- Posted by Colombia
- On Friday August 2nd, 2019
- 0 Comments
The European Union (E.U.) is one of the most important economic and political actors in the world. According to the reports from the International Monetary Fund, four of the ten largest economies in the world, with a combined $18.749 billion USD Gross Domestic Product according to World Bank data, are part of the E.U. The E.U.’s large market is an excellent trade and investment opportunity for Colombia and Colombia is increasingly strengthening its ties with E.U.
The E.U. and Colombia share a robust economic relationship. The E.U. represents about 14.7% of Colombian foreign trade, making the E.U. the second largest commercial ally of Colombia, ahead of large economies such as China and being only surpassed by the United States. In 2013 the Free Trade Agreement with the European Union went into effect and its impact has been widely visible. By 2017, the increase in commercial activities between Colombia and Europe was climbing, reaching a figure of $ 980 million USD in direct foreign investment in the fourth quarter of the year and the number of European companies in Colombia increased by 361 incoming companies since 2010, whose new investments totaled $ 11.25 million USD. Additionally, looking towards the future of the E.U.-Colombia relationship, both political and economic signals appear to be positive and favorable to the strengthening of trade between the parties.
During the first quarter of this year, there was an 8.1% increase in trade between the E.U. and Colombia. Most of the growth was in the agricultural sector, Colombia increased its exports to the E.U. from 18% in 2013, to about 44% during 2018. Exports of avocado, palm oil and carnations experienced the highest levels of growth. The estimated total value of commercial activity between Europe and Colombia reached the value of $12.43 billion USD in 2018.
Recently, Colombia and the E.U.’s political and diplomatic ties strengthened. Over the past several months the Colombian authorities and several entities in the United Kingdom, Switzerland and France met multiple times. Dialogue between the British Prime Minister Theresa May and the Colombian government expressed great interested in maintaining commercial flows while the U.K. works through Brexit. Also, agreements were reached with the governments of Switzerland and France to further strengthen trade, especially in agricultural and food exports, generating a favorable outlook for increased investments in Colombia.
The outlook for economic ties between the E.U. and Colombia is positive and promising for future growth. The current political and economic climate favors the growth of trade, the exchange of technologies, knowledge and investment in Colombia.
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