3 Reasons Businesses Should Consider Investing in Colombia

In the 10 years since the signing of the U.S. – Colombia Trade Promotion Agreement, a free trade agreement between the two nations, Colombia has promoted economic growth for businesses that invest there.

The U.S. Chamber of Commerce’s U.S.-Colombia Business Council (USCBC) and ProColombia recently worked together to launch the Colombia - U.S. Investment Roadmap. This 88-page document details why businesses should invest in Colombia and shares the success stories of those that have.

To celebrate the launch of the roadmap, the U.S. Chamber hosted the Colombia - U.S. Investment Roadmap Launch, where the authors of the roadmap, Colombian leaders, and business managers discussed the state of economic development in Colombia.

The United States Is Colombia’s First Trade Partner

To start the event, the Ambassador of Colombia to the United States, Juan Carlos Pinzón, discussed the importance of the relationship between the United States and Colombia. Since the United States first officially recognized Colombia 200 years ago, the two nations have worked together to strengthen each other’s economic interests and diplomacy.

Pinzón emphasized that for businesses looking to trade with and invest in Colombia, the United States is a high priority.

“Colombia sees the United States as our first trading partner, our first investment partner, and our first partner for tourism,” said Pinzón. “That’s something that we really value, and we care for the U.S. as the main partner and as the main client.”

“[In Colombia] we care to create equality," Pinzón continued. "We care to create opportunities. We care to promote a better future for our nation. And we see the United States’ partnership as a keystone for that purpose.”

Colombian Exports Have Increased in the Past Two Years

When presenting the Colombia - U.S. Investment Roadmap, ProColombia’s President, Flavia Santoro, shared some statistics to appeal to entrepreneurs who may be interested in investing in Colombia. In 2021, Colombian exports to the United States were over $5.2 billion, 25% more than in 2020 and 22% more than in 2019 before the pandemic, she said.

Santoro noted that Colombia has appealing opportunities for specific industries such as agriculture, food production, health care services, information technology, and creative industries. She also pointed to the strong business relationship the two nations have as a main competitive advantage.

“As American companies [look to] consolidate and diversify their regional supply chains, Colombia will continue to be an ideal ‘friend-shoring’ location,” said Santoro. “Colombia has 17 commercial agreements that enable us to reach over [North and South] America’s 1.5 billion consumers. Only in the Americas does Colombia have preferential access to 97% of the countries.”

“We are aware that the U.S. needs to enhance its supply chains in both pharmaceutical and semiconductor sectors … Colombia can be a destination for foreign direct investment in intensive labor activities,” Santoro added.

Many Businesses Are Relocating to Colombia

The COVID-19 pandemic forced many countries to generate differentiated strategies to attract new investments. Colombia used this as an opportunity. It developed a near-shoring strategy that supports the national government and has led many businesses to successfully relocate to Colombia.

“As of last year, this strategy led to more than 55 U.S., European, Asian and Latin American companies announcing their intention to relocate to Colombia in order to take advantage of the benefits offered by our country,” said Samira Alkhatib, director of new business development for AmCham Colombia.

“In Latin America, Colombia is the third-largest investment destination,” Alkhatib continued. “[A ProColombia report] points out the progress made in improving security within the metropolitan areas, the existence of a market of around 50 million people, and an abundance of natural resources along with the growing educated middle class.”