With the aim of strengthening the business participation of British companies in Colombia, the British Columbian Chamber of Commerce -BritCham- presented the study: Colombia as a business platform in America for the United Kingdom.
In the study, Britcham identified, among others, 4 competitive advantages that make Colombia one of the main distribution centers of products and services for America.
- Geographic location. According to the study, Colombia is a maximum of 5 hours away by plane from any Latin American capital, which facilitates the shipping of goods and business trips. According to Santiago F. Uribe Santamaría, President of BritCham Colombia, “It is easier for British companies to enter the Latin market through Colombia since the distance between the two countries is 8,384 kilometers and Colombia can be reached easily and in less time. cost to countries throughout the region.”
- Favorable legislation for energy production. Likewise, the study also indicated that Colombia is projected as a power in hydrogen generation and the legislation favors more and more projects in this regard. For the United Kingdom, this issue is key since many of the energy transformation projects in this country have hydrogen as their raw material.
- Strengthened international trade agreements. The trade agreements that the country has with its neighbors on the continent are another value that researchers highlight. “The Colombian free trade agreements, the free zones, the Vallejo and general Plan, the incentives for exports favor production and generate competitive costs for British companies to finish or manufacture their products in Colombia, there are many of the opportunities” , he explained Martin Ibarra, partner, president of the consulting firm Ibarra Araujo, who was leading the investigation.
- Colombia axis of the reconstruction of Venezuela. According to experts, British companies will also have a great opportunity to contribute, from Colombia, to the reconstruction of the Venezuelan economy. In this sense, Martin Ibarra expressed "The opportunities for companies are given not only in terms of export of goods, but also in terms of engineering and infrastructure projects, which will be necessary to contribute to the economic reconstruction that begins in the neighbor." country".
Additionally, the study also identified products with development potential and whose 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 120,000 million dollars, of which the United Kingdom already exports 7,000 million; However, part of the problem for British companies is that this market is being lost rapidly due to tariff issues,” said Ibarra.
In total, the United Kingdom's global exports during 2021 reached USD418 million and, in 2022, this country's exports to the United States alone registered more than USD65 million.
The study also detected how much value of this export balance is likely to pass through Colombia for production and subsequent export to the United States, where sectors such as biodiesel, tableware, tires, among others, stand out, which could be exported with 0% tariffs. “At this time, the international trade card is being reshuffled and it is an opportunity for countries to conquer new markets,” said Martín Ibarra.
