Events > LATAC Opportunities Brochure

Latin America & the Caribbean

Opportunities for UK companies

Colombia

Colombia is the fourth largest economy in Latin America and the Caribbean (after Brazil, Mexico and Argentina according to GDP) [1].

Colombia has improved its business environment in recent years, opening up the market to international companies. After a long period of conflict, it has emerged as a strong economy in the region[2]. Total trade in goods and services (exports plus imports) between the UK and Colombia was £1.2 billion in the four quarters to the end of Q3 2020[3]

UK Exporters to Colombia and local buyers of their products and services have access to the financial support provided by UK Export Finance, with access to Direct Lending at significantly competitive terms and conditions, and Bank Guarantees to support their credit operations leading to procure products and services from the UK Supply Chain.

Market Detail

The UK and the Andean countries (Colombia, Perú and Ecuador) signed a Trade Continuity Agreement with the UK in 2019, guaranteeing the continuation of trade, as the UK left the EU.  In Colombia, the Trade Continuity Agreement has been approved by Congress and is awaiting ratification. The UK and Colombian governments have agreed that while this process is completed, all provisions and preferences will continue as stated in the previous agreement. Colombia has 16 trade agreements in force and 2 signed[4], including the one with the UK. Additionally, Colombia also has 7 investment treaties, including one with the UK[5],  is a member of the Pacific Alliance and Andean Community of Nations and has an open economy, with foreign trade worth 37% of GDP[6]. In May 2018, Colombia signed the Accession Agreement with the Organisation for Economic Co-operation and Development (OECD) and  has a Double Taxation Convention in place with the UK, facilitating taxation for investors.

UK companies exporting to Colombia will find:

  • The UK’s fifth largest export market in Latin America in 2019.
  • The UK was  Colombia’s 3rd largest investor in 2018[7].
  • Contributing factors are the country’s political stability, a growing middle class and improved safety and security after t he signing of a peace agreement in 2016.
  • The UK and Colombia have signed a Double Taxation Convention, meaning the same income is not taxed twice; it was ratified by Colombia in 2020 and has entered into force.
  • A developing location as a regional hub with duty free access to the other Andean nations, Mercosur and Chile.

Opportunities in Colombia for UK companies:

  • Infrastructure
  • Engineering and consultancy for private and public infrastructure projects
  • Opportunities for institutional investors
  • Providers of construction material and equipment
  • Providers of machinery, and specialized equipment for airports, rail systems and water treatment plants.

[1] International Monetary Fund (IMF), World Economic Outlook Database, 10/2020: [LINK]

[2]OECD Library, What is in Colombia’s next economic chapter?, 2019: [LINK]

[3] ONS, publication of UK total trade data, 8/2020: [LINK]

[4] Ministry of Commerce, Industry and Tourism, Report on the Current Trade Agreements of Colombia, RESULTADOS GENERALES DE LOS ACUERDOS COMERCIALES, 2019:  [LINK]

[6] National Department of Statistics (DANE), National Accounts “Main Macroeconomic Aggregates” (2019): [LINK]

[7] Procolombia. The United Kingdom seeks new investment opportunities in Colombia (2019) [LINK]