Bogota 2015 Blog: Evaluating Colombia's Free Trade Agreements

By
Carin Zissis

Panelists gave insights on trade accords and Colombian priorities to diversify its export portfolio. 

Panel: Evaluation of the Principal FTAs Signed by Colombia

  • Sergio Clavijo, President, ANIF (moderator)
  • Kevin Whitaker, United States Ambassador to Colombia
  • Kurt Kunz, Swiss Ambassador to Colombia
  • Eduardo Muñoz, Vice Minister of Trade, Ministry of Trade, Industry and Tourism

U.S. Ambassador Kevin Whitaker kicked off the panel by focusing in particular on his country’s free-trade agreement with Colombia and how it helped Washington’s relations with the Andean country shift focus from security to commercial ties.

 

 

The diplomat addressed concerns about the negative impact of the trade deal in Colombia by arguing that it provides Colombian consumers with more and better options while proving an opportunity for Colombian exporters; since the trade deal went into effect, 1,900 Colombian companies, mostly in the manufacturing sector, have exported to the United States, he said. He admitted that there will at times be discord over trade, and that it is a challenge to have a good answer when he’s questioned on trade barriers or subsidies for products such as ethanol. But he commended Colombia for its progress, including on labor rights, and called on the country’s private sector to play a leading role when it comes to the post-conflict era.

Switzerland’s Ambassador Kurt Kuntz gave his views on the Swiss-Colombian trade pact, noting that such deals typically double the volume of trade between countries in about 10 years. He said that it is too early to tell the results of the bilateral deal in this case, but that there are 169 new Colombian companies exporting to Switzerland and a potential for more. Kuntz pointed out that there are few "non-commodities" in Colombia's exports but that priority areas exist, including fresh fruit, fine cacao for Swiss chocolate, natural ingredients, and textiles. On the Swiss side, potential lies in natural products, medical devices, and infrastructure projects. He called the trade accord a "multi-dimensional" means to promote investments in the country and open markets.

Vice Minister Eduardo Muñoz echoed Kuntz by saying Colombia should diversify its export portfolio. Roughly 48 percent of exports come from three particular provinces in Colombia, and focus on the energy-mining sector. Moreover, nearly 80 percent of non-energy-related products come from just five of the country’s provinces. He posed the question of how to take better advantage of trade deals, calling for a long-term vision. Muñoz also added that it is important to view trade as a two-way street; one should not fall into the temptation of trying to prevent imports. Finally, he made the case that the biggest forgotten topic in the discussion is the services sector—an area where Colombia needs to improve. 

Watch the full panel: