FTA Between Canada, Colombia Goes Into Effect
The free-trade agreement passed last year between Colombia and Canadais going into effect this summer, opening the door to duty-free tradebetween the two nations.
The FTA covers a wide range ofindustries, including apparel and textiles, dubbed “major job creators”by Colombian trade association Proexport.
For Colombia, the FTA will provide an opportunity to tap into Canada’s buying power and economic stability. The International Monetary Fundrecently upgraded its growth forecast for Canada’s gross domesticproduct from 2.8 percent to 2.9 percent, indicating a faster rate ofrecovery from the global economic downturn.
Colombian companiesare also hoping to attract investment from Canadian companies,particularly in technological fields such as telecommunications,computer services and software.
Proexport, which providesconsulting advice on investment and export, has identified keyopportunities for Canadian businesses, “both in public procurement andin the export of products of high potential.”
In addition to the investment opportunities in Colombia, Canada will have access to 33 million potential consumers in Colombia.
Thisis Colombia’s first FTA with a North American country. The UnitedStates–Colombia Trade Promotion Agreement has been slowly moving forwardafter an April action plan proposed by U.S. President Barack Obama andColombian President Juan Manuel Santos to strengthen labor rights inColombia and reform the country’s criminal code to prosecute threatsagainst labor organizers.—Alison A. Nieder
