May 19, 2024
Colombian economy

U.S. State Department: Colombia’s Strengths Outweigh Weaknesses for Foreign Investment

A new report from the U.S. State Department finds that Colombia offers relatively favorable conditions for foreign direct investment (FDI) here – even though some regulatory areas still need updating or improvements

The new U.S. report – just one of dozens analyzing the relative strengths/weaknesses for FDI in 170 nations globally – notes that Colombia stands above most nations thanks to Free Trade Agreements with the U.S., Europe, Canada, Israel and many other countries, along with regulatory frameworks “that give stability to business,” as noted in a subsequent analysis from the Colombian-American Chamber of Commerce (AmCham-Colombia).

However, “there are pending issues to overcome in matters of intellectual property and non-tariff barriers for businesses,” AmCham cautioned.

The report “indicates that, based on the World Bank’s Doing Business, in the [Latin America] region only Chile and Mexico surpass Colombia in the conditions for foreign investment,”| AmCham notes.

What’s more, “between 2018 and 2019, the flow of foreign investment to Colombia increased by 25.6%, of which about a third in was allocated to the extractive sectors [oil-and-gas, mining] and another 21% to professional services and finance in 2019.”

“Historically, the United States has been the main foreign investor in Colombia,” added María Claudia Lacouture, AmCham-Colombia executive director.

“There are currently about 450 U.S. companies in Colombia that generate just over 100,000 direct and indirect jobs. The State Department document contributes to the generation of confidence so that the presence of these companies in the country increases,” she added.

“The report highlights the improvement of security in metropolitan areas, the existence of a market of 50 million people and an abundance of natural resources along with a growing, educated middle class,” AmCham notes.

“Legal and regulatory systems in Colombia are consistent with international standards, as well as a broad legal framework for companies and FDI,” the group added.

The full U.S. State Department report on Colombia is available here: https://www.state.gov/reports/2021-investment-climate-statements/colombia.

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