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COLOMBIA – U.S. INVESTMENT ROADMAP Index COLOMBIA – U.S. INVESTMENT ROADMAP Index Foreword by Flavia Santoro: Outlines the existing synergies in the U.S. and Colombian markets, highlighting Colombia as a business ally. Introduction by José Manuel Restrepo Abondano: Discusses how to deepen investment and trade in traditional sectors, with a focus on improving the investment climate in both countries through regulatory coherences, trade facilitation, and full application of the Free Trade Agreement. Letter from the Project Partners by Myron Brilliant and Bruce Mac Master: Highlights the value of the Colombia-U.S. Trade and Investment Roadmap and the importance of the bilateral commercial ties. • Executive Summary • Colombia and the United States: Two Countries With Long-Standing Relations • New opportunities to explore • Colombia’s Economic Beliefs • The Team • Success Stories • FAQs and Investor Resources Our aim at ProColombia, the country’s country is home to more than 32 Investment, exports, and tourism million hectares available to grow Colombia: promotion body is to incentivize and fruit, vegetables, cacao, coffee, and boost more American investment in tea, among other products. Our rich Colombia, as much in the stock market biodiversity also presents innovative A Key Destination as in the diverse productive sectors opportunities in the cosmetics, chemicals in which we have important trade and life sciences sectors. for Investment opportunities. Tourism continues to grow every year, By: Flavia Santoro We want to encourage the inflow of not just in the number of visitors but also President of ProColombia resources to undertake lucrative projects in range of possibilities for the hospitality in the public and private sectors across services industry, this is in large part here has rarely been a better time to our country in the past 15 years. The Colombia. due to the variety of regions, climates, Colombia offers Tshine a spotlight on Colombia’s United States is our business partner per landscapes and niche business areas. flourishing investment landscape. A excellence. Colombia offers a variety of opportunities, a variety of 24.4%* spike in foreign investment for example, in the manufacturing, The government of President Iván opportunities, for in the first half of 2019, compared The U.S. has always trusted the potential construction and infrastructure sectors, Duque is focused on developing and example, in the with the same period in 2018, reflects of the Colombian market, and the ranging from car manufacturing and consolidating current investment and on manufacturing, a growing interest in Colombia by evidence confirms this. In 2018, the raw materials production to major attracting key companies. ProColombia’s international partners and continues U.S. foreign direct investment flows in infrastructure projects. We are calling aim is to boost Colombia’s position construction and to bolster investor confidence in doing our country increased by 14% compared The United States, on foreign investors to join our projects as a hot spot for investment and infrastructure business there. with 2017. our greatest ally, to modernize roads, railways, river exports. We seek to generate greater sectors. is the largest transportation, and airports. entrepreneurship and opportunities in shaping the future of Colombia. The United States, our greatest ally, is In addition, American tourists compose foreign investor in the largest global investor in Colombia. the majority of visitors to Colombia. There is also huge potential in Colombia’s Currently, the investments of over 450 During 2018, Colombia welcomed Colombia. creative industries for international That is why we are grateful for the American companies are thriving in our 22% more travelers coming from the investors. Our country offers one of the opportunity to collaborate with country. Because of sound economic U.S. than from any other country, lowest operating costs for the provision organizations like the Asociación policies, Free Trade Agreements and confirming that today our country is a of IT services and it is the host country of Nacional de Empresarios de Colombia government stability, Colombia has preferred destination. the World Economic Forum’s only Center (ANDI), the U.S. Chamber of Commerce become an exceptionally prosperous for the Fourth Industrial Revolution in the and the U.S. Colombia Business country in the region and, globally, one Furthermore, today the American market Spanish-speaking world. Council, to create even closer economic of the most flourishing emerging markets represents great opportunities for the ties between the two countries. It is today. 2,219 Colombian companies that have Colombia is the fourth most active Latin our hope that this Investment Roadmap forged successful commercial partnerships American country in the agricultural, demonstrates de dynamism that already The strong alliance between Colombia and are currently operating doing business forestry, and fisheries sectors. Agriculture exists in the relationship and points to and the United States has played an deals with U.S. enterprises. is one of our biggest sectors, as our additional areas for growth. integral role in the transformation of *noted by Colombia’s Central Bank chemicals and life sciences. It is also worth noting that Colombia has established incentives for agribusiness ventures as well A Clear Path as for hotels, theme parks, and ecotourism, among other sectors. to Investments The arrival of foreign capital must be recognized as an opportunity for Colombia to move towards the Fourth and women know that Colombia is a we are working on developing sectoral tax Industrial Revolution. There is no doubt safe destination in which to invest. It schemes and promoting various red- carpet that the United States is a great partner is worth remembering that the United strategies—including tax, institutional, for Colombia, exchanging knowledge, States is currently the leading investor regulatory, legal, and financial tools—that implementing new technology, and By: José Manuel Restrepo Abondano in Colombia. At the close of 2018, make Colombia more attractive. Minister of Trade, Industry, and Tourism increasing our companies’ productivity. Colombia saw inbound flows from the U.S. of US$2.48 billion* (in 2017, this Additional to these new tools, a model Moreover, the arrival of U.S. capital is he economic recovery plan that figure was US$2.17 billion). named Priority Internationalization of a significant opportunity for both countries President Iván D u q u e Strategic Regions will be launched. to jointly develop the orange economy. launched at the beginning of his The interest from U.S. investors is clear, The model is designed to identify areas T In fact, important risk capital funds have term has thus far produced good results, as are the conditions that Colombia’s of regional value that attract foreign been coming to Colombia, boosting including an increase in foreign direct government provides to those looking investment, encourage anchor companies high-potential business ventures in various investment. This economic growth agenda to bring their capital. Likewise, a trade to set up operations, and promote export sectors. has shown to be a promising influence agreement that has existed between the activity in the regions. on the economy creating jobs, two countries since 2012 has become Investors require clear rules, and developing regions, and increasing a powerful incentive that stimulates In terms of landing mega-investments, Colombia’s government is committed to competitiveness and productivity. investment from the United States to Colombia’s government aims to land this goal. Thus, over the next few years, Colombia and vice versa. projects exceeding US$306 million with the help of American businesses, Foreign, as well as domestic investors, and mega-investments exceeding US$1 we will meet the challenge to solidify a should know that this government is pro- Due to investors’ increasing interest, billion, with incentives such as an income U.S.-Colombia relationship that makes a investment, a stance that is demonstrated expressed to Colombia’s government tax rate of 27%, opening doors to obtain lasting contribution to build social equality by creating adequate conditions for as well as to the private sector, the legal stability agreements and to the and to grow Colombia’s economy. development. In short, the government Duque administration is implementing a accelerated depreciation of fixed assets. offers institutional stability and legal strategy that offers important incentives to certainty; it also facilitates matters for Additional to these encourage direct foreign investment mega- Colombia offers great opportunities for investors who require a responsive new tools, a model projects and to boost the current free trade U.S. investment that would reach strategic government when doing business in any of zone model. sectors, as determined by the government: named Priority Colombia’s regions. energy, infrastructure, construction, creative Internationalization In addition to these important components industries (orange economy), Information of Strategic Regions It is important to Colombia’s government in the plan to attract foreign investment, and Communication Technologies that investors know these conditions first- will be launched. which in turn promotes economic growth, services, agribusiness, manufacturing, *Exchange rate (as of September 17, 2019) hand and that American businessmen US$1 = 3,364 Colombian pesos. Letter from
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