Colombia Promoted as a Leading Latin American Export Hub for the United Kingdom

With the aim of strengthening the business participation of British companies in Colombia, the Colombo-British Chamber of Commerce (BritCham) presented the study: Colombia as a Business Platform in the Americas for the United Kingdom. In the study, BritCham identified, among others, four competitive advantages that make Colombia one of the main distribution centers for products and services in the Americas.

Geographic Location. According to the study, Colombia is a maximum of five hours away by plane from any Latin American capital, which facilitates freight shipping and business travel. According to Santiago F. Uribe Santamaría, President of BritCham Colombia, “For British companies, it is easier to enter the Latin market through Colombia since the distance between the two countries is 8,384 kilometers, and from Colombia, one can reach countries across the entire region easily and at a lower cost.”

Favorable Legislation for Energy Production. Likewise, the study indicated that Colombia projects itself as a powerhouse in hydrogen generation, and legislation favors the arrival of an increasing number of projects in this regard. For the United Kingdom, this issue is key, as many of the energy transformation projects in that country use hydrogen as a raw material.

Strengthened International Trade Agreements. The trade agreements the country has with its neighbors on the continent are another value highlighted by researchers. “Colombian free trade agreements, free trade zones, the Vallejo Plan, and export incentives in general favor production and generate competitive costs for British companies to finish or manufacture their products in Colombia; that is where many of the opportunities lie,” explained Martín Ibarra, partner and president of the consulting firm Ibarra Araujo, who led the research.

Colombia as a Hub for Venezuela’s Reconstruction. According to experts, British companies will also have a significant opportunity to contribute to the reconstruction of the Venezuelan economy from Colombia. In this regard, Martín Ibarra stated: “Opportunities for companies exist not only in terms of exporting goods but also in engineering and infrastructure projects, which will be necessary to contribute to the economic reconstruction beginning in the neighboring country.”

Additionally, the study identified products with development potential for which costs could be significantly reduced if part of their manufacturing process is carried out in Colombia. “In the case of the United States, 80 products were identified with a market of more than $120 billion, of which the United Kingdom already exports $7 billion; however, part of the problem for British companies is that this market is being lost rapidly due to tariff issues,” Ibarra said.

In total, the United Kingdom’s global exports during 2021 reached $418 billion, and in 2022, the country’s exports to the United States alone recorded more than $65 billion. The study also detected how much value from this export balance is susceptible to passing through Colombia for production and subsequent export to the United States. Sectors such as biodiesel, tableware, and tires stand out, as they could be exported with a 0% tariff. “At this moment, where the cards of international trade are being reshuffled, it is an opportunity for countries to conquer new markets,” expressed Martín Ibarra.