THE ANSWER IS COLOMBIA February 17, 2014

THE ANSWER IS COLOMBIA

In 2013, experts agreed:

“Colombia is an economically sound and stable country”.

With: •  Impressive business opportunities. •  A healthy economy. •  Increased stability and security. •  A private sector that is willing to exchange

experiences and services. •  A middle class that is expanding.

+ COLOMBIA CHANGES Upstanding Performance •  Colombia’s performance is outstanding: a GDP average of 6% in the last

decade and a controlled inflation of 3%.

•  20% reduction in poverty in the last 10 years through 2.300.000 new jobs.

•  It is growing more than its regional counterparts, with a consistent macroeconomic growth in the past decade, averaging 4.5% from 2002 to 2012.

•  Colombia attracted the second-highest investment flows in the region as a percentage of GDP in 2012, at 26.2%.

•  Looking to integrate its economy regionally as well as globally through Free Trade Agreements and membership in regional blocs: 16 FTA in force. With USA is in Force since 15 May 2012.

•  Perception of insecurity has drop from 25% (in 2002) to less than 2% (in 2012).

•  The extractive, financial, infrastructure and retail sectors are particularly dynamic.

•  US imports represented 28,7% of the Imports in 2013 as the most important commercial partner for the country.

Full of Opportunities •  Five key engines for growth in the National Development Plan:

•  Mining, Innovation, Housing, Infrastructure and Agribusiness.

•  The middle class expands: Increased size and wealth of Colombia’s middle class, greater access to financing and an inflow of foreign retailers.

+ COLOMBIA OPPORTUNITIES

•  In Infrastructure, the Government has committed to increase investments from 1% to 3% of GDP; Investment allocations in the national budget have more than doubled in recent years, exceeding $4.2b in 2013. By 2014 it will concentrate 45% of investment budget.

•  Colombia’s transportation network ranks poorly even by regional standards, subsidies on place.

•  The construction is in consistent expansion with 3.6% growth in 2012. It includes aggressive government spending programs, a healthy mortgage system.

Full of Opportunities •  Crude oil production surpassed 1m barrels per day. A current generation

capacity of 14,420 MW in hydroelectric and thermal power. Mining activities expanded 6.3% in 2012. An emergence of a biofuels industry by law are activities where new environmental challenges are addressed.

•  Health system seeks to conform to international standards. In 2012 the universal health care system improved coverage and made access to services more affordable.

•  The ICT sector with Vive Digital Plan, expect to facilitate $12.5bn worth of investments by 2014. As the adoption of new technologies is constantly increasing.

•  The Agricultural sector is looking for renovation campaigns, diversification, and productivity to compete. The sector is gradually changing from traditional coffee and cocoa to products with higher demand in markets. With 14.5m ha of unused land, the sector’s growth potential is tremendous.

•  National budget for Defense and Security for 2014 period represents 13% of it, for investment in new equipment and infrastructure for armed forces and police.

+ COLOMBIA OPPORTUNITIES

You are to consider •  INDIRECT COMMUNICATION:

•  Colombians tend to communicate in an indirect and subtle manner.

•  Often a Colombian will say ‘yes’ or ‘maybe’ instead of saying ‘no’ to avoid losing face and maintain harmony.

•  FLEXIBLE TIME: •  Colombians approach time in a very relaxed and flexible manner,

no Fast Answers. •  Punctuality is not essential and planning things to the minute is not

common.

•  TRUST, PERSONAL RELATIONSHIPS & FAMILY: •  Cultivating close personal relationships and building trust are

considered vital components for a deal to be closed. •  As a collectivist culture, family is the central unit of Colombian

society. It is not uncommon to find many family members working for the same business.

•  DON’T rush business dealings with your Colombian colleagues and avoid pressing for final decisions.

•  SPANISH •  Small percentage of the population speaks English.

+ DOING BUSINESS IN COLOMBIA

Upstanding Performance •  Learn how to increase profits and overcome barriers in the Americas during the Trade Winds

business development conference.

•  Network with the region’s leading industry and government officials and experienced U.S. and global companies during the Trade Winds program.

•  Meet one-on-one with top business experts from the U.S. Embassies and Consulates from the region for the latest market entry strategies.

Upcoming Opportunities

May 15 – 23, 2014

A multiple trade mission stop in Colombia,

Panama, Chile, Ecuador, and Peru