotourism (Leticia).

14. “Colombia, one of the stars of Latin America…”
IEE (Institute of Economic Studies) - Spain
“Colombia will do better than other countries of the region in case of a
new global recession… The country has accumulated savings which
can stimulate the economy in case of an economic downturn.”
Rodrigo Chavez – Director, Latin America and Caribbean
“Colombia has become an attractive destination for investment…Increased
security promoted per capita GDP growth since 2002.”

15. “From nearly failed state to emerging global player, in less
than a decade.”
THE COLOMBIAN COMEBACK:
Colombia’s President Juan Manual
Santos interview with TIME.
The hemispheric gathering
(“Sixth Summit of the Americas”
in the Caribbean city of
Cartagena), marks a comeback
for Colombia, which is emerging
from half a century of crippling
guerrilla, drug and political
violence and is making a serious
bid to be Latin America’s new
economic and diplomatic player.
Source: TIME Magazine, April 23, 2012

16. OUTLINE
Colombian Economic Outlook
What does the FTA between the United States and Colombia
imply?
Colombia a country for buying, investing and traveling.
About us…

17. Main Features of the FTA
Issues addressed during the negotiation:
-Labor -Government bids -E- commerce -Services -Dispute resolution
-Intellectual property -Competition -Environment -Investment regime
-Market access (industry and agriculture)
ATPDEA, preferences were consolidated and extended due to the Colombia-US
FTA.
Colombian companies’ will have access to US
government bids. Provisions regarding
this subject aimed to ensure transparency and
clear regulations.
Both parts will offer national treatment to
either Colombian and/or US companies,
regarding FDI (Foreign Direct Investment).

18. Main Features of the FTA
After the FTA implementation, Colombia will get free access
for 97.5% of the agribusiness products, approximately
1,100 Colombian products (77% fruits, 90% vegetables, 88%
processed vegetables, and 100% flowers) will be duty free.
On the other hand, the United States will have free duty
access for 84.4% of its agro-industrial goods.
99.9% of Colombian industrial products will become duty free immediately upon
the FTA implementation. More than 2,900 Colombian products (building materials 64%,
house-ware(s) 64%, beauty and personal care 55% and auto parts 48%) will have the
benefits
More than 1,600 products of the apparel-textile and ready to wear
categories, 90% for leather manufacturing goods, 73% of footwear and 76% of leather
categories, will enter the American market duty free.
Both parts agreed to eliminate certain legal figures which didn’t facilitate suppliers
to provide their services; Not forcing the local presence of suppliers and not
discriminating on limitations with the number of suppliers, the value of assets or
transactions and the number of employees.

19. OUTLINE
Colombian Economic Outlook
What does the FTA between the United States and Colombia
imply?
Colombia a country for buying, investing and traveling.
About us…

20. A country where you can buy
competitive products, and get
access to other markets, while
also living fulfilling
experiences.

21. A country where you can buy competitive
products.

22. Why buy from Colombia?
Year-round availability for a wide range
of our agricultural products, due to the
country's geographical location .
Some Colombian companies are certified
by: Globalgap, Fairtrade, HACCP,
Organic, Ecocerts, BCS OKO JAS and
UTZ Certified, among others.
Agribusiness

23. Why buy from Colombia?
High availability of skilled and qualified
human resources
Connectivity redundancy
Double-taxation agreements in place or
approval process and Value Added Tax
(VAT) exemption on service exports
High degree of adaptation to new
technologies, specialization, experience
and value-added products.
Presence of several multinational
companies
Colombia stands out for its research in
scientific and health topics
Home to great medical advancements.
Services 23

24. Why buy from Colombia?
The corporate sector has made scientific
and technological knowledge and
creativity available to the productive
sector, thus offering a menu of export
goods or services with more drive and
content.
Colombian companies have international
quality certifications backing their
production processes, such as: ISO 9001;
registration under the National Institute for
Surveillance of Medications and Food
(INVIMA); best manufacturing practices
(BPM); and it’s logistics processes with
the BASC certification.
Manufacturing 24

25. Why buy from Colombia?
Consolidated industry with more than a
century of tradition, already recognized
around the wold .
Ongoing development of new products
with innovation in finishes and
processes following world trends.
Integration of players assures
consistent quality and reliable delivery
times.
Skilled manual labor has granted
Colombian products international
acknowledgement for their premium
qyuality.
Textiles and Apparel 25

26. One of the best environmental businesses,
where you can also access other markets

27. Colombia: the top reformer of the region
Change in Doing Business Ranking, 2007-2012*
(Variation in the number of positions)
Source: Doing Business 2012 World Bank Report
*Positive numbers indicate improvements in business environment

28. Three of the top risk rating agencies granted Colombia
the "Investment Grade”
The three agencies agreed on the country's
positive economic and financial situation,
highlighting:
 Its ability to deal with external shocks
 Its historic fulfillment of obligations
 An increase in its macroeconomic credibility
 A visible improvement in security conditions
May 31, 2011

29. “Colombia is the second most attractive country for
investment in Latin America for the next 3 years.”
Brazil Colombia Chile Mexico Perú
Source: Investor perception research JP Morgan Chase Bank Co.

30. Colombia’s human capital
Labor force growth, 2011 2/ Labor Market Flexibility, 20113/
Rating scale from 0-100. 0: Flexible - 100: Rigid
Brazil, 1
Colombia, 10
Chile, 18
Colombia, 5
10.2% Argentina, 21
Peru,11 Peru, 39
3.9%
Chile, 16
2.5% Mexico, 41
Argentina, 19
1.8%
Brazil, 46
World Ranking of 59 countries
Venezuela, 25
1.6%
% Labor force growth
1.3% Mexico, 37
Venezuela, 69
0.2 %
Source: IMD World Competitiveness, 2011. Ranking of 59 countries.
2/ Ranking, percentage change
3/ The flexibility of the labor market is measured by the rigidity of the employment index.

31. Colombia’s human capital
Availability of Skilled Labor, 2011 6/ Manager Credibility, 2011 7/
Scale 0-10. 0: low availability – 10: high availability Scale 0-10. 0: weak– 10: strong
Source: IMD World Competitiveness, 2011. Ranking of 59 countries.
6/ The labor market has skilled labor available.
7/ The credibility of managers in the society is strong.

32. A Competitive legal framework of areas
15% Income Tax.
No taxes on imports and VAT.
It benefits from FTAs.
No restrictions on sales to the local
market.
Different types of Free Trade Zones
according to the needs of the investor.
Approximately 30 industrial park zones
(Multiuse) and 70 Free Trade Zones
around the country (Single Business).
All Free Trade Zones in Colombia
About 4 million Mt2 available for
companies that want to locate in
permanent FTZ’s.

33. Main Investment sectors from the U.S. to the world
Software & IT Services 17%
Business Services 14%
Financial Services 9%
Communications 6%
Food & Tobacco 4%
Industrial Machinery,
Equipment & Tools
4%
Transportation 3%
Chemicals 3%
Total Greenfield Projects:
39.513 Consumer Products 3%
Textiles 3%
34%
Source: FDI Markets, period 2003-2011. Estimates: Proexport

34. Regional Opportunities by Sector
Opportunities in Assembly and Auto parts
Assembly project for the Latin American
and Caribbean market’s.
Invested in the stamping process, welding,
and finished painted product.
Opened a bus assembly plant in Colombia.
Automotive

35. Regional Opportunities by Sector
Opportunities in Oil & Gas Services
A New plant with STAR technology,
specialized in oil extraction.
Indian company established in Colombia to
increase extraction and production.
Establish a new TSX lab for analysis of
different minerals.
Oil Products
and Services
35

36. Regional Opportunities by Sector
Opportunities in Agribusiness
Development of 12,000 hectares of sugar
cane for an ethanol plant with a capacity of
376,000 liters per day.
Invested in the expansion of the facility in
the city of Cali.
Opened a new plant in Valle del Cauca.
Agribusiness
36

37. Regional Opportunities by Sector
Opportunities in BPO, Software & IT Services and
Telecommunications
Global services center for BPO and IT
operations.
Services center for financial and
accounting operations.
Data Center oriented to System
integration and support services.
IT and
BPO&O
37

38. Regional Opportunities by Sector
Opportunities in Production, Research & Development
Centers and Logistics
3 different plants and new global
innovation center.
A plant production and Headquarters
that cover 9 countries in Central and
South America.
Logistic Center to distribute all the of
the Andean Community countries.
Cosmetics,
Toiletries, and
Cleaning Products 38

39. FTA´s
Norway
Norway
European Union
European Union
Iceland
Iceland
Canada
Canada
Liechtenstein
Liechtenstein
United States
United States Switzerland
Switzerland
Turkey
Turkey
South Korea
South Korea Japan
Japan
Dominican Republic
Dominican Republic
Guatemala Israel
Israel
Mexico
Mexico Guatemala
Honduras
Honduras
Costa Rica
Costa Rica
El Salvador
El Salvador Gulf Community
Gulf Community
Venezuela
Venezuela
Panama
Panama
Ecuador
Ecuador
Brazil
Brazil
Peru
Peru
Bolivia
Bolivia
Australia
Australia
Uruguay
Uruguay
Chile
Chile
Paraguay
Paraguay
Argentina
Argentina
New Zeland
New Zeland
In Force Signed In Negotiation Future All
Source : Ministry of Commerce, Industry, and Tourism

40. Colombia as an export platform from the United States to
Brazil
Air
Maritime
Source: Estimates Proexport
Source: Estimates Proexport
*** IATA tariffs (not airline tariff) in order for a high denomination
*** IATA tariffs (not airline tariff) in order for a high denomination scale
scale

41. Doing business and living fulfilling experiences
at the same time

42. Tourism Products
Nature Tourism
Sun and Beach
Cultural
Adventure
Nautical and Cruises
Health and Wellness
MICE Tourism

43. International tourist arrival growth rate in Colombia
triples vs. worldwide arrival rate
World international tourist arrival vs.
International Tourist Arrivals in Colombia 2000-2011
World Arrivals
At the end of 2004
Average Growth Rate Proexport starts the
2001-2011: promotion of international
3.4% tourism in Colombia
Arrivals in
Colombia
Average Growth Rate
2001-2011
10.3%
Arrival growth rate in Colombia 2010: 8,9% - World 2010: 6,7%
•Arrival growth rate in Colombia 2011: 7,3% - World 2011: 4,4%
Source: WTO, Migracion Colombia. Proexport calculations

44. Growing aerial international connectivity
Colombia currently has more than 700
weekly international flights, connecting
to 20 countries throughout the world.
•The number of international direct
flights to Colombia has increased over
130% throughout the last decade.
•Colombia has one of the most
extensive domestic flight networks in
Latin America, over 4,000 domestic
weekly.

45. A few hotel projects in Colombia by prestigious chains
B/quilla - 118 rooms
Cartagena - 268 rooms
Bogota- 191 rooms Bogota – 145 rooms .
Bogota – 264 rooms Cartagena - 140 rooms
Bogota - 239 rooms Bogota - 142 rooms
B/quilla – 126 rooms Bogota – 268 rooms
Bogota - 180 rooms Bogota - 251 Hab.
Bogota - 95 Hab.
Medellín
Bogota – 76 rooms
Bogota – 216 rooms Bogotá – 126 rooms
Cartagena – 256 rooms Cali - 150 rooms
Valledupar -108 rooms Cartagena- 278 rooms
Bogota
Bogotá - 56 rooms
Medellin – 140 rooms. B/quilla - 180 rooms
Bogota – 251 rooms
Armenia - 140 rooms Armenia - 95 rooms
Medellin - 68 rooms
Bogota – 95 rooms
Cartagena – 233 rooms
Cartagena - 250 rooms
2008 -2009 2010 2011 2012 - 2014
Opening year

46. 0% Duty
100% Business Opportunities
1.000% Fulfilling Experiences

47. About us
Entity in charge of Promoting International
Tourism, Foreign Direct Investment, and
Exports
EXPORTS INVESTMENT TOURISM

48. Portfolio of Export tools
Strategic plans to work together with exporters
1
Colombia
Commercial Information and supply suitability (Zeiky, DEI, Cooperación)
2
3 Trade Missions for Buyers
4 Business matchmaking
Colombia and the Exterior
5 International Trade Shows
6 Technical Missions and Trade Missions
7 Showrooms
8 Website for Exporters and Buyers
Trade Agenda
9
Exterior
Trade Missions for Exporters
10

49. Portfolio of Investment tools
1 Seminars for investors
Colombia
2 SIFAI
3 Joint promotion at regional level
Colombia and the
4 Preparation of tailor made information
exterior
5 Coordination and development of agendas for investors
6 Work with journalists and influential opinion generators
Exterior
7 Seminars and international events

50. Portfolio of Tourism tools
1
Colombia
Joint work plan - Export Plan
2 Institutional Projects
Colombia and the
3 Special Projects
Exterior
4 Business matchmaking
5 Specific Promotional Activities
6 Joint promotional plans with operators
7 Workshops, destination presentations and International Trade Shows
Exterior
8 FAM Trips
9 Tourism Portal
10 Value Added Institutional Presence (activations)

51. Proexport around the world

52. Rely on us to support you in identifying and
developing business with Colombia
Nombre
Cargo
Correo electrónico
www.proexport.com.co