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Country Profile of Colombia
2013
Prepared for Atlantic Canada Opportunities Agency, by Alberto Quiroz, CITP

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Table of contents:
Executive Summary ................................................................................................................................................3
Overview Of Colombia.............................................................................................................................................4
History .....................................................................................................................................................................4
Geography...............................................................................................................................................................6
Present Situation in Colombia ..............................................................................................................................7
Current Government ..............................................................................................................................................9
Important Regulations...........................................................................................................................................10
Current Trade Agreements .................................................................................................................................10
Foreign Direct Investment ...................................................................................................................................10
Significant Trade Policies....................................................................................................................................10
Social customs and regional idiosyncrasies ..................................................................................................12
Business Etiquette................................................................................................................................................12
Concerning Regulations related to travel ...........................................................................................................13
Language ...................................................................................................................................................................13
Political Risks..........................................................................................................................................................14
Economic Trends....................................................................................................................................................15
Growth Sectors .....................................................................................................................................................15
Technological Trends...........................................................................................................................................15
Infrastructure Investment and Funding Institutions.................................................................................16
Specific Sectors ......................................................................................................................................................17
Energy....................................................................................................................................................................17
Seafood..................................................................................................................................................................18
Education...............................................................................................................................................................19
Higher Education ..................................................................................................................................................20
Resources for Canadian Exporters....................................................................................................................21

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Country Profile: Colombia
 Executive summary:
Colombia is an interesting and attractive emerging economy, showing the results of a decisive
“Peace and Security” agenda initiated by Past-President Andres Pastrana Arango and
continued with President Alvaro Uribe Velez, combined with international trade openness.
Colombia has enjoyed some of the highest GDP growth in the Americas, around 5.9% in 2011
(higher than Mexico and Brazil), and the estimated growth rate for 2012 is expected to have
grown by at least of 4%.
The recently signed Canada Colombia Free Trade Agreement has removed most of the tariffs
between the two countries and grants national treatment to foreign investors, opening a window
of opportunities for exporters into this exciting market.
However, Canada is not alone in its quest to increase trade with Colombia; the competition is
also active pursuing opportunities. Colombia ranked fourth in the Ernst & Young Globalization
index in 2011 of Latin American countries, just after Chile, Mexico and Peru and before Brazil. It
already has Free Trade Agreements with the United States, Peru, Ecuador, Bolivia, Mercosur
(Argentina, Uruguay, Paraguay, and Brazil), Chile, Mexico, Honduras Guatemala, El Salvador,
Norway, Iceland, and the Caribbean community (CARICOM).). It has signed a Free Trade
Agreement with Russia that has yet to be implemented; and is currently negotiating trade
agreements with Korea, Panama, Turkey, Costa Rica, Israel, and Japan.
As prescribed in the Canada Colombia Free Trade agreement, Colombia provides National
Treatment to foreign investment, and eliminated tariffs on most products of Canadian origin and
for the rest is eliminating tariffs in stages. This provides a level playing field for Canadian
exporters and investors in a solid, stable, and growing economy.
This guide is intended to give the prospective exporter a glimpse of Colombia and its current
economic situation, along with political influences and social drivers. It discusses the regional
idiosyncrasies in business and basic etiquette, including expectations and mannerisms present
in daily formal and social interaction. It also addresses economic and political trends and the
potential for opportunities for Atlantic Canadian exporters, with particular attention to the energy,
seafood (fish), education and professional training market segments.
It includes a list of online resources with statistics and important information on government
ministries and agencies in respective market areas.

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 Overview of Colombia:
o History:
Before the Spanish conquest, Colombia was inhabited by multiple Indian tribes, mainly the
Chibchas, Tirona Simbu and Quimbaya. None of these tribes were as sophisticated as the
Aztecs or the Incas, but were nevertheless peoples of high culture. Most of them lived in small
communities scattered along the high plateau of the Eastern Cordillera of the Colombian Andes.
Another significant group was the Carib people who inhabited the lowlands now bordering
Venezuela.
The Atlantic coastline was first explored by Rodrigo de Bastidas in 1500-01, and the Pacific by
Francisco Pizarro in 1525. The conquest began with the founding of the city of Santa Marta in
1525. The main port of Cartagena was founded by Pedro de Heredia in 1533, and the capital
city of Santa Fé de Bogotá was founded in 1538 by Gonzalo Jimenez de Quezada.
The conquerors organized local governments as directed by the Spanish crown, and the
Audiencia in Santa Fé de Bogotá was subject to the Viceroy of Peru. During the 17th
and 18th
centuries, intermarriage and acculturation rapidly destroyed most of the Indian cultural traits, a
process that was facilitated by the fact that the tribes were small, scattered and spoke different
dialects. The Colombian economy in the 18th
century was centered on mining, agriculture, and a
nascent textile industry. In 1740, New Granada became a Viceroyalty and included the
territories of Colombia, Venezuela and Ecuador. In 1790, the newspaper was introduced in
Bogotá, marking the end of the colonial era.
In 1808, the French invasion of Spain opened the door to unrest, and on July 25, 1810
(commemorated as Independence Day) the subordinated jurisdictions in New Granada threw
out their Spanish officials and a series of civil wars ensued. Spain reconquered the United
Provinces of New Granada between 1814 and 1816, forcing the rebels to the llanos of
Casanare, where they joined Simon Bolívar who eventually defeated the Spanish in Boyacá and
Carabobo (Venezuela) in 1821 and in Pichincha Ecuador in 1822.
The Gran Colombia became a republic in 1821 and included what are now Venezuela, Ecuador
and Panama, but Venezuela and Ecuador seceded from the union in 1830. After the French
failed to finish the Panama Canal in 1880, and the Spanish American War (1898), the United
States decided to finish the canal in Panama. A small rebellion of Panamanian leaders and
French investors declared the independence of Panama in 1903, which Colombia only
recognized in 1921 after the United States paid $25,000,000.
After the loss of Panama, a period of almost forty years of political peace ensued. Between
1940 and 1960 there were difficult times with a period of military dictatorship between 1953 and
1958 that ended when a military junta returned power to an elected president. Interestingly,
during that time (1953-1958) television was introduced to Colombia and women were allowed to
vote for the first time.

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In 1963, the government overran the independent guerrilla movement in Maquetalia, which was
the predecessor of the Ejército de Liberación Nacional (ELN) founded in 1965, and the Fuerzas
Armadas Revolucionarias de Colombia (FARC) founded in 1964. Both were founded as
communist groups with the goal of re-distributing wealth.
The 1960s saw the proliferation of jungle labs that processed psychoactive drugs for export In
the 1970s these labs began to process cocaine and, as of 2011, Colombia was still the world’s
largest producer of cocaine.
The 1970s also saw the rise of several drug cartels: Medellin, Cali, Costa Norte and Valle.
However, the actions of the Colombian National Police against drug trafficking has been so
effective that today the country currently gives technical advice to seven countries in Latin
America and 12 in Africa on fighting illegal drug production.
In 1998, President Pastrana proposed the Plan Colombia, which addressed the need for
development to curb illegal drug trade, and focused on a parallel path of support to the armed
forces and regional development aid. The policy was focused on achieving peace and ending
violence, with the understanding that violence was the result of economic inequity and poverty.
The plan included financial and technical support from the United States, Canada, and the
European Union.
In August 2012 President Juan Manuel Santos Calderón announced exploratory talks with the
FARC in order to seek an end to the conflict; in September a preliminary draft of the proposals
was released prior to a meeting in Oslo in October that was followed by a meeting in November
in Habana, Cuba to continue the discussions on the implementation. Discussions continue and
as of March 2013 no agreement has been completed.

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o Geography
Colombia is located in the northwest portion of South America. It has a Caribbean coastline to
the north and a Pacific coastline to the west, and borders on Panama, Ecuador, Peru, Brazil,
and Venezuela. It also shares ocean borders with Nicaragua, Costa Rica, Honduras, Jamaica,
Dominican Republic and Haiti. Its land surface measures 1,141,748 million square kilometers
and a total surface of 2,070,408 million square kilometers.
Colombia is divided into four major geographical regions. The Andean region is the main
population center and where the three major cities - Bogotá, Medellin and Cali - are located.
The Caribbean Coastal Lowlands is an extensive zone of low, rolling hills, lying between the
northern Andean mountains and the Atlantic Ocean. Today this area supports less than one-fifth
of the population. The main urban centers are Santa Marta, Barranquilla and Cartagena, which
is also one of the major ports.
The Pacific Lowlands comprise the area between the Western Andes and the Pacific Ocean.
This area is known for high precipitation rates and includes the departments of Chocó, Valle del
Cauca, Cauca and Nariño,
The Eastern Plains comprise a bit more than one third of Colombia and is home to
approximately 2% of the total population. They are dense rain forests with vast outwash zones
of multiple streams that drain into the Orinoco and the Amazonas rivers, and are inhabited
mostly by Indian groups.
Colombia is the largest Spanish-speaking nation after Mexico, and before Argentina, with a
population of 46.77 million, where 49% are Mestizo (Mixed European and Amerindian ancestry),
37% are of European ancestry, approximately 10% are black, and 3% are indigenous peoples.
Largest cities (*) in Colombia in terms of population:
Ranking City Population
1 Bogotá 7,571,345
2 Medellin 3,729,970
3 Cali 3,225,580
4 Barranquilla 2,185,359
5 Cartagena 1,492,545
6 Pereira 1,358,676
7 Cúcuta 1,276,329
8 Pereira 616,512
9 Ibagué 600,000
10 Soledad 561,851
*Departamento Nacional de Estadistica.

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 Present situation in Colombia
Colombia has enjoyed a stable GDP growth over the last five years, and has become one of the
CIVETS (Colombia Indonesia, Vietnam Egypt, Turkey and South Africa), which will show higher
GDP growth rates (approximately 4.5%) in the next twenty years than the G7 countries.
Colombia is an interesting and attractive emerging economy, ranking 45 in the World Bank
Doing Business Report of 2013 (#79 in 2006), ahead of Mexico and Brazil and a showing a
positive trade balance. It reached a record of US$60,208 million (FOB) (Departamento
Administrativo Nacional de Estadistica) and imported US$58,088 million (CIF) in 2012.
Canadian imports represented only US$1,132.7 (1.94%) of the total.
Top ten sources of Imports in 2012:
Ranking Imports (US $ Millions CIF) Country of Origin
1 $14,035.4 United States
2 $9,564.7 China
3 $6,362.2 Mexico
4 $2,795.9 Brazil
5 $2,239.6 Germany
6 $2,312.5 Argentina
7 $1,654.1 Japan
8 $1,288.1 Korea
9 $1,132.7 Canada
10 $1,123.8 India
Average growth of imports by Classification between 2004 and 2012
Ranking Classification Average Growth
Rate
1 Fuels & Lubricants 55%
2 Construction Materials 29%
3 Non Durable Consumer Products 19%
4 Consumer Goods 20%
5 Durable Consumer Goods 21%
6 Capital goods for Construction 19%
7 Transportation equipment 19%
8 National Average 18%
9 Industry Capital Equipment 18%
10 Raw Materials and Intermediate products 17%
11 Capital Goods for Agriculture 19%
12 Raw Materials and Intermediate products-
Agriculture 16%
13 Raw Materials and Intermediate products-
Industry 13%
14 Non-Classified. 8%

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Colombia implemented 25 institutional and regulatory reforms in the past eight years as
reported by the World Bank. These reforms were focused on improving the efficiency of
regulatory processes such as business registration and tax administration. In 2010, Colombia
began reforming its legal institutions and insolvency procedures, and strengthening the
protection of minority shareholders, thereby reducing the gap between Colombia and the OECD
most efficient regulatory practices of high income economies.
In addition to the “Peace and Security” agenda initiated by Past-President Andres Pastrana
Arango, President Alvaro Uribe Velez began a reform agenda to reduce obstacles for doing
business aimed at increasing international trade and overall competitiveness. President Juan
Manuel Santos’s proposed plan includes goals to reduce poverty, increase security, generate
employment, increase income, ensure the sustainability of natural resources, and most
importantly to improve the quality of the business environment.
Colombia has enjoyed some of the highest GDP growth in the Americas at around 5.9% in
2011, higher than Mexico and Brazil. According to the International Monetary Fund, average
annual inflation fell from 23% in 1980 to 3.27% in 2012 (DANE). Public finances also improved,
with lower public deficits (as a percentage of GDP) and lower public debt of 35.9% of GDP in
2009 (estimated 20% in 2012).

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o Current government:
Colombia is a constitutional republic, comprised of 32 departments each with its own governor.
As a country it has a central government where the president acts as the head of the state and
of the government. Legislative power sits with a chamber of representatives (162 members) and
a senate (102 members) elected by proportional representation. The cabinet consists of 16
ministers with portfolios in: Justice, Defence, Interior, Economy (Hacienda), Commerce, Mines,
Technology information and Telecommunications, Culture, Agriculture, Environment, Transport,
Education, Housing, Labor, Foreign Affairs and Health.
Elections are held every four years and the president is eligible to serve two consecutive terms,
and members of Congress are elected via proportional representation. Traditionally, politics in
Colombia has been dominated by a two-party system. Lately the election of independent
candidates has led to a new trend allowing for diversity in Congress. Gubernatorial elections are
also held every four years, alternating with the presidential elections. Gubernatorial elections will
take place in May 2013 and the next presidential election will take place in May 2015

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 Important regulations:
Colombia has put in place a very aggressive tax structure for new investments. Some of the
most important are the following:
 Free Trade Zones, which allow up to 50% deductions on income tax allowing local sales
and access to other Latin-American markets.
 Tax exemptions on tourism developments and agricultural projects of long-term yield.
 125% income tax deduction for investments in Research and Development.
 200% income tax deduction for employment of disabled personnel.
o Significant trade policies:
Trade Policy falls under the jurisdiction of the Ministry of Commerce, Industry and Tourism
through the Superior Council of International Trade, which presents the government policy
recommendations related to international trade, transport, customs, export promotion, dumping,
and foreign direct investment.
o Current trade agreements:
Colombia has been actively diversifying its international trade. It already has Free Trade
Agreements with the United States, Peru, Ecuador, Bolivia, Mercosur (Argentina, Uruguay
Paraguay and Brazil), Chile, Mexico, Honduras Guatemala, El Salvador, Norway, Iceland, and
the Caribbean community (CARICOM); has signed a Free Trade Agreement with Russia that
has yet to be implemented; and is currently negotiating Trade agreements with Korea, Panama,
Turkey, Costa Rica, Israel, and Japan.
o Foreign Direct Investment
In the 1990s the Colombian government recognized foreign investment as a source of financial
resources capable of generating employment, increasing internal savings, transferring
technology and opening access in foreign markets to Colombian goods and services. Then it
introduced a series of structural changes with the objective to position Colombia as an
interesting, profitable and safe place for business development, commercial activities and
resource investment with foreign capital.
Multiple international agreements (Acuerdos Internacionales de Inversion AIIs) which ensure
respect for the rights of foreign investors and protection of their capital investments have been
signed and ratified. These reforms not only included foreign direct capital investment, but were
extended to shareholders in established Colombian enterprises. Four main principals are key to
the enterprises: Equality of rights offer: Equality to investors, regardless of the size of their
share; universality of application to all investor, and sectors of the economy; automatic,
Automatic implementation, with no requirement for registration; and Stability, ensuring that the
legal framework for repatriation of profits will remain in place for a reasonably long period.

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As for Canadians, the provisions in the Canada-Colombia Free Trade Agreement include:
National treatment, that is, Canadian investors are at the same playing level; most favored
nation treatment, which extends provisions on other previous multilateral agreements;
expropriation protection, limiting the needs for expropriation only when public utility is justified,
and guaranteeing prompt payment at market value; compensation for losses in case of war or
civil unrest; free transfer of profits, dividends, capital gains, contributions to capital, royalties,
management fees, technical assistance fees, proceeds from sales or liquidation and loan
payments. (CCFTA-Chapter 8).

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 Social customs and regional idiosyncrasies:
Colombians are friendly people, courteous and discrete. They tend to be formal in the high
plateau and in the major cities of Bogotá, Bucaramanga, Medellin and Cali, and tend to be less
formal in smaller cities (Manizales, Pereira, and Cúcuta) and in the coastal regions, Santa
Marta, Cartagena, and Barranquilla.
They are proud of their accomplishments and proud to see that Colombia is attracting foreign
investment. Their traditional business partner is the United Sates,
o Business Etiquette
Colombians, although not very formal, appreciate punctuality. Business meetings are regularly
started within five to ten minutes of the set time on the agenda. While the business may start on
time, it does not necessarily start with business matters; a good portion of the meeting will
revolve around getting to know the individuals involved and their respective countries,
Colombians will set the tone of the agenda and will eventually arrive at the important part of the
business meeting. When setting up appointments, try to set them at least two weeks in
advance; nobody likes surprises. Allow some extra time for the meeting, even if the first
exploratory meeting is not successful, and do not expect the meeting to end on time as there
will likely be a coffee break and you will be invited to a “tinto” or “tintico” which is the common
name for a cup of coffee.
Colombians will feel very uncomfortable addressing questions or talking about typical
stereotypes. They detest the drug dealer stereotype, and the fear that Colombia is in a state of
war. Major and medium-size cities are relatively safe, as guerrilla activities are in rural areas,
mostly along the borders with Ecuador, Peru, and Venezuela, and to a small degree in the
lowlands on the Pacific coast.
Avoid by all means talking about the illicit drug trade, human rights violations by the army, or the
perception that Colombia is unsafe, as well as their difficult relationships with neighboring
Venezuela, which supported the FARC, and Ecuador, which broke diplomatic relations over
illegal border crossing by the Colombian army. Such topics will for sure make your welcome
very short.
It is recommended to break the ice by talking about the things that make Colombians proud.
Their coffee is high on the list, although exports of coffee have decreased over the last few
years and Colombian coffee does not command the same brand recognition it once did, it is still
a source of pride. Talk about famous performers such as Sofia Vergara, Shakira, and Juanes
and their music, renowned writers such as Nobel Prize winner Gabriel Garcia Marquez,
affectionately known as “Gabo”, famous painter and sculptor Fernando Botero, or NASCAR
star, Juan Pablo Montoya. Colombians are also proud about their gold and emeralds, and giving
praise to their heritage and wealth will be a “foot in the door” in your future business
relationship.

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Colombians are warm but they are not comfortable with physical contact or touch. A hand shake
is normal, and after some familiarity a hand shake using both hands - one to hold one hand and
the other to hold the forearm - is the closest form of contact in business. No hugs (like the
Mexican “Abrazo”) and no kisses on the cheek to members of the opposite sex.
As for the role of women in business, it will be common to find women in a variety of lines of
work and in positions of power in Colombia. They expect to be treated as equal, but also expect
expressions of chivalry from their male counterparts. Gestures such as opening the door for
them, holding the chair for them to sit down, holding their coats, and offering to pay the
restaurant bill are expected and appreciated by women in business.
If you are planning business meetings in Bogotá or Medellin wear a suit and a tie if you are a
man and business attire if you are a woman. In Cali and other cities where temperatures are
warmer, business people do not wear ties, but dress business casual.
o Language
Spanish is the official language, although there are over 80 Indian dialects spoken in the rural
regions of the country. English is also an official language in the islands of Providencia and San
Andres (Caribbean). In continental Colombia English is spoken by the educated class, primarily
by business owners and top managers. This social English ability may at times be inadequate,
however, for detailed contractual negotiations. It will be tremendously beneficial to conduct your
business transactions and negotiations in Spanish, either through a representative or through a
professional translator. Fortunately, there is a growing Colombian Diaspora in Canada where
talent can be found to carry out exporting activities in Colombia.
For business people who speak Spanish, they should not assume that Colombians use the
informal form of Spanish when addressing business acquaintances. They will use “Usted”
instead of “Tu” and frequently say “Si Señor” (yes, sir) in most cases.
o Concerning regulations related to travel
Canadians do not require visas to visit Colombia; a passport valid for the duration of the visit is
all you need. A visitor’s visa is usually granted for a maximum stay of 90 days although 30 days
is the norm, and the visa is renewable for additional 30-day periods. Work and study activities
require special visas. Always check the country travel advisory of the Canadian government
http://travel.gc.ca when planning your trip
If you plan to travel to the Eastern Plains or the Pacific Lowlands, the Colombian Embassy in
Ottawa recommends vaccination against yellow fever and tetanus. Brazil requires a certificate of
vaccination against yellow fever for those who plan to cross the border by land into Brazil.

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Individuals involved in human rights activities, or planning to travel to restricted zones, will
require special visas. Foreigners participating in local political activities, public rallies, or
demonstrations will face deportation.
It is forbidden to bring arms or drugs into Colombia, and certain types of telecommunication
equipment, power generators, batteries, battery chargers, and/or solar panels for battery
chargers may be subject to further inspection by the army and the ministry of the interior.
Major cities are generally safe; nevertheless, arrange your cab itineraries or hire a driver directly
with the hotel. Do not hail a cab on the street. Gentlemen traveling alone or in groups, beware of
the beautiful girls in bars as they are a preferred instrument for victim attraction used by criminal
organizations involved in kidnapping foreign executives.
When leaving Colombia, there are a few important things to keep in mind. Please be extremely
careful with what you bring back. Illegal drugs and cultural patrimony artifacts are forbidden for
export, and gems (emeralds and gold) require special export permits. And be sure to arrive at
the airport with some money left in your wallet. An exit fee of US$31.00 is payable prior to
boarding. The fee may also be paid in Colombian Pesos.
 Political Risks:
Colombia is slowly migrating from a two-party system to a more open and diverse multiple-party
system, and there is now freedom of the press, freedom of expression, and no censorship on
television and radio.
Canadian investors enjoy protection against expropriation, national treatment and most favored
nation treatment as accorded by the Canada-Colombia Free Trade Agreement now in effect.
The top three credit rating agencies (Moody’s (Baa3 – Stable), Fitch, and S&P (BBB- Positive))
improved the ratings for Colombia to invest, giving the country a good positive forecast of
stability.

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 Economic Trends:
o Growth sectors
Oil and Gas has been one of the leading economic sectors of Colombia, oil and derivatives
being the largest export by classification. Colombia is expected to produce one million barrels
(bpp) per day by the end of 2013 (945,848 bppd in March 2013- Ecopetrol). As a growing
industry, it will require many services both for on-shore and offshore installations including
engineering, procurement, construction, and maintenance.
Mining for Canadians is a mixed blessing. While Canadians hold the largest investment in
mining exploration, in some cases they are perceived as a threat to the environment. Proven
reserves in nickel, gold, silver, platinum, and other base metals, political stability, and a strong
legal framework are key ingredients to seeing that the sector continues to grow and offer
opportunity for investors and exporters of related technologies.
While Colombia has the second largest hydrological resources in South America (64% of the
power generated is from Hydro), a recent drought (El Niño in 1993) forced the government to
look at other sources. Thermoelectric generation from natural gas (27%) is preferred to coal
(5%). Wind, solar and biomass are not economically feasible yet, owing to the low cost of
electricity from hydro and absence of feed-in tariffs.
Agriculture will continue to grow as the population grows; hence, direct imports of agricultural
products that are grown locally (e.g., potatoes) will be highly unlikely due to the low cost of local
produce. On the other hand, technology for increasing yield and efficiency will be required as
farms look to increase their production.
Education, particularly foreign language training, is a growth sector because the growth of the
middle class, combined with more foreign direct investment, has created the need for young
professionals to learn English. Unfortunately for Canadians, most Colombians look to the United
States and England for English language teachers and programs. As long as Colombian
nationals find it easier to obtain a US tourist visa, difficulties in obtaining a Canadian tourist visa
will be a barrier for Canadian institutions looking to sell Canadian programs in Colombia.
o Technological Trends
In 2007, Colombia launched the Libertad I cube satellite, developed by the Universidad Sergio
Arboreta in Bogotá, making Colombia the eighth Latin-American country with a low earth orbit
satellite. This development will continue and it will likely require modern technology in
telecommunications and aerospace technology.

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The “Sparrow Hawk” (Gavilán) developed by Aeroleaver in Colombia with the support of the
Colombian government, is a versatile, low initial and operational cost, multipurpose, single
engine, utility aircraft that incorporates the latest aeronautic developments.
Information Technology: An Ipsos-Napoleon Franco poll in February 2012 (results published by
the Ministerio de las Tecnologías de la Información y las Comunicaciones) revealed a sharp
increase in the level of connectivity in urban areas in Colombia. In cities with more than 200,000
inhabitants, 64% of households had direct access to the Internet; a 17% increase from the same
poll in 2010, and 20% accessed the Internet through Internet cafés. Overall, eight out of ten
Colombians access the Internet spending, on average, 2.6 hours surfing.
In 2012 only 28% indicated not knowing how to operate a computer, down from 41% in 2010,
and only 8% considered cost to be an obstacle.
The poll also showed that 26% use the Internet to access training or education on line, 24% for
job search, and 22% to look for products or services.
Mobile Telephony: The number of users continues to increase. The May 2012 report of the first
quarter of 2012 issued by The Superintendencia de Industria y Commercio shows a total
number of subscribers to six service providers of 51,805,523 in March 2012, compared to
45,526,153 in March 2011, a 13.7% increase. This is an area of continuous opportunity for
equipment and services.
o Infrastructure investment and funding institutions
The new constitution of 1991 allowed private investors participation in the development of
infrastructure projects. Colombia has since then implemented several public-private
partnerships for infrastructure development, opening the door to private investors in the
development of Colombia.
Most significant concessions are in the Transportation Ministry. These concessions involve
5,200 kilometers of road extension with an estimated budget of 9.75 billion of Colombian Pesos
($5,400 Million CAD (note that in Spanish a Billion is 1012
). Expansion of 1,200 km of rail lines
with an investment of $1.4 billion COP; improvements to ports with an expected investment of
$2 billion COP. Improvements to Airports including radar and satellite navigation systems worth
$1 billion COP; River navigation projects worth $1.7 billion COP; and urban transit worth $6.5
Billion COP.
Other areas of infrastructure investment are in the electrical system, with similar initiatives in the
improvement of transmission lines, distribution in rural areas; increase of generation capacity
and smart grid investments, as well as in water treatment installations and environmental
protection.
In addition to the private sector participation, 18% of funding is supplied by the Inter-American
Development Bank for projects including infrastructure, human capital development, education

17. 17
reform, environmental sustainability, human rights, social housing, energy efficiency, renewable
energy, etc.
The World Bank incorporated a service package for Colombia (US$ 315 Millions in 2012 and
US$ 654 Millions in 2012) for Social Prosperity, sustainable growth and increased productivity.
Some of the initiatives include: education access, improved social services, citizen security,
urban development, disaster risk management, environmental management, public sector
efficiency, productivity, and innovation. Total WB lending in FY 2013 is forecasted to be
US$850 million.
 Specific Sectors:
o Energy
Colombia is second to Brazil in hydro-generated power with an installed capacity of 9,321 MW.
The next tier belongs to thermoelectric generation from oil, gas, and coal with an installed
capacity of 4,471 MW; and for the rest bio-diesel, bagasse, diesel, small gas, wind, and other
co-generators represent an installed capacity of 721 MW for a total of 14,423 MW. Colombia
has international connections with Ecuador, Venezuela and Panama. There are 41 generation
companies, nine transmission companies, 29 distributors and 69 retailers registered at the
Comisión de Regulación de Energía y Gas. A free market exists for generation and retail, while
transmission and distributions are well regulated. Electrical energy demand is expected to grow
by an average of 2.9% per year through 2015, and 3.9% through 2020.
Between 1993 and 1997, Ecopetrol built more than 2,000 kilometers of pipelines to bring natural
gas from the producing fields to major urban centers. In 1997 Ecogas was created to continue
building and to manage the distribution network. In 2006 Empresa de Energía de Bogotá bought
the majority of the shares and created Transportadora de Gas del Interior. TGI today has 3,957
kilometers of pipelines. Although the government has granted other concessions, TGI is the
most significant player in the natural gas market.
Empresas Públicas de Medellín is one of the most important utilities in Colombia. Founded in
1955 by the municipality of Medellin, today it is involved in electricity, water, gas, and
telecommunications, and has been expanding its reach internationally in Panama, Central
America, Peru Chile Brazil and Mexico. It built the only wind farm in Colombia in order to
support their sustainability policy, and also because of the complementary benefits that allow
the storage of wind power in hydro dams. Project Jepirachi is a 19.5 MW wind farm,
commissioned in the first quarter of 2004. At Jepirachi there is a sub-station that connects onto
a 110 kV high power line feeding into the national grid of Colombia and represents
approximately 0.7% of the total installed capacity in Colombia.
Other projects in the Guajira region close to Jepirachi are under evaluation. In the absence of a
feed-in tariff program, project viability must rely on the benefits accorded by Law 143 of 2004
which grants preferential access to small power generators with capacity under 20 MW whose

18. 18
production is always dispatched. Jepirachi was developed as a Clean Development Mechanism
(CDM), and as such it received funding from the UN Framework Convention on Climate Change
through the World Bank Community Carbon Fund. At an average price of US$0.025 per KWh,
however, there are few incentives for faster development of wind farms.
As for solar power, there are no major or significant photovoltaic generating stations. With an
estimated 6 MW of installed capacity, these small systems are mostly use in rural areas and for
remote telecommunication stations.
o Seafood
Colombia is a relatively small market for seafood products. Statistics from 2007 (FAO Fisheries)
show that per capita consumption is 5.3 kg/year, compared to a world average of 17.3 kg/year,
and a Latin American average of 9.6 kg/year. It is lower than Venezuela (18.5), Mexico (11.9),
Argentina (7.9) and Brazil (6.5). The highest consumption season is Lent and consumption
peaks during Easter week when prices also rise to their maximum levels.
Colombia has a relatively well-organized fisheries industry regulated by the Ministry of
Agriculture, and it has a fish farming industry that grew by 7.6% between 1995 and 2002. The
industry today farms shrimp, oysters and scallops for export in the Pacific (Cartagena) and
white-legged shrimp, carp, tilapia, trout and red-spotted snapper off the Atlantic (Tumaco) coast.
Research did not show any significant number of cold freshwater farms. Annual production
reached 80,000 tons in 2010 after surpassing the 60,000 ton threshold in 2000.
In 2009 Colombia exported:
 67,794 tons of crustaceans and molluscs, securing a positive trade balance of 59,158
tons, and
 113,107 tons of fresh fish, securing a positive trade balance 45,357 tons.
Opportunities for Canadian exports may lie where the statistics show negative trade balances:
 Canned fish: 102,719 tons
 Dry, salted or smoked fish: 449 tons
 Fish oil: 2,326 tons
 Fish meal: 20,371 tons.
Other fresh fish, crustaceans, and molluscs imported from Ecuador and Peru. Chile, Thailand,
and Vietnam are sources for cold water and white meat fish.
The governmental entity responsible for certifying the safety of seafood products is the INVIMA
(Instituto Nacional de Vigilancia de Medicamentos y Alimentos). During the negotiations of the
Canada-Colombia Free Trade Agreement, Canada secured sanitary access for fresh fish from
the INVIMA; however, aside from lobsters, there are limited opportunities for Canadian salmon,
which is mostly imported from Chile at relatively lower prices and with better maritime shipping
routes.

19. 19
There are 25 processing plants specializing in frozen and canned tuna, prawns, sea snails,
calamari, shrimp, and fresh and frozen trout. These plants are located in Buenaventurta,
Tumaco, Cartagena, Barranquilla, and San Andres.
The distribution points for seafood are the central fish markets or commodity fish markets,
supermarkets, and chain stores (representing more than 50% of retail sales), and in some
instances, producer enterprises have their own selling points and distributors also have their
own retail stores and specialty restaurants.
o Education
The increase in foreign investment in Colombia has increased the need for learning English as a
second language among tertiary education students and professionals. Colombians share a
genuine interest in learning other languages, of which English comes first, French and
Portuguese second and third. There are two main markets for language education in Colombia:
local language schools, which are unregulated but require registration with the Ministry of
Education, and student exchange programs.
Student exchange programs are usually coordinated through partnerships between a local
school in Colombia and a foreign school and exist mostly for private secondary schools and
universities. In this area, Atlantic Canada exporters face strong competition, first from the United
States, which is the most popular destination, followed by Australia, New Zealand, the United
Kingdom, and Canadian schools in Toronto, Montreal and Vancouver. The families of younger
students tend to prefer smaller cities for the exchanges, while more mature students tend to
favor cosmopolitan cities.
Some of the exchanges involve academic studies that follow the official curriculum issued by the
Ministry. In those cases, the Colombian student obtains credits for his or her period of study
abroad. Other types of exchanges involve language instruction only, usually in summer schools
and summer camps.
It is recommended to retain a local representative knowledgeable of the market to search for an
adequate partner for the Canadian school.
While elementary and secondary school is provided by the state, there is a parallel system of
private schools in Colombia. This local education market is also open to foreign institutions. A
foreigner may apply to the Ministry of National Education for accreditation to open a school, or
may purchase an existing operating local school, as there are no restrictions on foreign
ownership of private schools.
Local language schools exist in major cities; Berlitz, Interlingua and Barton Shaw are the most
prominent and popular, with establishments in various cities throughout Colombia.

20. 20
o Higher Education.
There are four types of institutions that provide higher education. They are defined according to
their nature and objectives as: technical professional institutes for professional technicians,
technological institutes, university institutions, and universities. The government allows the
private sector to provide education services at this level but ensures the quality through rigorous
inspection and supervision through a National System of Quality Assurance and accreditation is
managed by the National Council for Accreditation. (www.cna.gov.co)
At college level education (Educación Media Vocacional), the Servicio Nacional de Aprendizaje
(SENA) is the most prominent institution in Colombia. it was founded in 1957 as a partnership
between the unions, the government, and the private sector. Between 2002 and 2010, it
modernized and increased its capacity from 1.1 million students to slightly over 8 million.
The SENA is the leading-edge institution in Colombia in distance and on-line learning; it has
worked closely with industry representatives to anticipate their need for trades, and has looked
for partnerships abroad for resources and student exchanges. Current partnerships exist with
schools and technological institutes in France, Germany, Spain, The Netherlands, Russia,
Israel, Poland, Argentina, Mexico, Chile, Brazil, Venezuela, the United States, Japan, and
Korea. Through these partners, the SENA offers accredited courses and scholarships for
student exchanges.
Opportunities exist for Canadian colleges to establish a cooperation agreement with the SENA.

21. 21
 Resources for Canadian Exporters:
The Canadian Trade Commissioner Service in Bogotá, Colombia:
http://www.tradecommissioner.gc.ca/eng/contact-our-team.jsp?oid=62&cid=711
This link lists the address and contact information for trade commissioners and their
respective portfolios, indicating phone numbers, hours of operation and national holidays
in Colombia.
Export Development Corporation (EDC).
http://www.edc.ca/EN/Pages/default.aspx?kw=export_development_corporation
This site includes guides to exporting, exporting business plan guides, training
resources, webinars, and country profiles assessing their potential risks.
Colombia’s profile may be found at: http://www.edc.ca/EN/Country-
Info/Pages/Colombia.aspx
International Trade Training Resources for Canadians:
http://www.canadabusiness.ca/eng/page/2700//
Economic Assessment of Colombia 2031 by the OECD (Organization for Economic Co-
operation and Development)
http://www.oecd.org/countries/colombia/colombia2013.htm
Government of Canada - Fact Sheet - Colombia:
http://www.canadainternational.gc.ca/colombia-
colombie/bilateral_relations_bilaterales/canada_colombia-
colombie.aspx?menu_id=7&view=d
Canada Colombia Free Trade Agreement:
http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-
acc/colombia-colombie/can-colombia-toc-tdm-can-colombie.aspx?view=d
The Bank Of Nova Scotia has excellent reports on regional economic trends,
commodities and foreign exchange rates:
http://www.scotiabank.com/ca/en/0%2c%2c3112%2c00.html
Global Views: http://www.gbm.scotiabank.com/English/bns_econ/globalviews130328.pdf
Latin American Regional Outlook:
http://www.gbm.scotiabank.com/English/bns_econ/latin.pdf
Foreign Exchange forecasts:
http://www.gbm.scotiabank.com/English/bns_econ/fxout.pdf

22. 22
The World Bank-Colombia Page provides a perspective on projects, economic and
social development:
http://www.worldbank.org/en/country/colombia
The Inter-American Development Bank-Colombia Page presents the country strategy,
lists of events and ongoing and approved projects:
http://www.iadb.org/en/countries/colombia/colombia-and-the-idb,1026.html
On particular Industry sectors:
Energy:
Jepirachi Wind Power Project: “Winds of Change Blow Renewable Energy across Latin
America” by Scientific American; includes slide show:
http://www.scientificamerican.com/article.cfm?id=wind-power-colombia-guajira
Jepirachi Wind Power Project-Crediting Period Renewal Report as a Clean Development
Mechanism at the UN Framework Convention on Climate Change:
http://cdm.unfccc.int/Projects/DB/SGS-UKL1135244574.04
Private Investment in Wind Power in Colombia: The Oxford Institute for Energy Studies,
Oxford University: http://www.oxfordenergy.org/2012/08/private-investment-in-wind-
power-in-colombia
Wind Energy in Colombia: A Framework for Market Entry, World Bank:
http://www.cramton.umd.edu/papers2010-2014/vergara-deep-toba-cramton-leino-wind-
energy-in-colombia.pdf
Education:
The Canadian Trade Commissioner Service recently released a comprehensive market
report on International Education in Colombia; the report is only accessible through
registration in the Trade Commissioner Service or may be requested in writing to: re-
edu-canada@international.gc.ca
United Nations Education, Scientific and Cultural Organization (UNESCO) On-Line materials
on Colombia Higher Education: http://www.unesco.org/new/en/education/resources/unesco-
portal-to-recognized-higher-education-institutions/dynamic-single-view/news/colombia
Tertiary Education in Colombia: The World Bank Country Report:
http://siteresources.worldbank.org/EDUCATION/Resources/278200-1099079877269/547664-
1099079956815/ColombiaLoRes.pdf
Fisheries:

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The Food and Agriculture Organization of the United Nations page includes a detailed report
on the National Aquaculture Sector in Colombia:
http://www.fao.org/fishery/countrysector/naso_colombia/en
Resources Available in Spanish:
Portal del Gobierno de Colombia: This is the access page to the Government of
Colombia. All the ministries in Colombia are listed at the bottom of the page and may be
accessed by clicking on their respective names:
http://www.gobiernoenlinea.gov.co/web/guest
Departamento Administrativo Nacional de Estadistica (DANE) provides up-to-date
statistical information on Colombia: http://www.dane.gov.co/#twoj_fragment1-4
Servicio Nacional de Aprendizaje (SENA): http://www.sena.edu.co
Centro para los servicios de información y asesoramiento sobre la comercialización de
los productos pesqueros de América Latina (INFOPESCA): http://www.infopesca.org
Empresas Públicas de Medellín: http://www.epm.com.co/site
Parque Eólico Jepirachi:
http://www.epm.com.co/site/Home/Institucional/Nuestrasplantas/Energ%C3%ADa/Parqu
eE%C3%B3lico.aspx
Transportadora de Gas Internacional: http://www.tgi.com.co
Grupo de Energía de Bogotá: http://www.grupoenergiadebogota.com
Comisión Reguladora de Energía y Gas (CREG):
http://www.creg.gov.co/html/i_portals/index.php
Consejo Nacional de Acreditación de Colombia: www.cna.gov.co