WT/TPR/M/372
13 August 2018
(18-5078)
Page: 1/56
Trade Policy Review Body
12 and 14 June 2018
TRADE POLICY REVIEW
COLOMBIA
MINUTES OF THE MEETING
Chairperson: H.E. Mr Eloi Laourou (Benin)
CONTENTS
1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 2
2 OPENING STATEMENT BY THE REPRESENTATIVE OF COLOMBIA .................................. 4
3 STATEMENT BY THE DISCUSSANT .............................................................................. 10
4 STATEMENTS BY MEMBERS ........................................................................................ 12
5 REPLIES BY THE REPRESENTATIVE OF COLOMBIA AND ADDITIONAL
COMMENTS..................................................................................................................... 48
6 CONCLUDING REMARKS BY THE CHAIRPERSON ......................................................... 55
Note: Advance written questions and additional questions by WTO Members, and the replies
provided by Colombia are reproduced in document WT/TPR/M/372/Add.1 and will be available
online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.
WT/TPR/M/372 • Colombia
-21 INTRODUCTORY REMARKS BY THE CHAIRPERSON
1.1. The fifth Trade Policy Review of Colombia was held on 12 and 14 June 2018. The
Chairperson, H.E. Mr Eloi Laourou (Benin), welcomed the delegation of Colombia, headed by
Mrs. Olga Lucía Lozano, Vice Minister of Foreign Trade; the rest of the delegation; and the
discussant, H.E. Ambassador José Luis Cancela (Uruguay).
1.2. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of
the procedures for the meeting. The report by Colombia was contained in document
WT/TPR/G/372 and that of the WTO Secretariat in WT/TPR/S/372.
1.3. Questions by the following delegations had been submitted in writing before the deadline:
Mexico; Canada; Singapore; Switzerland; Chile; Australia; Costa Rica; China; Indonesia; United
States; Dominican Republic; Japan; European Union; Norway; Argentina; and Trinidad and
Tobago. The following delegations submitted written questions after the deadline: Brazil;
New Zealand; Thailand; Ecuador; Honduras; Guatemala; Korea, Republic of; Turkey; El Salvador;
and Malaysia.
1.4. During its previous Review in 2012, Members had praised Colombia for weathering
successfully the global financial crisis through the use of anticyclical policies. Members had
commended Colombia for maintaining open trade and investment regimes and for using trade
policy to promote sustainable growth. Several Members had welcomed Colombia's success in
reducing poverty. The measures taken to facilitate trade, including the creation of a single window
had been noted. Colombia was encouraged to continue in the path of trade facilitation, to
reconsider the use of indicative prices for customs valuation, as well as to step up efforts to
comply with its WTO notification obligations and to improve some aspects of the implementation of
its SPS and technical regulations regime.
1.5. At the time of the previous Review, Members had also commended Colombia for the
unilateral tariff reduction it had implemented. However, they had expressed concerns with respect
to the use of import restrictions, the import licensing regime, some aspects relating to customs
valuation, and the rationale for some SPS measures. Other issues of interest to Members at the
time of the previous Review in 2012 had included: incentives; IPR law and enforcement;
government procurement and GPA participation; and sectoral issues relating to services and
reforms in agriculture. The advance written questions for this TPR covered many of the same
issues.
1.6. Turning to the current review period, as noted in the Secretariat's report, Colombia's
economic growth had slowed down somewhat in recent years, prompting the authorities to put in
place a programme of reforms, which included tax incentives, tax and import tariff reductions,
changes in the investment regime, and investment in infrastructure.
1.7. Colombia's trade and investment regime had experienced a large number of changes since
the last Review, in the light of the implementation of Colombia's trade agreements with the United
States, the European Union, and through its participation to the Pacific Alliance.
1.8. Colombia had taken several trade facilitation measures over the last six years, including the
introduction of a risk management system, the move to an automated clearance process, the
introduction of Authorized Economic Operators, the use of advance rulings and the establishment
of a Single Window for exports and imports. Colombia had a relatively open trade regime and
tariffs were relatively low, with an average MFN rate of 7.1% in 2017; some 50% of tariff lines
were zero-rated. Few non-tariff barriers were applied, with the exception of import licensing which
was widely used. Tariffs on certain textile and clothing products could be raised when valued below
a reference price. Colombia continued to use the Andean Price Band System for 161 tariff
subheadings. It also implemented a number of domestic support programmes in agriculture.
1.9. Colombia was an active participant in the multilateral trading system: it had participated in
the ITA negotiations and had accepted the amendment to the TRIPS Agreement. However, it had
yet to ratify the Trade Facilitation Agreement (TFA). Colombia had also been active in the
negotiation of preferential trade agreements, which had become an increasingly important element
of its trade policy.
WT/TPR/M/372 • Colombia
-31.10. The Chairperson drew Members' attention to some other issues they raised in their advance
written questions for this TPR. These included: customs procedures; new antidumping regulations;
incentives; merger notification and competition policy reform; protection and enforcement of IPRs;
development of renewable energy; cross border trade in insurance services; and market access
conditions in telecommunications and transport.
1.11. This meeting was to be a good opportunity for Members to discuss in greater detail issues of
interest to them and of systemic importance to the multilateral trading system. The Chairperson
was looking forward to a productive exchange of views.
WT/TPR/M/372 • Colombia
-42 OPENING STATEMENT BY THE REPRESENTATIVE OF COLOMBIA (MRS. OLGA LUCÍA
LOZANO)
2.1. Mr Chairperson, Ambassador Laourou, in your capacity as Chairperson of the Trade Policy
Review Body, please accept our warm greetings, which we likewise extend to
Ambassador José Luis Cancela, from the Republic of Uruguay, who is serving as the Discussant in
our fifth trade policy review.
2.2. My thanks go to the Secretariat for preparing the report and for its constant and dedicated
work in coordinating and lending support to Colombia's technical group. We also thank
WTO Members for attending this review and for their interest in learning more about Colombia, as
evidenced by the 370 questions we received from 26 Members concerning various aspects of our
trade policy.
2.3. It is a great honour for me, as Vice-Minister of Foreign Trade, to lead the delegation which
today will share, before this very Body, Colombia's most important economic and trade
developments since 2012, at a time when the multilateral trading system is of particular relevance
for a developing country such as Colombia.
2.4. Colombia has had occasion in various forums to assert that, now more than ever, the
multilateral system needs to be strong and to provide certainty to economic operators. Trade
liberalization and the elimination of distortions contribute to economic growth, job creation, and
increased participation in value chains. In Colombia's case in particular, this should enable us to
consolidate the benefits ensuing from the peace process.
2.5. The fifth review of our trade policies is a valuable exercise that enables us to report to
Members on the trend in our main economic variables and on the implementation of programmes
as well as general and sectoral measures relating to Colombia's trade policy over the
period 2012-2018.
Developments in Colombia since its fourth trade policy review
2.6. Exactly six years ago, in this same context, we told you how Colombia had overcome the
international financial crisis and had resumed the path to growth and stability. Many events have
occurred over the past six years, two of which were of signal importance, namely the signing of
the Peace Agreement after more than 50 years of conflict and Colombia's recent entry into the
OECD as the latter's 37th member.
Economic environment
2.7. Over much of the review period, the Colombian Government, having drawn up the
National Development Plan "All together for a new country", addressed the task of building a
peaceful, equitable and educated Colombia, aligned with international best practice and standards,
under an approach based on long-term planning in line with the country's sustainable development
goals.
2.8. In addition to the three core pillars (Peace, Equity and Education), the Plan incorporated a
number of cross-cutting strategies, that is, competitiveness and strategic infrastructure; social
mobility; rural development; security, justice and democracy for peace-building; good
governance; and green growth. It also included regional strategies to address the priorities of the
six areas into which the country has been divided with a view to promoting economic
development.
2.9. As is common knowledge, the key outcome was the signing of the Peace Agreement in
November 2016, following arduous negotiations, thanks to the determination of the
President of the Republic and the cooperation of many Colombian citizens. I would like to take this
opportunity to thank the international community and the governments of various countries
attending this review meeting today.
2.10. In recent years, Colombia has been facing significant challenges in building peace. The
Colombian economy has received international recognition for its stability and growth. The country
WT/TPR/M/372 • Colombia
-5retained a good position in World Bank and IDB rankings during the review period as an open,
competitive economy with a suitable environment for doing business in Latin America and the
Caribbean.
2.11. Over the six-year period under review, Colombia continued to implement an orderly
macroeconomic policy that responded effectively to the new international environment. As a result,
the Colombian economy was able to maintain a growth rate above the average for Latin America
and the Caribbean, despite the fall in commodity prices to their lowest level since 2004.
2.12. As regards the economic environment, Colombia achieved the following:

an annual average growth rate of 3.3% between 2012 and 2017;

a narrowing of the deficit in the balance-of-payments current account from 6.4% to only
3.3% between 2015 and 2017;

a reduction in multidimensional poverty from 30.4% in 2010 to 17.8% in 2016;

the creation of 3.5 million new jobs, thus lowering the unemployment rate to a single-digit
figure; and

a five percentage point reduction in inflation.
2.13. The risk rating agencies maintained Colombia's investment-grade sovereign debt credit
rating, generating a good level of confidence among investors. As part of the policy to attract
foreign direct investment (FDI), the Government introduced measures to increase business
interest in Colombia.
2.14. The results are clear in that FDI recorded in 2017 exceeded US$14,500 million, or 4.8%
more than in the prior year, and accounted for 4.7% of GDP. Another noteworthy point was the
broad diversification in the sectors receiving FDI. In 2010, only 23.5% of inflows had gone to
sectors other than the extractive industries, but this trend was reversed as the percentage
increased in 2017 to 70% in sectors such as telecommunications, transport, storage, and
manufactures.
2.15. Policies to attract FDI included a regulation issued in 2017 to modernize the foreign
investment regime and increase the competitiveness of the Colombian market.
2.16. In addition to improving its performance in attracting FDI, Colombia reinforced its position
as a source of investment in other countries, chiefly the Pacific Alliance countries and the
United States. During the review period, the process aimed at internationalizing domestic
enterprises led to the consolidation of Colombia's status as the region's fourth largest exporter of
capital, with average outflows of US$3.8 billion. There was a six-fold increase in total investment
by Colombian businesses abroad between 2005 and 2016.
2.17. After a period of 18 years, Colombia's Central Bank recently updated the country's foreign
exchange regime in order to bring it into line with the new global and domestic realities,
addressing new developments and providing for risk mitigation.
2.18. As regards the external sector, Colombia continued to implement strategies to diversify
exports as part of its commitment to economic growth and more extensive use of trade
agreements.
2.19. Thanks to initiatives that included boosting export supply, implementing processes to ensure
compliance with sanitary requirements, and providing support for domestic enterprises and foreign
buyers by organizing business round tables and drawing up trade agendas, progress was made
towards the export diversification goal.
2.20. By end-2017, exports of non-mining/energy goods had risen by 5.3% and total exports by
19% compared to 2016. Non-mining/energy exports remain on an upward trend, having recorded
WT/TPR/M/372 • Colombia
-612.5% growth between January and April 2018. This performance was further enhanced by a
12% expansion in services exports between 2014 and 2016.
Peace approach spells better opportunities for our country
2.21. The implementation of the peace accords opens up new opportunities for the production
sector, investment and foreign trade. This concerns the agricultural sector in particular, Colombia
having defined its agricultural boundaries as encompassing 40 million hectares suitable for
agro-forestry exploitation. This confirms the FAO's assessment that Colombia is poised to become
one of the world's seven agricultural breadbaskets. Colombia's potential is considerable, and it is
currently using only about 15% of that potential.
2.22. In order to take advantage of this situation, we have designed various instruments to
promote and consolidate scattered rural areas. Efforts will be targeted at the most affected areas,
encompassing 344 municipalities, in order to narrow the development gap and integrate the
population victim of the conflict by granting favourable tax conditions over a period of ten years to
production-oriented enterprises and businesses in these areas.
2.23. Moreover, the Congress has adopted the Law on Zones of Interest for Rural, Economic and
Social Development, covering areas that can be used for agriculture, livestock farming, forestry
and aquaculture, where the State provides support for competitiveness, regional economic growth,
social development and environmental sustainability.
2.24. The gains that we hope will arise from the new peace scenario also entail challenges to be
overcome in terms of competitiveness, internationalization of the economy and integration in
global value chains. Colombia is aware that successfully addressing these challenges will open up
real possibilities of achieving high growth rates, generating quality employment, and reducing
poverty.
2.25. In order to promote productivity through business competitiveness and overcome the lags in
capital stock, especially in physical transport infrastructure, in 2016 Colombia adopted the
National Productive Development Policy, comprising a set of sectoral and cross-cutting tools to
address market, governance and structural failings that impede growth in productivity or make it
difficult to upgrade and modernize the Colombian production system.
Trade policy
2.26. As emphasized in our Government report, increased internationalization of the economy and
transformation of domestic production are key, in Colombia's view, to achieving greater economic
development and reducing poverty.
2.27. In pursuing this objective during the review period, Colombia successfully developed and
implemented its global economic integration strategy, seeking to increase trade and investment
flows within a transparent, predictable and inclusive multilateral system, complemented by
regional and bilateral efforts.
2.28. We have strengthened our integration with the Latin American and Caribbean region, with
the Andean Community and the Pacific Alliance serving as our core trade policy mechanisms.
During the review period, this policy was enhanced by the trade rapprochement with Europe and
Asia, following the negotiation and entry into force of the trade agreements with the
European Union, the countries of the European Free Trade Association and South Korea, in
addition to the entry into effect of the Agreement with Costa Rica and the Pacific Alliance in 2016,
and the deepening of our Agreement with MERCOSUR in 2017. We also signed agreements with
Panama and Israel, which are pending implementation, and were involved in negotiations which
we hope to complete shortly with Japan and Turkey.
2.29. Special mention should be made of the Pacific Alliance negotiations with four candidate
associate members (Australia, Canada, New Zealand and Singapore), as a platform for integration
into the Asia-Pacific region.
WT/TPR/M/372 • Colombia
-72.30. Thus, Colombia currently has 16 trade agreements in force with 62 countries numbering
more than 1.5 billion consumers and accounting for 58% of global GDP.
2.31. Colombia has also made substantial improvements to its foreign investment facilitation,
promotion and protection policy. During the period under review, we negotiated and reviewed the
scope of several international investment agreements in order to provide for a clearer focus to
continue strengthening the investment climate, while preserving room for robust regulatory action
by the State. The agreements included those reached with France and the United Arab Emirates,
and a renewal of Colombia's Agreement with Spain. Joint interpretative statements were drawn up
to adjust essential points in the Agreements with Canada and India.
Colombia and the multilateral trading system
2.32. This is a particularly valuable opportunity to emphasize the importance of the rules-based
multilateral trading system. Compliance with the WTO rules and the pursuit of a more transparent
economic and trade environment is the way to increase the resilience of a system that has lately
been under threat.
2.33. Colombia's trade policy focuses on integration into the global market for goods and services.
We will now highlight the key topics of interest. Colombia considers it essential that the
multilateral trade negotiations should lead to outcomes in agriculture that will level the playing
field and remove the distortions in agricultural trade.
2.34. Tangible outcomes in the agriculture negotiations will be decisive for delivering the benefits
of the peace process.
2.35. We have been very active in the negotiations on harmful subsidies that contribute to illegal,
unreported and unregulated fishing, overfishing and overcapacity, in line with Sustainable
Development Goal 14.6. Colombia has been leading the discussion on the Sustainable
Development Goals; in this connection, support for the negotiations on fisheries subsidies is
crucial.
2.36. We are interested in forging ahead with important topics such as e-commerce and domestic
regulation in services, on which we have worked with other Members to create negotiating
frameworks for the establishment of multilateral rules. Moreover, we are involved in initiatives
being explored in other areas, such as those concerning micro, small and medium enterprises,
investment facilitation, and trade and women's empowerment.
2.37. For Colombia, illicit trading and customs fraud are a critical topic that cuts across all the
multilateral issues. Such practices have an impact on trade in goods since they involve smuggling
and money laundering and are used to finance criminal activities. They also extend to trade in
services, leading to the violation of intellectual property laws, and are not specifically addressed at
the WTO. We think that the problem should be reviewed jointly through an open dialogue among
Members.
2.38. Colombia has made a few contributions in this respect by organizing two working sessions at
the 2015 and 2017 Public Forums, and is keen to see the issue forming part of the WTO agenda,
as the Minister of Trade, Industry and Tourism said at the Eleventh Ministerial Conference.
2.39. Colombia has suffered the effects of this scourge and is therefore committed to working
hand in hand with other interested Members and organizations to identify actions that can capture
its characteristics and complex workings. Moreover, the Lawfulness and Fight against Smuggling
and Customs Fraud strategy has been strengthened, in coordination with the private sector,
Colombian government agencies, and international customs and intelligence authorities.
2.40. The issue is being addressed from various angles in organizations such as the WCO, the
OECD and some private agencies. The WTO cannot remain on the sidelines of this debate. We
reiterate our interest in continuing to work on identifying international cooperation strategies and
actions to address the collateral effects of this problem resulting from globalization.
WT/TPR/M/372 • Colombia
-8Cross-cutting, sectoral and regulatory policies
2.41. Sectoral policies include the implementation of the Colombia Siembra (Colombia Sows) Plan,
aimed at boosting agricultural supply in order to rehabilitate post-conflict rural areas, guarantee
food security and increase agro-industry exports. The programme also seeks to improve
producers' incomes and strengthen technological development to encourage people to return to
the countryside and rehabilitate major areas that used to be occupied by groups operating outside
the law.
2.42. This has led to an expansion of land under crops from 25,000 hectares to over 1,200,000
newly planted hectares every year over the past three years.
2.43. Aware of the role of telecommunications in the digital age, Colombia has made significant
progress since the previous review, strengthening the institutional framework by giving increased
autonomy to the Communications Regulatory Commission, and promoting greater competition and
better mobile services coverage, among other things.
2.44. The results are encouraging, with 30.3 million broadband Internet connections in 2018
compared to 2.6 million in 2010. We also have more than 62 million mobile phone lines, and, as
regards computer coverage in basic education, the number of children per computer fell from 24 to
four in the same period.
2.45. Another services sector worthy of note is tourism, where the number of foreign visitors
entering the country rose by 150% between 2010 and 2017. Earnings from passenger travel and
transport increased by 68% over those same years.
2.46. An equally major development to be shared with Members of this Organization is the
progress made with trade facilitation, especially the results being achieved with the new customs
regulations, the strengthening of the Single Window for Foreign Trade (VUCE), simultaneous
inspection systems, non-intrusive inspection, the automation of foreign trade operations, and the
strengthening of risk management systems in order to avoid delays and break the bottlenecks in
import, export and transit processes.
2.47. In this connection, we would like to inform Members that the internal process for ratifying
the WTO Trade Facilitation Agreement will be completed before end-2018, in accordance with
Colombia's established procedures for all international agreements.
2.48. Interest was expressed by 24 Members, which submitted a total of 357 questions, in our
overall trade policies and practices by measure, as well as the sectoral policies reflected in the
reports.
2.49. Colombia is one of the first Members to have used the electronic question-and-answer
system, which proved most useful. We received 81 questions from eight countries via the system,
and we urge Members to make use of this tool.
2.50. A strong and solid World Trade Organization that actively addresses the problems affecting
trade and seeks ways and means to solve them, is essential for us all. Colombia has been, and will
continue to be, a staunch supporter and promoter of the multilateral trading system and the WTO.
2.51. We have been affected by the rise in trade tensions and are concerned about the risk of
escalation. We invite Members to refrain from applying restrictive measures and to comply with
the rules established in the multilateral framework. We cannot place the global governance system
at risk in order to solve short-term problems.
2.52. We hope that this fifth trade policy review will give Members a more comprehensive picture
and a better understanding of our policies and measures.
2.53. The period under review also saw our accession to the OECD. This was a truly
transformative process that led to substantial reforms in order to bring Colombia's legislation and
policy into line with the highest international standards.
WT/TPR/M/372 • Colombia
-92.54. We are aware that the reforms introduced with a view to joining the OECD, our active
participation in the multilateral negotiations and new areas of interest, and our compliance with
WTO commitments are part of an ongoing process that needs to be kept up if we are to achieve
international best practice standards and more extensive integration into a globalized world.
2.55. Mr Chairperson, our policies are open to evaluation by all Members. Ambassadors,
distinguished delegates, we are ready to hear and benefit from your comments. Thank you.
WT/TPR/M/372 • Colombia
- 10 3 STATEMENT BY THE DISCUSSANT
3.1. First of all, I would like to say what a great honour it is for me to have been appointed
Discussant for Colombia's fifth trade policy review, covering the period 2012-2017.
3.2. I also wish to congratulate the people and Government of Colombia on the country's entry
into the OECD on 30 May of this year. This bears witness to the wide-ranging programme of
reforms introduced in order to modernize the Colombian economy by making it more inclusive,
efficient and competitive. The programme involves consolidating a number of processes already
analysed in the 2012 trade policy review and the launching of new initiatives, such as the National
Development Plan "All together for a new country", which, as indicated in Colombia's Government
report, covers part of the current review period, from 2014 to 2018, and addresses the task of
building a peaceful, equitable, educated Colombia, among other measures adopted by the
Colombian authorities.
3.3. Over the five-year period under review and as indicated in the Secretariat report, the
Colombian economy continued to grow at an average annual rate of 3.3% despite a decline in
exports, particularly oil and other raw materials, and a slowdown in domestic demand. The
adoption of a Fiscal Rule made it easier to lessen the impact of the external shock. As stated
earlier, a wide-ranging reform agenda, including tax rebates, fiscal incentives, changes to the
investment regime and infrastructure improvements, was implemented in order to return to the
higher growth rates recorded at the beginning of the period.
3.4. Another point to be highlighted is the decrease in poverty, although figures remain high and
further efforts will be required to achieve a steeper decline. Poverty levels fell to 28% in 2016
compared to the 34% recorded in 2011.
3.5. Unemployment, for its part, reached one of its historical lows at 9.4% in 2017, and inflation
stood at 3.99% in that same year.
3.6. While it is obvious that a country's economic performance cannot be analysed without taking
account of the context in which it evolves, this is particularly true of Colombia in the years under
review. The Peace Agreement putting an end to the American continent's longest-running conflict,
which lasted for 50 years and claimed more than 8 million victims, was signed in November 2016.
As a Uruguayan and Latin American citizen, I am proud to say that this was a historical event that
transcended national borders and became a regional and international milestone. To express this
in words more suited to the subject matter at hand, "Colombia is beginning to reap the dividends
of peace".
3.7. Although market and product diversification remains a significant challenge for the country,
progress was made on both scores during the review period. As can be seen from the Secretariat
report, mining exports, chiefly oil and coal, accounted for almost 54% of the total in 2017,
compared to 66% in 2012. The share of agriculture increased from 11% in 2012 to 20.7% in
2017. It should also be emphasized that the authorities have been seeking to promote exports of
services and non-traditional manufactures.
3.8. Concerning markets, the review period saw the entry into force of five new trade agreements,
with the Pacific Alliance, Costa Rica, the Republic of Korea, the European Union and the United
States. Preferential agreements were signed with Israel and Panama, and negotiations with Japan
and Turkey are under way. In the Pacific Alliance framework, free trade agreements are being
negotiated with Australia, Canada, New Zealand and Singapore.
3.9. Colombia has introduced major changes concerning, among other things, its customs
legislation, the periodic revision of technical regulations, intellectual property and investment
facilitation, as well as initiatives and actions aimed at capitalizing on areas for rural and tourism
development. Tourism is unquestionably a peace dividend.
3.10. Moreover, as stated in its Government report, Colombia has continued to provide support
for micro, small and medium enterprises (MSMEs), with the creation in 2017 of
Colombia Productiva (Productive Colombia), a programme offering comprehensive assistance to
MSMEs (around 400 businesses), with support from the World Bank and the Andean Development
WT/TPR/M/372 • Colombia
- 11 Corporation. The programme is being held up as an example to other countries in the region.
Colombia has a strong institutional support network for MSMEs, comprising the National Support
System and a legal framework defined by the MSME Law of 2000 and a number of subsequent,
amending and supplementary regulations, as well as various decrees, which, according to the
Secretariat report, provide a set of tools and instruments in support of such enterprises.
3.11. Initial estimates under the 2017 Action Plan, drawn up by the National Support System for
MSMEs, were for 368,063 enterprises to receive approximately Col$17,890 million
(some US$6.4 million), including both refundable and non-refundable resources. In the
period 2012-2016, credit operations for MSMEs totaled some US$680 million in favour of
114,922 enterprises. For its part, in 2016 FINAGRO disbursed around US$4.6 million in loans for
600,752 MSMEs. Various state funds also put up guarantees running into the millions over the
review period. Lastly, two points worthy of mention are the participation of MSMEs in the
secondary securities market to generate financing, and the use of the government procurement
regime to promote MSME participation in procurement procedures by applying preference margins
and criteria for breaking tie bids.
3.12. In the period 2012-2017, Colombia continued to implement the Structural Tariff Reform,
with an average MFN applied tariff rate of 7.1% in 2017. However, it should be pointed out that
the average tariff for agricultural products is about three times higher than the average tariff for
non-agricultural products, the highest average duties being applied to dairy products, clothing, and
animals and animal products, with average tariffs of 55.1%, 40% and 20.3%, respectively. It
would appear advisable to pursue the tariff reduction process, providing, in particular, for greater
liberalization of agricultural trade.
3.13. We also invite Colombia to continue streamlining its regulatory regime. Particular mention
should be made of the import licensing system, which still covers a large number of tariff lines and
maintains the existence of domestic production criterion to evaluate and decide on non-automatic
import licenses.
3.14. Lastly, I encourage Colombia to proceed with the prompt ratification of the
Trade Facilitation Agreement, which, according to available information, is before the
Constitutional Court for consideration, meaning that it appears to have already reached the final
stage of the relevant constitutional procedures.
3.15. I would like to conclude by highlighting Colombia's commitment to the multilateral trading
system, as stated in the section of the Government report dealing with the multilateral
environment and evidenced by the country's firm support for the World Trade Organization, its
efforts to help overcome the current impasse facing the dispute settlement system's
Appellate Body, its active engagement in the various Agreements and its open, inclusive readiness
to negotiate, as demonstrated daily by the Colombian delegation to this Organization and the hard
work done by Ambassador Juan Carlos González and his staff. Thank you.
WT/TPR/M/372 • Colombia
- 12 4 STATEMENTS BY MEMBERS
MEXICO
4.1. I would like to take this opportunity to acknowledge the active work done by the team at the
Colombian Mission, under the distinguished leadership of Ambassador Juan Carlos González, in
taking a constructive part in the WTO negotiations on topics such as fisheries subsidies,
agriculture, investment facilitation and e-commerce, and by assuming the chairmanships, during
the review period, of the Trade Policy Review Body, the Council for Trade in Services in Special
Session and the Working Party on State Trading Enterprises.
4.2. We also welcome the successful conclusion of the negotiations with the Revolutionary Armed
Forces of Colombia and the ensuing Peace Agreement, which put an end to 50 years of conflict.
According to official estimates, this could lead to average additional GDP growth of almost 2% over
the next ten years.
4.3. Another positive achievement for which I would like to congratulate Colombia is the country's
recent accession to the Organisation for Economic Co-operation and Development (OECD), on
30 May of this year. This will undoubtedly help Colombia pursue its path towards greater inclusion
in the global economy, as it brings its standards into line with international best practice.
4.4. Colombia is one of Mexico's leading trading partners, not only at the WTO but also under
regional agreements, such as the Latin American Integration Association (LAIA) and the
Pacific Alliance, to which both countries belong.
4.5. Mexico and Colombia are deeply committed to maintaining a strong bilateral relationship. This
is evidenced by the latest visit of President Enrique Peña Nieto to Colombia in October 2016,
marked by the establishment of nine cooperation agreements and announcing the creation of a
Strategic Council, which now governs bilateral relations in matters relating to security, trade,
migration, technical cooperation and culture.
4.6. As regards Colombia's trade policies, while the extractive sector's share of total exports has
declined, it still remains considerable (50%), entailing major risks given the volatility of
commodity prices.
4.7. We are pleased to note the timely implementation of the Colombia Repunta (Colombia
Bounces Back) programme in response to the fall in international oil prices, which made it possible
to mitigate the adverse impact of this decline on the economy.
4.8. Despite these commendable achievements, our private sector has raised serious concerns
about two measures in particular:

Colombia has had a "scrapping" programme for several years now, which, as already
mentioned in the context of the country's accession to the OECD, is a measure that distorts
the market. We therefore welcome the abolition of the one-for-one scheme as of
31 December 2018.

In the Mexican industry's opinion, the "temporary registration system", aimed at gathering
information on the size of the freight vehicle fleet, is a costly and bureaucratic measure. We
are grateful for the information provided, which will be very useful for our authorities and
private sector.
4.9. Conversely, we acknowledge Colombia's following achievements in the field of information
and communications technology:

the absence of restrictions on foreign holdings in companies in the telecommunication
sector;

the reduction in access or interconnection charges, with the caller now paying the access
charge, and the regulation of tariffs for the national roaming service;
WT/TPR/M/372 • Colombia
- 13 
the adoption of measures to increase competition among mobile service operators in the
market, including automatic national roaming, no blocking of bands, equalization of on-net
and off-net charges, all of which have lowered user rates.
4.10. We also congratulate Colombia for implementing the Tourism Sector Plan to Build Peace
2014-2018, taking steps to ensure better air connections and seeking to promote and diversify the
tourism offering, which is beginning to translate into increased income for the sector and places
Colombia among the ten most tourist-friendly destinations in Latin America, according to the
World Economic Forum Report for 2017.
4.11. To conclude, we thank Colombia for its replies to our delegation's questions and wish it
every success in this review.
CANADA
4.12. If you allow me, I would first like to take a minute to recognize Colombia's remarkable
achievement since its last review in 2012, namely the historic peace agreement it signed in 2016
with the Revolutionary Armed Forces of Colombia (FARC). This agreement not only brought to an
end the last major internal armed conflict in our hemisphere but it carried with it the prospect of
lasting peace in Colombia. Peace that can provide the foundation upon which a safer and more
prosperous Colombia can be built.
4.13. Since its last Trade Policy Review in 2012, Colombia has maintained its commitment to the
multilateral trading system and trade liberalization. For instance, at the last Ministerial Conference,
Colombia, like Canada, has signed on to the new initiatives on electronic commerce, investment
facilitation and MSMEs. I would also like to commend Colombia for being among the 121 Members,
including Canada, that have endorsed the Buenos Aires Declaration on Women and Trade.
4.14. Colombia also has ambitious aspirations for increased global responsibility and strong
governance standards. In this respect, we would like to congratulate Colombia for the signature on
an accession agreement on 30 May to become a member of the Organization for Economic
Cooperation and Development (OECD).
4.15. I would also like to take this opportunity to highlight the productive relationship that exists
between Canada and Colombia. For instance, Canada is proud to support two initiatives of the
Global Alliance for Trade Facilitation in Colombia, namely the establishment of a center for trade
facilitation and good practices and the implementation of a risk management system for
Colombia's National Food and Drug Surveillance Institute. We are convinced that these initiatives
will benefit Colombia.
4.16. However, doing business in Colombia is not without challenges and Canada would like to
identify 2 main areas today that merit special attention in Colombia: the regulatory and legal
environment for businesses and the existence of a discriminatory entry tax that unfarily targest
Canadians.
4.17. Up to this day, investors in Colombia remain too often confronted to counter-productive
regulatory and fiscal frameworks, as well as legal and regulatory uncertainty. Although some
progress has been noted in the current review cycle, further improvements have been hampered
by the frequent introduction of amendments and their lengthy implementation.
4.18. Companies often face other challenges related to security and the weak rule of law,
particularly in remote areas that have been at the epicenter of the armed conflict and where
private investments are expected to give impetus to the peace process. A successful peace
implementation in these areas will hinge on rural and economic development across various
sectors, including infrastructure, education and social services, and security. In this delicate
context, we encourage Colombia to make further efforts to ensure a more efficient, predictable
and stable climate for investors.
4.19. I would also like to shed some light on the second area I mentioned earlier, a concern that
is very specific to Canada and that is frequently raised as an irritant by Canadian business people
in relation to cross-border movements. Since December 2014, and in retaliation for the
WT/TPR/M/372 • Colombia
- 14 introduction by Canada of visa biometric data requirements, Colombia has imposed a special entry
tax which applies solely to Canadian visitors upon their entry. We strongly believe that this
measure is not only discriminatory as it only targets Canadians and no other major partners with
similar biometric requirements such as the United States, the United Kingdom, and Australia, but
that it also hurts Colombia's business and tourism industry. We also question the alleged
reciprocity of the measures, as this entry tax is imposed every time a Canadian enters Colombia,
where, in contrast, Canadian biometric fees are, in most cases, payable once for multiple entries
and can be valid for up to ten years. We respectfully ask Colombia to lift this discriminatory and
unfair entry tax on Canadian visitors.
4.20. In closing, I would like to emphasize the fact that sustainable and inclusive economic growth
in Colombia must be accompanied by longer term, structural economic and financial reforms that
can enhance competitiveness, foster diversification, create a more stable and predictable
investment environment, and promote greater inclusivity of rural communities, marginalized
Indigenous and Afro-Colombian populations, and women. To promote economic prosperity for all
Colombians, further efforts must also be made in the area of labour, including ensuring the
enforcement of labour laws, protecting the freedom of association and collective bargaining and
tackling violence against union leaders. We note in this respect our joint commitment to the
ambitious objectives of the Labour Chapter of the Free Trade Agreement between Canada and
Colombia.
4.21. While we remain confident in its resilient economy, we encourage Colombia to continue
advancing its work on ensuring fiscal sustainability, streamlining of the tax revenue system, as
well as the pension plan and the expenditure structure of the health and education systems.
4.22. We look forward to having a constructive exchange of views on all aspects of Colombia's
economy. We wish the delegation the utmost success during this review.
SINGAPORE
4.23. In 2017, Colombia was Singapore's 6th largest trading partner in the Latin America and
Caribbean region. Total bilateral trade in goods between Singapore and Colombia amounted to
698 million SGD, which was an increase of 53.9% from 2016 to 2017, while bilateral trade in
services increased by 68.3% between 2015 and 2016. Singapore's direct investment abroad into
Colombia was 440 million SGD as at end-2016. Several Singapore-based companies have a
presence in Colombia, with more companies actively pursuing project opportunities.
4.24. Our economic ties are set to become even closer, with Singapore currently engaged in FTA
negotiations with the Pacific Alliance which Colombia is part of. We note the positive progress
made in the Pacific Alliance FTA negotiations so far and welcome Colombia's initial offer. With
continued good progress, negotiations could conclude by end-2018.
4.25. Singapore deeply appreciates Colombia's robust engagement in the rules-based multilateral
trading system and its advocacy of the WTO's important role as a global public good. At the WTO,
Colombia is an active and important player, and contributes significantly to the work both in
negotiations and in the regular committees, as well as in other initiatives. For instance, Colombia
recently took over as the coordinator for the Joint Statement Initiative on Investment Facilitation
for Development, and we look forward to working under their coordinator-ship. Singapore
commends Colombia's commitment to safeguarding the WTO dispute settlement mechanism and
its support for a swift resolution to the issue of Appellate Body appointments, as stated in its
Government Report.
4.26. We note Colombia is in the process of ratifying the Trade Facilitation Agreement (TFA). We
look forward to Colombia's acceptance of the TFA very soon. As for the Agreement on Government
Procurement, we note that Colombia has been an observer since 1996, and would like to
encourage Colombia to consider accession as a full member. At the same time, we would also like
to encourage Colombia to take steps to fulfil the outstanding notifications in areas such as
agriculture, services and import licensing which were highlighted in the Secretariat's report.
4.27. Singapore looks forward to continuing our warm and constructive cooperation with
Colombia, including through its capable Mission in Geneva, to uphold the multilateral trading
WT/TPR/M/372 • Colombia
- 15 system. Colombia's 5th TPR comes just after Ambassador Juan Carlos González's successful
chairmanship of the Trade Policy Review Body in the past year; we take this opportunity to again
express our appreciation for his personal contribution to the system. We wish Colombia every
success for this TPR.
SWITZERLAND
4.28. Switzerland and Colombia enjoy fruitful economic ties. The trade relationship of our two
countries has been strengthened by a comprehensive free trade agreement which was concluded
together with our partners from the European Free Trade Association EFTA. It has been in force for
Switzerland since 2011. Its implementation more or less coincides with the current trade review
period.
4.29. Colombia has become Switzerland's fourth most important partner when it comes to exports
into South America. Our exports to Colombia have increased by almost 20 % over the last five
years. On the other hand, our imports from Colombia have registered a decrease in value terms
after having spiked briefly right after the entry into force of the trade agreement. This decline has
to do with the volatility of world market prices for gold and precious stones. These commodities
make up a large part of our purchases from Colombia. On the whole, Colombia enjoys a trade
surplus in its dealings with Switzerland.
4.30. Switzerland is also an important investor in the country. Foreign direct investment worth
about a billion dollars is responsible for the employment of about 12'000 Colombians by Swiss
companies. Colombia has also been a focus country for our technical cooperation for almost a
decade now.
4.31. It is worth mentioning that these ties have raised our awareness of the importance of the
peace process in a country having to come to grips with internal conflicts. The peace process
should provide a favorable backdrop for structural reforms.
4.32. As the Secretariat's report has pointed out, Colombia's national income seems too
dependent on exports of petroleum and other mining products. Economic development is too
contingent upon the vicissitudes of the price movements on international commodities markets.
The deterioration of Colombia's terms of trade and the depreciation of the national currency may
be viewed as an opportunity. They underline the necessity to redouble efforts to diversify the
nation's export base. The recent increases in oil prices should not distract from this objective.
4.33. We commend Colombia for its open investment regime. An environment conducive to stable
inflows of FDI has contributed to making a persistent current account deficit more sustainable. We
take note of the explanation given by the Colombian authorities why certain sectors are subject to
specific authorizations as mining calls for coordination activities.
4.34. Diversification of the export base could be given a special impetus by improving the
economy's productivity. Moreover, growth potential could also be enhanced by an increase in
productivity. As Switzerland herself has experienced, this is far from easy to achieve. In
Colombia's case, however, we have the impression that government procurement is a sector which
seems to lend itself to more productivity gains. Public procurement makes up a large part of the
country's economy. It is true that measures were taken to make tendering more efficient.
4.35. Nevertheless, more competition could be injected. This could be done by opening up to
foreign competition of course. Colombia could contemplate joining the Government Procurement
Agreement, though we understand that the Colombian government uses government procurement
to aid domestic industry and employment.
4.36. We have followed with great interest Colombia's policy for improving the framework for the
protection of intellectual property rights. We will continue to monitor the implementation of rules
governing the use of compulsory licenses and the separation of marketing authorization from
pricing criteria for medicine.
4.37. Colombia's support for the call on the international community to increase efforts to phase
out subsidies to fossil fuels as a major contribution to climate change mitigation deserves special
WT/TPR/M/372 • Colombia
- 16 mention. We therefore encourage Colombia to continue being engaged on this issue, including on
discussions linked to trade-related aspects that are taking place at the WTO.
4.38. We look forward to Colombia's notifications on restrictions it maintains both for imports and
for exports. Switzerland submitted a follow-up question with respect to the so-called Colombia
Siembra plan, which supports domestic agriculture. We thank Colombia for having provided
detailed and timely replies to our questions.
4.39. We commend Colombia for its commitment to the multi-lateral trading system and its active
participation in WTO activities and its substantive contributions to its work.
4.40. In concluding, we wish Colombia a successful outcome of this Trade Policy Review.
CHILE
4.41. Relations between Chile and Colombia date back to the time of independence. Since then,
the relationship between the two countries has been marked by growing cooperation and
understanding, born of similar ideals and political views. We were extremely pleased to have been
able play a small part in the peace process, and congratulate Colombia for the positive results
achieved.
4.42. At the political level, ties between Chile and Colombia are optimal. We have a set of bilateral
integration and cooperation mechanisms, as well as 11 treaties and agreements in various
spheres, among which the Free Trade Agreement (FTA) signed by the two countries in 2006 is
worthy of mention.
4.43. As regards the functioning of this FTA, I would emphasize the role of its Administrative
Commission, which last convened in 2015 and mainly addressed market access, regulatory and
intellectual property matters, with particular emphasis on the commitments made in regard to
updating the lists of entities in the government procurement chapter and the agreement reached
on an Environmental Cooperation Action Plan.
4.44. Today, our ties are also centred on expanding political and economic relations through our
participation in a deep integration area such as the Pacific Alliance. This initiative, launched
together with Mexico and Peru, is aimed at our joining efforts so that we can act as a bloc in
matters regarding trade and investment and ensure the free movement of goods, services, capital
and persons.
4.45. We believe that both countries would greatly benefit from identifying areas of convergence
between the Pacific Alliance and the topics on the agenda of the Administrative Commission of the
Agreement so as to strengthen bilateral relations. In this connection, I take this opportunity to
invite the Colombian authorities to organize the next meeting of the FTA Administrative
Commission in Santiago de Chile.
4.46. Thanks to the range of agreements signed between Chile and Colombia, bilateral trade
integration has been on the rise. Overall trade between Chile and Colombia amounted to
US$1,885 million in 2017, representing an increase of 22.4% over the previous year. Although this
is a most encouraging figure, average annual growth declined to -9.5% between 2012 and 2017.
We hope that the increase recorded in this past year will be sustained and reverse the
five-year trend that preceded it.
4.47. Turning to direct investment flows, we would emphasize that Colombia is the third largest
destination of Chilean foreign investment, which totals close to US$18 billion. Some 150 Chilean
businesses are currently involved in more than 300 direct investment projects in Colombia, mostly
in the services sector, especially retail trade and financial services. Colombian investments in Chile
already exceed US$3.9 billion. We hope that the future will bring an increase in these bilateral
investment flows.
4.48. The reports submitted for this review show that since Colombia's previous review in 2012
the country's authorities have introduced a reform programme that includes fiscal incentives,
WT/TPR/M/372 • Colombia
- 17 reductions in tariffs and other taxes, changes to the investment regime, and increased investment
in infrastructure, with a view to boosting the economy.
4.49. During the review period, Colombia also undertook to simplify and harmonize its regulatory
framework. We encourage the authorities to continue the process and solve the complexities
ensuing from the changes introduced.
4.50. As regards trade facilitation, we welcome the improvements made to Colombia's customs
system with a view to modernizing and simplifying its regulations and bringing them into line with
international best practice. Such measures represent a step forward and we encourage the
authorities to continue on this path. We hope that they will soon ratify the Trade Facilitation
Agreement.
4.51. We also underscore the ongoing support to promote micro, small and medium enterprises
(MSMEs).
4.52. As regards Colombia's road infrastructure, we would like to point out that despite negative
growth of -0.1% in 2017 – far from the double-digit expansion forecast at the beginning of the
year – progress has been made in the legal sphere by (i) adopting the so-called "standard
specifications" to improve practices in regional procurement; and (ii) providing greater legal
certainty for "bona fide third parties" in the event of revocation/invalidity of contracts. In view of
the foregoing, we hope that Colombia will resume its road infrastructure development in the
medium term.
4.53. To conclude, and although the prospects for economic growth and inflation are favourable,
we would emphasize that a number of structural problems still pose significant challenges,
including the need to continue promoting economic diversification and reducing poverty levels. We
wish Colombia every success in addressing the challenges before it in this post-conflict phase.
4.54. Moreover, we underscore the Secretariat report's observation that Colombia continues to be
a staunch supporter of the rules-based multilateral trading system and, in these difficult times for
the world economy, that it advocates further trade liberalization. In our opinion, these are
fundamental principles today and are therefore worthy of mention.
4.55. Chile submitted nine questions for this fifth review and welcomes the replies received. We
wish Colombia a successful trade policy review.
AUSTRALIA
4.56. Australia congratulates Colombia on the significant progress it has made in creating an open
and competitive trade regime since its last Trade Policy Review in 2012.
4.57. In particular, we join others in congratulating Colombia on its recent accession to the OECD
and commend Colombia on achieving this important milestone.
4.58. Australia appreciated Colombia's commitment to bring about important policy reforms on its
path to OECD membership and welcome Colombia's continued efforts to align with OECD
standards, including on labour issues, corporate governance of state-owned enterprises,
anti-bribery, and foreign investment.
4.59. We note the achievements Colombia has made in modernising its legal framework and in
facilitating trade. This includes a number of improvements to its customs system, such as the
strengthening of its Single Window for Foreign Trade and the introduction of a risk management
system, which has led to fewer inspections and reduced clearance times.
4.60. We look forward then to Colombia ratifying the Trade Facilitation Agreement (TFA) and
appreciate that this is presently before Colombia's Constitutional Court. We highlight that Colombia
has included approximately 97% of TFA implementation commitments in Category A with all
remaining commitments in Category B to be implemented by February 2022.
WT/TPR/M/372 • Colombia
- 18 4.61. Colombia is an active and engaged WTO Member and Australia has enjoyed working closely
with Colombia to support the multilateral trading system and across the range of WTO
negotiations, particularly in agriculture.
4.62. We greatly appreciate Colombia's contribution as an active member of the Cairns Group.
Colombia has been a Member since the Cairns Group's formation in 1986, and has played a vital
role in pursuing the Group's shared interests of ongoing agricultural trade policy reform.
4.63. We also appreciate Colombia's active engagement in the Buenos Aires Joint Statement
Initiatives on electronic commerce, services domestic regulation, investment facilitation for
development, MSMEs, and Women's Economic Empowerment, which are helping to re-energise the
organisation.
4.64. We encourage Colombia to continue to work to ensure that it is up to date with all of its
WTO notification commitments and also encourage Colombia to submit the required changes to its
schedules to implement the Nairobi Ministerial Decision on export subsidies as soon as possible.
4.65. Australia's bilateral trade with Colombia is growing steadily off a modest base, with two-way
goods and services trade valued at over $600 million and Australia's investment in Colombia
valued over $3 billion. There is good potential for our economic relationship to grow further,
particularly in the areas of mining, equipment, technology, services, agriculture, tourism and
investment.
4.66. In this regard, we encourage Colombia to continue to improve the implementation and
enforcement of legislation governing foreign investment along with further development of
national legal institutions and judicial reforms on the governance of actions for protection.
4.67. Colombia continues to work on strengthening regional economic integration through free
trade agreements negotiated within the framework of the Pacific Alliance. Australia and the Pacific
Alliance launched negotiations for a free trade agreement on 30 June 2017 and we look forward to
concluding a comprehensive high quality agreement as quickly as possible.
4.68. We also welcome Colombia's expression of interest in joining the TPP-11, and that of any
country willing to and able to meet the TPP-11's high standards, including comprehensive tariff
elimination on trade in goods.
4.69. Finally, Australia again congratulates Colombia on its achievements since 2012 and wishes
Colombia a very successful and constructive Trade Policy Review.
COSTA RICA
4.70. Costa Rica is pleased to take part in this trade policy review of Colombia, with which we
have had a Free Trade Agreement since 2016 and share common interests and initiatives.
Colombia is the leading destination of our exports to South America and the second supplier of our
goods imports from that region; it was our third largest source of FDI in 2017, after the
United States and Switzerland.
4.71. Costa Rica acknowledges Colombia's constructive role in the WTO and its firm support for
the multilateral trading system.
4.72. Costa Rica and Colombia have been driving forward common initiatives aimed at liberalizing
trade in services, information technology and agriculture.
4.73. Costa Rica also shares Colombia's interest in areas such as the promotion of e-commerce,
MSMEs and women's empowerment in trade.
4.74. As regards this review, our first point of emphasis is the signing of the Peace Agreement
with the Revolutionary Armed Forces (FARC) in 2016, a historic event in Colombia which we
believe will contribute to create a climate more conducive to investment and will help boost trade.
WT/TPR/M/372 • Colombia
- 19 4.75. Despite the economic slowdown since 2015 due to the decline in oil prices, Colombia has
maintained a prudent macroeconomic policy and introduced a set of sound reforms in order to deal
with the situation.
4.76. The policy of integration in the world economy and the law on the monitoring of regional
trade agreements can make a decisive contribution to the much needed process of Colombian
export diversification. Innovation may also play an important role in the process, and hence we
note with interest that the objectives set out in the National Productive Development Plan aim to
increase productivity and diversification of the production system, with a focus on more
sophisticated goods and services.
4.77. Trade facilitation can also increase the Colombian economy's competitiveness and, in that
respect, the strengthening of the Single Window for Foreign Trade (VUCE) and the issuing of the
new Customs Statute are positive developments recorded during this review period. We note the
progress achieved in the process of ratifying the Trade Facilitation Agreement and hope that
Colombia will be able to complete this process as soon as possible.
4.78. As regards energy policy, we note that Colombia has adopted fiscal measures to stimulate
investment in the exploration and extraction of fossil fuels in response to greater demand for
energy. We would like to know how these incentives compare with those also offered for the use of
renewable energy and what the Colombian Government's projections are for developing this type
of more environmentally friendly source of energy.
4.79. The above-mentioned positive developments notwithstanding, we are concerned about
some aspects of Colombia's trade policy, especially the marked increase in the number of
anti-dumping investigations. According to the Secretariat report, Colombia initiated
45 anti-dumping investigations over the review period, as compared with 25 investigations
initiated during the previous period, meaning that Colombia practically doubled its use of this trade
protection instrument. Given the potential trade impact of this type of measure on its trading
partners, cautious resort to such measures would be advisable.
4.80. As regards the Andean Price Band System (SABP), we are concerned about the uncertainty
to which implementation of the system may give rise among trade operators and would therefore
like to know whether there are any short- or medium-term plans to change, replace or abolish the
system.
4.81. Lastly, I wish to congratulate Colombia on its recent entry into the Organization for
Economic Co-operation and Development (OECD).
4.82. For this trade policy review, Costa Rica submitted a few questions concerning investment,
financial services and international maritime transport. I would like to thank Colombia for the
attention it has given to these questions, and to end my statement by wishing it every success in
this trade policy review.
CHINA
4.83. We are pleased to see the remarkable progress that Colombia has achieved in economic and
trade since the last review. The GDP growth rate averaged 3.3% between 2012 and 2017. Such
growth was driven primarily by high increase in domestic demand, in the context of the structural
reform and the National Development Plan "All together for a new country". We expect Colombia
to maintain the growth momentum through the Economic Reform Programme, enhancing
productivity, improving the business climate and ultimately achieving the sustainable
development.
4.84. We note that Colombia has made tremendous efforts in reversing the sharp fall in the value
of exports of oil and other minerals, there have been increase in its agricultural export and service
exports since the last review. It is encouraging to see that Colombia is implementing a
diversification strategy, opening up its trade regime and promote exports of services and
non-traditional manufactured products.
WT/TPR/M/372 • Colombia
- 20 4.85. As a founding member of the WTO, Colombia has been a strong supporter of the multilateral
trading system and actively participated in WTO works. We note that Colombia has accepted the
Protocol Amending the TRIPS Agreement and was a signatory to the Information Technology
Agreement (ITA). Of course, we are expecting Colombia to soon rectify the Trade Facilitation
Agreement (TFA). In addition, Colombia has signed the Joint Ministerial Statement on Investment
Facilitation for Development at MC11 and served as new coordinator to further promote the
structured discussion on "Investment Facilitation for Development".
4.86. Recent years have seen rapid growth in bilateral trade and investment between China and
Colombia. China is Colombia's second largest trading partner. The Sino-Colombian bilateral trade
has reached US$11.3 billion in 2017, increased by 21.5%. By the end of 2016, China has invested
in Colombia US$362 million in total, mostly in the areas of energy, telecommunications and
services. By the end of first quarter of this year, Colombia has invested in China 146 projects with
value of US$17.73 million in the areas of manufacture, distribution and commercial services.
4.87. In order to better understand the latest development in trade policy, we have raised some
questions regarding agricultural trade promotion policy, and market access in express services. We
appreciate the replies provided by Colombia to our questions which we would study carefully.
4.88. In this regard, we note that the number of anti-dumping measures initiated by Colombia
has increased during the review period. We are concerned with some unfair practices in the antidumping investigations by Colombia including the "analogue country" methodology.
4.89. China will further promote cooperation with Colombia through the Belt and Road Initiative,
strengthening synergy between the development strategies, boosting economic growth in
Colombia in the Latin America and Caribbean regions, with priorities in areas of infrastructure,
energy, transportation, industry, agriculture and tourism.
4.90. We expect to realize the consensus reached by our leaders on signing a free trade
agreement between our two countries at an earlier date. And we readily welcome more Colombia
enterprises and products to enter into China's market.
4.91. Currently, the WTO is facing serious challenges that have to be dealt with by all WTO
Members. China would work together with Colombia and other Members to preserve the basic
principles of this Organization, fight against unilateralism and protectionism, and collectively
safeguard the multilateral trading system.
4.92. To conclude, I wish this Review a complete success.
INDONESIA
4.93. In the last five years between 2013 and 2017, the total trade between Indonesia and
Colombia has been experiencing a decrease trend of 2.75%, with trade value reaching a five-year
high of US$154.3 million in 2014. Some of Indonesia products that have a good market in
Colombia include textile products, electrical machinery and equipment, rubber, footwear, organic
chemical, paper, essential oil and so forth. We hope that the economic reform programme in
Colombia which includes tax incentives, reductions in tariff and other taxes will stimulate further
improvement in our bilateral trade performance.
4.94. There are also some concerns that Indonesia tries to raise during this review process. We
have addressed the details of these concerns in our written questions, which include among
others, issues related to the threshold established in the Decrees No. 1.744 and No. 1.745,
clarification on the goods covered in the Decree No. 925 of 2013 classified in Automatic Licensing,
and the frequent amendments to Colombia regulations and the certain peculiarities of its system
that make the implementation of those amendments become lengthy.
4.95. We thank Colombia for the replies to these advanced written questions, which we received
in Spanish. We, in Geneva and in Jakarta, are looking forward to have the English version. And to
this, Indonesia wishes to use this opportunity to convey much appreciation to Colombia
Genevan-based delegation on the excellent cooperation accorded to the Indonesian delegation in
Geneva, and on their very active engagement in various issues of common concern.
WT/TPR/M/372 • Colombia
- 21 4.96. Lastly, Indonesia wishes much success to Colombia in this fifth Trade Policy Review.
UNITED STATES
4.97. Much has changed in Colombia since its last TPR in June 2012, and the United States
commends Colombia for all that it has since achieved. We note that, at the time of Colombia's last
TPR, the United States-Colombia Trade Promotion Agreement had only recently entered into force
in May 2012. The U.S.-Colombia TPA is a comprehensive free trade agreement that covers trade in
goods and services, and provides important disciplines in areas such as intellectual property rights,
investment, telecommunications, and labour and environmental protection. Colombia undertook a
number of reforms to implement the U.S.-Colombia TPA. We believe that these measures
contribute not only to our bilateral trade relationship, but also to the multilateral trading system
and the expansion of global trade, and in turn, benefit Colombia's other trading partners.
4.98. As Colombia's number one trading partner, the United States has a strong, positive and
growing commercial relationship with Colombia. According to the U.S. trade statistics, our total
two-way goods trade during 2017 was US$26.8 billion, and Colombia is currently the United
States' 26th largest goods trading partner.
4.99. Of course, Colombia has not only focused on tis trade relationship with the United States. As
the Secretariat's report notes, Colombia also has implemented new trade agreements covering
goods and services with the Pacific Alliance, Costa Rica, the Republic of Korea, and the European
Union, and the agreement with EFTA (European Free Trade Association) has now entered into
force with all the EFTA countries. We also congratulate Colombia on completing the technical
reviews of its accession to the OECD and look forward to Colombia's full participation once its
deposits its instrument of accession to the OECD. Finally, I would like to commend Colombia on its
major accomplishment of the Peace Accord with the Revolutionary Armed Forces (FARC) that was
signed in November 2016 – this achievement clearly contributes to Colombia's economic stability
and generates new impetus for an expansion in Colombia's trade relations.
4.100. As in its 2012 TPR, Colombia has identified both attracting foreign investment and further
diversifying its economy and exports as key elements of its overall economic growth and trade
policy strategy. We agree that those are important objectives.
4.101. The United States welcomes the positive steps Colombia has taken in many areas. For
example, the Secretariat's report points to accomplishments and advances in the areas of customs
and the simplification and harmonization of Colombia's regulatory framework. While Colombia
could do more in the intellectual property (IP) area, we note that it has taken many positive
actions in the IP space since the last TPR in 2012. Colombia has changed a number of laws and
regulations in order to implement the trade agreements that it entered into since the last TPR,
including, as noted earlier, the U.S.-Colombia TPA. These changes were significant and
transformative actions. However, to facilitate investment and market openness and in turn fully
realize the benefits of these changes, Colombia should ensure a higher level of regulatory
transparency, including opportunities for public comment. The Secretariat's report also noted in
several places that Colombia has made a number of notifications to the WTO in some areas, but
not in others. We encourage Colombia both to increase its efforts towards regulatory transparency
and to make more extensive and effective use of WTO notification procedures, including in the
areas of agriculture, services, and import licensing. We urge Colombia to update its notifications in
these areas.
4.102. The United States has some specific concerns as well. With respect to customs practices,
the Secretariat's report notes that Colombia adopted a new Customs Statute in 2016, but many of
the provisions have not yet been implemented. Passage of the new customs statute is an
important step forward. However, traders and other stakeholders will only benefit from the new
provisions when they are implemented in practice. We are concerned that Colombia is delaying
implementation on many of the provisions by 15 months, from August 2018 to November 2019,
according to the Secretariat's report. We also note that many of the customs measures the
Secretariat's report states are not yet in force were reported by Colombia as Category A under the
Trade Facilitation Agreement (TFA). We remind Colombia that measures notified as Category A
were to be implemented upon entry into force of the TFA in February 2017. We urge Colombia to
redouble its efforts to fully implement the 2016 Customs Statute as soon as possible. We also urge
WT/TPR/M/372 • Colombia
- 22 Colombia to deposit its letter of acceptance for the TFA with the Director General as soon as
possible. Taking note of the Secretariat's report, we further urge Colombia to be mindful of the
prohibition on the use of reference prices for customs valuation, including when it seeks to create
databases and set guarantees.
4.103. We have submitted a short list of questions about specific issues in Colombia's trade
regime. We look forward to reviewing and discussing Colombia's responses.
4.104. The United States appreciates Colombia's active participation in our work here at the WTO.
We especially wish to recognize the various important leadership roles that Ambassador González
has assumed within this Organization; we also greatly value Colombia's dedicated involvement and
hard work in our negotiations regarding fisheries subsidies.
4.105. The United States is committed to building on our current strong trade and economic
partnership with Colombia, and supports Colombia's progress along the path of global economic
integration that it has so strongly pursued. We commend Colombia on its active participation in the
WTO and for showing leadership and ambition in the pursuit of trade liberalization. We remain
committed to continued close cooperation with Colombia to deepen our relationship bilaterally as
well as in the WTO.
DOMINICAN REPUBLIC
4.106. The Dominican Republic shares close bonds of friendship with Colombia dating back to
1936, and these ties between two countries belonging to the same region have grown stronger
over time.
4.107. The Dominican Republic commends Colombia for its successful economic performance over
the review period, during which the country's GDP grew at an average annual rate of 3.3% in spite
of the slowdown experienced since 2015. We are interested to see the reforms introduced by
Colombia with a view to boosting economic growth, which comprise fiscal incentives, reductions in
tariffs and other taxes, changes to the investment regime, and increased investment in
infrastructure.
4.108. We also note that Colombia still faces the challenge of export diversification, as it remains
heavily dependent on oil exports, which, according to the Secretariat report, accounted for 40% of
the country's exports in 2017. A major drop in value ensued from the decline in oil prices. We
therefore urge Colombia to pursue its efforts to diversify its export base.
4.109. We commend Colombia for maintaining an open investment regime, providing for foreign
private investment in all sectors, except where prohibited on security grounds. As regards the
trade regime, we are pleased to note that it is equally open and that the review period saw the
implementation of trade facilitation measures such as the strengthening of the Single Window for
Foreign Trade (VUCE) and the introduction of the risk management system, which has reduced the
number of inspections and clearance time. Another achievement was the adoption of a new
Customs Statute with a view to modernizing and simplifying customs regulations and bringing
them into line with international best practice. We take a very favourable view of the relatively low
average MFN applied tariff rate, which stood at only 7.1% in 2017.
4.110. During the review period, Colombia also adopted measures to enhance its intellectual
property regime and adapt it to technological developments and its international commitments.
The changes focused on adjusting the rules; optimizing the administration of intellectual property
rights; streamlining registration procedures; consolidating interinstitutional coordination; and
strengthening enforcement.
4.111. Lastly, the Dominican Republic asked Colombia a number of questions concerning,
inter alia, anti-dumping investigation procedures, the price band system and export incentives. We
appreciate receiving its replies, which we shall examine with care. In closing, we can only urge
Colombia to continue on the path of progress and wish it every success in this fifth trade policy
review and in the future.
WT/TPR/M/372 • Colombia
- 23 JAPAN
4.112. According to the Secretariat report, Colombia has maintained a steady growth in GDP since
the last review. It is true that its economy highly depends on the export of petroleum and
petroleum products which account for approximately 40% of total exports; however Japan is
aware that the country is now undertaking relevant reforms to diversify its export base in order to
make its economy more resilient to exogenous shocks. Japan positively evaluates its efforts and
expects the Government of Colombia to continue its reforms.
4.113. When it comes to its trade policies, Colombia's active engagement in the WTO activities is,
first and foremost, commendable. During the review period, Colombia participated in the 17 cases
as a third participant. Furthermore, Colombia has actively taken part in initiatives in the WTO by
like-minded Members, such as the Joint Statement Initiative on e-commerce. Japan highly
appreciates Colombia's contribution to the Multilateral Trading System.
4.114. In terms of measures which facilitate trade, we particularly commend the strengthening of
the Single Window for Foreign Trade (VUCE). VUCE, which was created in 2004, has been
improved since the last review. Among others, the simultaneous inspection system (SIIS) for
containerized export cargo and the risk management system (SAR) are commendable.
4.115. As for its efforts on trade liberalization, though the Secretariat Report notes that the
Government of Colombia has undertaken Structural Tariff Reform (REA), there still remain some
rooms for improvement. For instance, we have been reported of its high MFN applied tariff rates
from the Japanese companies in Colombia. As written in the Secretariat Report, the average MFN
applied tariff rate rose by 0.9 percentage points from 6.2% in August 2011 to 7.1% in 2017.
Furthermore, we reported that some Japanese companies expect sanitary controls and trademark
registration process to be simple and more transparent. Japan encourages Colombia to pay
attention to those areas and continue its efforts on trade liberalization.
4.116. In conclusion, I would like to express our strong wish to continue our cooperation between
Colombia and Japan. We wish Colombia a successful and productive TPR.
EUROPEAN UNION
4.117. Let me start by highlighting that Colombia is an important strategic and economic partner
of the European Union.
4.118. Colombia is the fourth largest economy of Latin America and its trade with the EU accounts
for €11.6 bn. The EU is Colombia's second trading partner and our bilateral Trade Agreement –
provisionally applied since August 2013 – helps strengthen our trade relations, and has contributed
to a significant diversification of Colombia's exports. As regards investment, the EU is the biggest
foreign investor in Colombia. These figures show the strength and depth of our bilateral trade and
investment relationship.
4.119. With reference to Colombia's economic policy, the EU acknowledges the progress Colombia
has made in recent years, and we congratulate your efforts to cut red tape, simplify the tax
system, and implement necessary structural reforms. We encourage Colombia to keep up its
efforts, while pursuing the goal of social cohesion and further opening of the economy.
Undoubtedly, the successful process of joining the OECD has provided an important stimulus for
sectoral reforms, and we hope that these reforms will further increase productivity and boost
sustainable growth in the coming years.
4.120. Focusing on Colombia's trade policy, we would like to express our support for the
improvements recorded in the period under review. For example:

The EU welcomes Colombia having adopted a reform of the spirits import regime which
facilitated market access and removed a large part of the previous discrimination against
imported spirits. We look forward to the full implementation of Colombia's commitments in
line with the GATT principle of national treatment, notably through the even application of
the so-called "exploitation charges" levied in some departments.
WT/TPR/M/372 • Colombia
- 24 
The EU also appreciates the measures taken to facilitate the imports of heavy trucks, and
looks forward to the effective termination of the national scrappage policy no later than the
end of this year.
4.121. The EU welcomes Colombia's strong support for the multilateral trading system and its
interest in regional and bilateral negotiations.
4.122. The EU thanks Colombia for its overall positive approach to complying with WTO
notification obligations. Yet, the EU notes that Colombia has not notified subsidies under
Article 25.1 of the Agreement on Subsidies and Countervailing Measures since 2011 and calls on
Colombia to do so without further delay.
4.123. At a multilateral level, I wish to convey the EU's appreciation for the constructive approach
of Colombia in the WTO negotiations, particularly in the fisheries subsidies negotiations where
Colombia has been an active proponent. The EU trusts Colombia will continue to be fully engaged
in the multilateral trading system and to display leadership in the negotiations of substantive
outcomes in the WTO, and is particularly committed to continue working together with Colombia
on fisheries subsidies.
4.124. At a bi-regional level, the EU is monitoring the deepening of the Pacific Alliance and its
negotiations with other trade partners and associate countries. Regarding our bilateral Trade
Agreement, we appreciate Colombia's constructive approach with regard to the accession of
Ecuador to the Agreement, and also Colombia's active and constructive participation in the annual
Trade Committee and Sub-Committees.
4.125. Despite the positive overall trading relationship we also have a series of concerns and
suggestions. Turning now to these, I would like to highlight some of them which are of particular
interest to the EU:
4.126. First of all, more efforts are needed to cut red tape and procedures for effectively
accessing Colombia's market. EU operators are concerned with the highly burdensome and costly
import procedures that often require a disproportionally high number of documents, for example
for sanitary registrations. There is also significant potential to improve and expedite border
procedures and joint inspection by Colombian government agencies.
4.127. In our written questions, we have also asked Colombia to explain the rationale of some
technical barriers to trade, such as labelling requirements on imported beers in several
departments, which raises concerns from a national treatment angle. Regarding imported beers,
we would also like to encourage Colombia to review its current taxation rules, which in many cases
result in a higher tax burden on imported products.
4.128. In addition, as discussed during Colombia's OECD accession process, we would like to
highlight the need for the transparent and accountable implementation of provisions concerning
Intellectual Property Rights related to pharmaceuticals in the National Development Plan.
4.129. Finally, the EU would encourage Colombia joining the Government Procurement Agreement
in the future.
4.130. On behalf of the EU, I look forward to a constructive exchange of views during this review
and I wish delegation of Colombia great success during its Trade Policy Review.
NORWAY
4.131. Norway is pleased to note Colombia's economic growth over recent years. We encourage
the Government to continue its work to promote poverty reduction and a more equal income
distribution. The work towards implementation of the peace accord has been more complicated
and slower than expected, but must continue.
4.132. To be able to perform well in the programs, reforms and strategies already agreed upon, it
will be highly important to strengthen institutions especially in the rural areas, and assure that
WT/TPR/M/372 • Colombia
- 25 progress is made in the infrastructure projects, which are essential to improve Colombia's
competitiveness internationally.
4.133. Colombia is an active Member of the WTO, and a founding Member of the Organization. We
highly value Colombia's many contributions to the work of the WTO, and its support to the
multilateral trading system. Paragraph 3.2.1 in the Government's report, deals with compliance
with WTO rules in general. We have a specific question in this regard and wonder whether
Colombia could confirm information provided during the February meeting of the Committee on
Agriculture that revised schedules for export subsidies will be forwarded in the third quarter of
2018.
4.134. Norway is pleased to note that the Government report explicitly states that Colombia firmly
believes that the WTO dispute settlement process is an asset to the multilateral trading system
and must be safeguarded. We are also appreciative of Colombia's work to reach consensus on a
comprehensive outcome document from the negotiations on fisheries subsidies, including a ban on
subsidies to illegal, unreported and unregulated fishing. We would furthermore like to thank
Colombia for its active participation in different joint initiatives from Buenos Aires and note in
particular its work as coordinator of the informal dialogue on investment facilitation for
development.
4.135. Norway would like to congratulate Colombia on its work that resulted in the signing of
Colombia's accession agreement to the OECD membership on the 30th of May this year. We are
pleased to note that since Colombia's last TPR in 2012, the EFTA-Colombia free trade agreement
has entered into force between our two countries.
4.136. Norway attaches great importance to international trade in maritime transport services.
Maritime transport provides essential infrastructure for trade in general, investments and economic
development. It is a longstanding interest of Norway that all Members contribute to predictability
and openness in this key sector through binding commitments. Against this background, we
appreciate that trade in international maritime transport services is open for foreign participation
in Colombia, thus providing a good basis for future commitments.
4.137. Climate change is a challenge facing all Members. Norway urges Colombia, being a part of
the International Communique on fossil fuel subsidy reform, to continue its efforts to reduce
harmful fossil fuel subsidies.
4.138. Norway wishes Colombia a successful Trade Policy Review.
ARGENTINA
4.139. Colombia is an important trading partner for the Argentine Republic. Our country exports
vehicles, barley, soybean oil and machinery to Colombia. Our imports from Colombia include
non-agglomerated bituminous coal, polypropylene in primary form, herbicides, insecticides, and
fungicides. Approximately 93% of Colombia's tariff lines have been liberalized for Argentina and
around 94% of the Argentine market has been liberalized for Colombia.
4.140. Argentina is pleased to note that Colombia's GDP grew at an average annual rate of 3.3%
during the review period. This economic growth was accompanied by a major reform agenda
comprising fiscal incentives, tariff reductions, changes to the investment regime, and increased
investment in infrastructure.
4.141. We also note the introduction of a tax reform law aimed at improving revenue collection.
Equally commendable are the country's efforts to diversify the export base, which is chiefly
concentrated in petroleum and petroleum products, coal, chemical products, coffee and flowers.
4.142. Argentina recognizes Colombia as a staunch supporter of the multilateral trading system.
We welcome the international integration strategy that Colombia has been implementing in recent
years. This policy has involved, among other things, entering into new regional trade agreements
with Costa Rica; the European Union; Korea, the Republic of; the Pacific Alliance; and
the United States.
WT/TPR/M/372 • Colombia
- 26 4.143. Our country is interested to note that foreign direct investment (FDI) is permitted in
almost all sectors of the economy, except in specific cases where it is prohibited on security
grounds. Foreign investors may set up business through commercial companies and may have
subsidiaries in the country. The procedures for registering foreign direct investment made under
contractual arrangements were simplified in 2017.
4.144. As regards Colombia's trade regime, we note that it has been bolstered by measures to
modernize the legal framework for trade and facilitate trade. Among other initiatives, the
strengthening of the Single Window for Foreign Trade (VUCE) and the introduction of the risk
management system are worthy of mention. Likewise, in 2016 Colombia adopted a new
Customs Statute, which we are confident, will help simplify customs regulations and bring them
into line with international best practice.
4.145. Argentina welcomes the measures aimed at enhancing the role of micro, small and
medium enterprises (MSMEs). We underscore the implementation of special tax regimes for
MSMEs and the financing provided through the Colombian Fund for Modernization and
Technological Development of MSMEs (FOMIPYME).
4.146. We thank Colombia for its replies to our questions relating to this trade policy review,
which will be carefully examined by the authorities in Buenos Aires.
4.147. To conclude, we reiterate our appreciation of this renewed opportunity to exchange
comments on Colombia's trade practices and wish the Colombian authorities a successful
conclusion to this review.
TRINIDAD AND TOBAGO
4.148. Trinidad and Tobago and Colombia enjoy a cordial relationship with trade and security
cooperation being key areas of our bilateral relations. We consider it a privilege to be involved in
this fifth review of Colombia's trade policies and practices, and our active involvement today
reflects the value we accord to the relationship with Colombia.
4.149. The importance of Colombia's Cooperation Strategy with the Caribbean Basin, in promoting
technical cooperation in the areas of national security and energy security as well as education, in
particular, language training, should be acknowledged.
4.150. Colombia is a significant trading partner of Trinidad and Tobago and that relationship is
governed by the CARICOM-Colombia Agreement on Trade, Economic and Technical Cooperation.
As a signatory to the Agreement, Trinidad and Tobago benefits from two-way trade liberalization
and trade facilitation with Colombia. Trinidad and Tobago has generally been a net importer of
goods from Colombia.
4.151. The Colombian Government's policy of democratic prosperity is indeed worthy of praise.
Trinidad and Tobago applauds the efforts of the Colombian Government in securing the Agreement
for the Construction of a Lasting, Stable Peace with the Revolutionary Armed Forces (FARC) in
November 2016. The projections for average growth in GDP in the years following signature of the
Agreement are encouraging. We are heartened that areas affected by the conflict are already
reaping benefits of the peace. A revitalized tourism sector has significant potential to contributing
to the growth of the economy. With Colombia being a land of diverse landscapes, it may be quite
true that with a sustained peace, "the only risk is wanting to stay". We acknowledge Colombia's
ranking by the World Bank as the fourth best place for doing business in Latin America and the
Caribbean.
4.152. Colombia is Trinidad and Tobago's second largest trading partner in the Americas. We
support the efforts of the Colombian Government to make full use of trade and investment
agreements to promote diversification of the economy and reduce the level of poverty and
unemployment, and increase the productivity of its businesses.
4.153. We commend the strategies and programmes to stimulate the economy, namely the
Productivity and Employment Promotion Plan 2.0, Colombia Bounces Back, the National Productive
Development Policy, the Scientific Colombia Programme, the "Lawfulness and Combatting
WT/TPR/M/372 • Colombia
- 27 Smuggling" strategy, the Single Window for Business (VUE), the Productive Transformation
Programme (PTP), the Productive Colombia programme, the "Tourism Sector Plan to Build Peace
2014-2018", and the National Tourism Register.
4.154. My delegation has submitted a number of questions and we thank Colombia for its written
responses.
4.155. We also note the focus on transport, education, security and combatting corruption.
4.156. Trinidad and Tobago wishes Colombia a successful Trade Policy Review.
BRAZIL
4.157. First of all, the Brazilian delegation expresses its recognition, admiration and support for
the Colombian Government's efforts to drive the peace process forward. We believe that
consolidation of this new environment will offer Colombia new opportunities for trade, investment,
tourism and development, and will have positive effects for the entire region.
4.158. The Colombian economy managed to withstand the strong impact of the crisis ensuing
from the fall in international commodity prices, especially oil prices, on the country's exports,
precisely during the period covered by this report, that is, between 2012 and 2017. In spite of
everything, sound fiscal and monetary policies and overall openness to trade enabled Colombia to
maintain positive growth rates and low levels of unemployment.
4.159. The Brazilian delegation expresses its recognition, admiration and support for the
Colombian Government's efforts to drive the peace process forward. We believe that consolidation
of this new environment will offer Colombia new opportunities for trade, investment, tourism and
development, and will have positive effects for the entire region.
4.160. Brazil congratulates Colombia on assuming the pro tempore presidency of the
Pacific Alliance and for its leadership in the joint efforts to unite the two regional blocs, namely
MERCOSUR and the Pacific Alliance. This dialogue has real potential for boosting trade,
investment, and the integration of value chains in Latin America. We are committed to seeking
effective economic integration, which will deliver tangible benefits for our citizens.
4.161. In accordance with our roadmap, adopted at the MERCOSUR Summit in Mendoza in
July 2017, our two blocs are taking a proactive approach in addressing matters relating to
cumulation of origin, production chains and customs procedures, barriers to trade, and services
trade facilitation.
4.162. As indicated in Colombia's report for this trade policy review, Economic Complementarity
Agreement (ACE) No. 72, signed in July 2017 between Colombia and the founding members of
MERCOSUR, provides tangible evidence of our commitment to free trade. We can say with
certainty that following the entry into force of ACE No. 72 in December 2017 trade between Brazil
and Colombia became almost entirely duty free.
4.163. Brazil also congratulates Colombia on its recent entry into the OECD. The expansion of the
Organization, which now numbers 37 members, can contribute to broadening and diversifying its
agenda.
4.164. Brazil and Colombia are linked not only by close bonds of friendship and shared values, but
also by trade and mutual investment, which are further bolstering the relationship between our
countries. In 2017, trade flows returned to their US$4 billion level. Colombia's sales to Brazil in
that year rose by around 59% to US$1.44 billion, reflecting the resumption of income from
Colombian oil and mineral exports to Brazil and the rest of the world. Last year, Brazil was
Colombia's fourth largest product supplier and the seventh largest market for Colombian exports.
4.165. As regards investment, we would emphasize the substantial increase in the number of
Brazilian businesses investing in Colombia, which has risen from 40 to 84 over the past four years
and reflects the growing confidence of Brazilian entrepreneurs in our neighbouring country's more
favourable business environment. For its part, Colombian investment in Brazil is also on the
WT/TPR/M/372 • Colombia
- 28 increase, especially in the energy, chemicals and services sectors. I am pleased to highlight the
fact that Brazil and Colombia signed an Investment Cooperation and Facilitation Agreement in
2015. Once it enters into force – hopefully in the very near future – this Agreement will give an
even greater boost to our mutual investments and thus contribute to increased integration of our
economies and societies.
4.166. Our two countries are continuing to work together and look jointly towards the future.
During the recent visit of President Juan Manuel Santos to Brasilia on 20 March last, we took
further steps to deepen our economic and trade relationship, with the signing of important
agreements to promote cooperation among our small and medium enterprises and to use digital
certificates of origin, which will cut through the red tape in bilateral trade.
4.167. On the other hand, we should not settle for what we have achieved so far. Brazil believes
that the time has come for both countries to recognize the equivalence of sanitary measures and
guarantees provided for livestock production and trade and meat processed within our respective
jurisdictions. Different approaches and standards still stand – unnecessarily – between the
two countries and have an undesirable impact on our regional efforts to address common
challenges.
4.168. To conclude, I thank the delegation of Colombia for its replies to Brazil's questions, which
have been forwarded to our capital for consideration and follow up. We wish Colombia a most
productive trade policy review.
NEW ZEALAND
4.169. New Zealand has an active interest in Colombia's trade and investment policies and
congratulates Colombia for its recent accession to the OECD. The accession process has been
valuable to supporting Colombia's domestic reforms and we look forward to working closely with
Colombia in that forum to deliver better well-being for our people.
4.170. New Zealand and Colombia share a strong commitment to trade liberalization and regional
economic integration. We are currently exploring opportunities to boost our trading partnership to
the Pacific Alliance and New Zealand particularly values Colombia's leadership of the Alliance over
the past year.
4.171. We commend Colombia's efforts to maintain the momentum of trade liberalization in the
region and its continued interest in connecting with the wider Asia-Pacific region of which we are
part.
4.172. During the period of this review, the Government of Colombia successfully negotiated a
peace agreement with the FARC putting an end to more than 50 years of civil conflict. Not only is
this an impressive achievement in and of itself, but it has also offered space for Colombia to focus
on necessary economic reforms. New Zealand believes that Colombia's continued economic
performance and its population's well-being would be enhanced by the dividends produced by the
successful implementation of the peace agreement.
4.173. We would like to acknowledge Colombia's achievements on poverty reduction and we
would like to encourage Colombia to deepen its efforts in this area.
4.174. New Zealand congratulates Colombia for the regulatory reforms undertaken during this
period to facilitate trade and foreign investment. While there remains implementation hurdles, New
Zealand acknowledges Colombia's efforts to open-up its markets.
4.175. We also congratulate Colombia for the structural tax reform carried out in 2016 where
corporate taxation was redefined, revenue collection was improved, and measures to avoid tax
evasion were applied.
4.176. During the review period, Colombia showed moderate GPD growth rate with a downward
trend since 2015. The collapse of oil prices to some extent affected this outcome. Nevertheless,
during the same period, Colombia maintained a low and stable inflation rate.
WT/TPR/M/372 • Colombia
- 29 4.177. New Zealand encourages Colombia to follow this positive path. We also recognize
Colombia's efforts to diversify its exports in order to decrease its dependency on raw materials,
especially on oil and its derivatives.
4.178. New Zealand supports Colombia's efforts to increase the use of renewable energy sources.
4.179. We appreciate the responses Colombia has provided to New Zealand's questions and we
would like to touch in particular on two areas. New Zealand highly values Colombia's support for
the Friends of Fossil Fuel subsidies reform communiqué in 2015 and welcomes its efforts to
promote the development of renewable energy sources.
4.180. New Zealand encourages Colombia to continue its efforts to combat illegal, unreported,
and unregulated fishing and to strengthen the sustainable development of fishing and aquaculture.
4.181. New Zealand thanks Colombia for its continued commitment to the multilateral trading
system and emphasizes our appreciation for the constructive engagement we enjoy with or
Colombian colleagues here in Geneva. We work closely together as fellow members of the CAIRNS
Group of agricultural products to achieve further liberalization through the WTO of trade in
agriculture.
4.182. We welcome the positive steps that Colombia has taken in reforming and growing its
economy since its last Trade Policy Review in 2012. These steps have been achieved under difficult
circumstances and we sincerely hope that Colombia continues to enjoy the economic dividends of
peace in the coming years.
4.183. We look forward to further discussions on the issues we have raised during the course of
the review.
THAILAND
4.184. Thailand and Colombia have a stable bilateral trading relationship. Colombia is the sixth
largest trading partner of Thailand in Latin America. In 2017, total trade between the two
countries amounted to US$250 million.
4.185. During the review period, Colombia's GDP increased at an average annual rate of 3.3%
and inflation remained relatively low and stable. Since 2012, Colombia has launched an economic
reform programme in order to stimulate the economy, which includes, for instance, tax incentives
to promote private investment, reductions in tariffs and other taxes, changes in the investment
regime to simplify the procedures for the registration of foreign investments, and increased
investment in infrastructure. In terms of trade, Colombia has continued to implement a policy of
greater integration into the global economy, seeking better market access conditions for its
exports and imports, while reducing its production costs.
4.186. Thailand welcomes Colombia's consistent efforts in modernizing the legal framework and
promoting trade facilitation. For instance, it has introduced a number of improvements to the
customs system, including the strengthening of the Single Window for Foreign Trade and the
implementation of the risk management system. In 2016, Colombia also adopted a new Customs
Statute to modernize and simplify its regulations and bring into line with best international
practices.
4.187. Regarding agriculture, it is considered as Colombia's strategic sector, on account of its
contribution to GDP and employment. Its share in GDP increased in the period under review, rising
from 5.8% in 2012 to 6.5% in 2016. The sector is, moreover, a key source of employment,
providing jobs for 3.5 million people and absorbing 14.5% of the labour force in 2016. In this
regard, we commend Colombia as a Cairns Group member, for its active and constructive role in
bringing about a free, fair in agricultural trade including being a champion for agricultural reform
as mandated in Article 20 of Agreement of Agriculture.
4.188. Thailand is pleased to learn about the implementation of the Colombia Siembra ("Colombia
Sows") plan with a view to boosting agricultural supply in order to guarantee food security in the
country, expanding production area and yields and promoting agricultural and agro-industry
WT/TPR/M/372 • Colombia
- 30 exports, stimulating the development of trade in agriculture in order to improve incomes for
producers, and strengthening technological development and services in the agricultural sector.
4.189. Moreover, Thailand appreciates Colombia's efforts to strengthen its intellectual property
regime and adapt it to technological developments and to its international commitments.
4.190. Thailand continues to value Colombia's contribution and commitment to preserving and
strengthening the multilateral trading system. Colombia participates in both the ITA and ITA
Expansion Agreements, acceded to the Protocol amending the TRIPS Agreement, and was in the
process of ratifying the Trade Facilitation Agreement.
4.191. In this review, Thailand submitted a set of questions, covering the policies and measures
of our interests such as the advanced ruling practices, non-tariff measures, investments in travel
and tourism sectors, and business development in service sectors. Thailand thanks Colombia for
the timely responses to our questions and will study them in detail with great interest.
4.192. In conclusion, we wish Colombia every success in this Trade Policy Review.
ECUADOR
4.193. Ecuador has a major interest in participating in this review, not least because Colombia is
our neighbour, one of our main trading partners and a party, as we are, to various agreements
such as the Andean Community, LAIA and the Multiparty Agreement with the European Union.
4.194. Colombia is the fifth largest destination of Ecuador's non-oil exports, capturing 6% of
sales. As regards non-oil imports, Colombia is Ecuador's fourth largest supplier market, with a
10% share.
4.195. Ecuador's non-oil trade balance with Colombia was in deficit for Ecuador by US$760 million
in 2017.
4.196. In that same year, Ecuador's non-oil exports to Colombia amounted to US$747 million,
down by 7% compared to 2016. Non-oil imports were worth US$1,507 million.
4.197. Ecuador's leading goods exports to Colombia are palm oil, canned tuna, wood-based
panels, shrimp and cane sugar. We shall closely follow developments regarding the entry of
Ecuadorian rice into the Colombian market.
4.198. Ecuador's main goods imports from Colombia are medicines, fungicides, freight transport
vehicles, motor cars and cane sugar.
4.199. Turning to the Secretariat report for this trade policy review, I would like to underscore the
active and important role played by Colombia in regional trade.
4.200. We welcome the fact that Colombia is taking steps to improve internal tax collection and is
actively implementing an export diversification strategy.
4.201. Ecuador emphasizes the importance of the exercise in transparency and insight into public
policy afforded by trade policy reviews at the WTO. In this connection, my country asked the
delegation of Colombia a few questions, one of which emphasized Ecuador's concern regarding
National Drugs Council Resolution No. 001-2015 of 8 January 2015 prohibiting the entry of
Ecuadorian cement through our common land border at Ipiales, because it is considered a
chemical substance or product that may, directly or indirectly, be used or destined for the
extraction, processing and refining of drugs.
4.202. In Ecuador's view, the Resolution is an internal control measure, as those subject to
control are natural or legal persons engaged in activities relating to the production, distribution,
purchase, consumption, importation or storage of controlled chemical substances and products.
The establishment of specific customs districts through which Ecuadorian cement may enter for
control purposes, located at a distance from the border at Ipiales, defeats the objective of the
measure and turns it into a restriction on Ecuadorian exports.
WT/TPR/M/372 • Colombia
- 31 4.203. We hope that Colombia will review the inclusion of cement as a substance subject to
control. The CONCEPTO 30976 document, issued by Colombia's National Tax and Customs
Directorate (DIAN) in May 2011, specified that the limitation, under the Leticia Special Customs
Regime, on importing "narcotic drug precursors" does not affect cement since it is not classed as a
precursor, despite the special control to which it is subject pursuant to National Drugs Council
Resolution No. 9 of 2009.
4.204. We would also like more information in response to question 4/6 in document RD/TPR/934
concerning Law No. 223, which provides that "the tax paid by foreign products may never be lower
than the average tax paid by domestically produced products"; what we would like is details as to
how Colombia ensures that foreign products are taxed neither at a lower rate nor at a higher rate
than that applied to domestic products.
4.205. In closing, we thank the Colombian delegation in anticipation for its replies to our
questions on various specific aspects of Colombia's trade policy, which will serve as important
inputs for strengthening relations with this country.
HONDURAS
4.206. Colombia is Latin America's fourth largest economy. We are pleased to note that Colombia
recovered well from the shock caused by the drop in international oil prices. Continued
implementation of the Peace Agreement, coupled with the Government's structural reform agenda,
which includes an efficient tax reform, has contributed to a stable economic environment.
4.207. We welcome the Colombian Government's efforts to diversify the economy, as embodied in
the National Development Plan, which seeks to increase exports of non-mining goods and, in so
doing, to contribute to more sustainable growth, with gains across the board, by boosting
productivity.
4.208. According to the Secretariat report, Colombia consolidated its main macroeconomic
indicators in 2016. In 2017 the Government built on this foundation with the Colombia Repunta
(Colombia Bounces Back) programme, an economic stimulus plan that granted tax incentives to
encourage private-sector investment, increase public investment in the 4G network, the tertiary
roads network and house building, promote more extensive use of royalties for regional
investment purposes, and provide resources for the peace process.
4.209. We are very pleased to note the country's strong performance in reducing poverty and
unemployment. As stated in the Government report, multidimensional poverty in Colombia has
continued to fall since 2010, and by 2016 it had decreased by approximately 41%. Unemployment
dropped to a historic low of 9.4% in 2017.
4.210. We are also glad to learn that the internal process for ratifying the Trade Facilitation
Agreement is now reaching completion and that Colombia will very soon be able to deposit its
ratification instrument. As regards customs regulation, we welcome the substantial changes made
to customs legislation with a view to modernizing and simplifying the regulations and bringing
them into line with international best practice. We appreciate the replies to the questions
submitted by our delegation in this respect.
4.211. Our bilateral trade relationship with Colombia is based on long-standing fraternal and
neighbourly relations between our two countries, inspired by the need to expand our markets.
4.212. We have a free trade agreement that has been in effect since 26 March 2010. Trade
between Colombia and Honduras amounted to around US$163,000 in 2017. There is no doubt as
to the potential of our trade relations with Colombia, and the Honduran Government is keen to
consolidate and further develop the relationship.
4.213. To conclude, we wish Colombia a successful fifth trade policy review and welcome the
extraordinary achievements of our Colombian neighbours, especially the historic Peace Agreement
and the country's entry into the OECD on 30 May last.
WT/TPR/M/372 • Colombia
- 32 GUATEMALA
4.214. Guatemala and Colombia share common interests and ideals on several fronts in this
Organization, and we are convinced that both countries will continue to build trust and work
tirelessly to expand their strategic alliances, both here and in other regional and subregional
forums.
4.215. In connection with this review, we highlight the efforts made by the
Colombian Government to promote a series of measures and strategies to strengthen the country's
various production and services sectors, such as the tourism sector, where continuous training
programmes are provided for tourism personnel and tax incentives are given for investing in the
sector, for example the 9% income-tax rate and follow-up incentives over a period of 20 years for
the construction and refurbishment of hotels in settlements with fewer than 200,000 inhabitants.
4.216. The country's strong performance in reducing poverty and unemployment is also worthy of
note.
4.217. We welcome the implementation of trade facilitation measures, such as the strengthening
of the Single Window for Foreign Trade (VUCE), created in 2004, and the introduction in 2012 of
the simultaneous inspection system (SIIS) for containerized export cargo, which enables
four control entities to participate in a single inspection, thus reducing inspection time for import
and export operations. Another advance has been the implementation since 2015 of the risk
management system (SAR) for import and export registration applications submitted to the VUCE.
4.218. As regards the MSME sector, it should be pointed out that with its amendments to the
2011 law on MSMEs, the Colombian Government is providing a set of tools and instruments in
support of such enterprises. The overriding aim is to promote development of the sector, create
jobs and establish new production chains.
4.219. As to bilateral relations, Colombia is a very important trading partner for Guatemala in the
Latin American region. In 2017, Colombia ranked 26th among Guatemala's export trading partners
and seventh in terms of imports. As far as bilateral trade is concerned, Guatemala's main imports
from Colombia include various mineral products, plastics and plastic products, pharmaceuticals,
insecticides, fungicides and disinfectants, perfumery, toilet and cosmetic preparations,
electromechanical domestic appliances, machinery and mechanical equipment for electrotechnical
use, various products of the chemical industry, other base metal manufactures, and vehicles and
transport equipment.
4.220. Colombia's foreign direct investment (FDI) in Guatemala amounted to US$160.2 million in
2017, representing 14% of total FDI inflows. The key investment sectors were banking and
insurance, electricity, manufacturing and telecommunications.
4.221. In addition, it is important to highlight Colombia's trade in services achievements, as a
result of which the services sector now accounts for almost half of GDP and employment in the
country.
4.222. In conclusion, Guatemala's wish is that, in implementing its economic and trade policies,
Colombia may reap further success in terms of economic growth and development. Guatemala is
confident that our two countries will continue to strengthen their commercial and neighbourly ties.
4.223. We appreciate the replies to our questions and wish the Colombian delegation a successful
conclusion to this exercise.
REPUBLIC OF KOREA
4.224. At first, Korea would like to join in congratulating Colombia on its recent accession to the
OECD.
4.225. Korea and Colombia have developed a strong economic partnership since the
establishment of diplomatic relations in 1962. Our economic relations have continued to deepen
further since the Korea-Colombia FTA came into force in 2016. As a result, the volume of bilateral
WT/TPR/M/372 • Colombia
- 33 trade increased up to US$1.5 billion in 2017 from US$1.3 billion in 2016. Bilateral trade volume is
expected to expand continuously as almost all tariffs are set to be eliminated within 10 years after
the FTA came into effect.
4.226. From a trade policy perspective, as the Secretariat's report noted, the growth rate of the
Colombian economy decreased down to 3.3% during the review period from more than 4% during
2012 to 2014. This slowdown resulted from a decrease in exports, particularly those of oil and
other raw materials as well as a decline in growth for domestic demand.
4.227. However, Korea believes that the Colombian economy has greatly strengthened its
potential through the various efforts that the Colombian government has made. Since 2012,
Colombia has implemented new regional trade agreements covering trade in goods and services
with the Pacific Alliance, Costa Rica, the Republic of Korea, the United States and the European
Union. Moreover, it has adopted a number of measures to modernize its legal framework and
facilitate trade.
4.228. Colombia, as a founding Member of the WTO, has participated actively in the WTO such as
by ratifying the Protocol Amending the TRIPs Agreement and participating in the ITA. However, it
has not ratified the Trade Facilitation Agreement. Furthermore, it initiated up to 45 anti-dumping
investigations during the review period, which is much more than 25 cases between 2006 and
2011. We hope that Colombia will expedite the process for ratifying the TFA and refrain from
excessive recourse to anti-dumping measures.
4.229. Korea hopes to continuously develop our economic relationship with Colombia going
forward. In addition, we expect Colombia to continue to contribute towards strengthening the
multilateral trading system.
4.230. With this, we would like to express our deep appreciation to the Colombian delegation for
its hard work and wish them every success in this TPR.
TURKEY
4.231. Being the fourth biggest economy in Latin America and one of the most important
emerging markets in the world, Colombia is an important partner for Turkey. In the review period,
we see that inflation rate remained within the range pursued by the Central Bank around 4%, and
the unemployment rate kept stable around 9%. At the same period, Colombia has had a modest
growth rate of 3.3%, which seems to have been limited by the falling prices of oil and oil products,
a major category of Colombia's exports. It is understood that a major challenge for the Colombian
economy is to diversify the exports base and to minimize the negative effects of the dependency
on oil and other raw materials, so that the significant decrease in the overall trade volume during
the review period would not repeat again. Poverty ratio has improved from 34% in 2011 to 28% in
2016, thanks to the ability of Colombia's economy to create new jobs and the comprehensive
macro policies pursued. No need to mention that there is still room to further decrease this figure.
Similarly, Colombia is better to continue implementing necessary strategies to decrease the public
sector deficit. We believe that trade policy objectives in the National Development Plan will help
the Government to reach the overall macro targets.
4.232. We are also glad to see that Colombia became the 37th member of the OECD in 2018. We
believe that Colombia's economic and trade policy will benefit from the accession to the OECD.
4.233. We are glad to see that Colombia continued its efforts to make its trade and investment
regime more open in the review period. The improvements in the customs systems such as the
strengthening of the Single Window for Foreign Trade and the adoption of a new Customs Statute
to modernize and simplify the customs regulations are also positive developments. In this regard,
in alignment with all these efforts, we are of the belief that Colombia's ratification of Trade
Facilitation Agreement would be another stepping stone for further integration of Colombian into
global economy. New trade agreements signed with the Pacific Alliance, Costa Rica, Korea, the
U.S. and the EU in the review period show the great importance of trade for Colombia. The efforts
of the Government to make public procurement system more efficient and transparent as well as
to strengthen the intellectual property rights system will help the Colombian economy to become
more competitive in future. At this point, let me also applaud our Colombian colleagues in Geneva,
WT/TPR/M/372 • Colombia
- 34 for their hard work and valuable contribution to the activities under this roof. For instance, we
appreciate Colombia's constructive engagement in the fisheries subsidies negotiations as a
member of the 6 Latin American countries. Colombia is a valuable and third biggest trading
partner of Turkey in Latin America. Nevertheless, our trade volume is still far away from mirroring
our excellent political relations (Turkey's export to Colombia was US$185 million and import from
Colombia was US$1.69 billion in 2017). In this direction, a Free Trade Agreement (FTA) is
currently being negotiated between our countries. We held the seventh round of negotiations in
Bogota this year. We hope to conclude these negotiations and sign an FTA with Colombia as soon
as possible.
4.234. We are also pleased that Pro-Colombia, the trade promotion agency of Colombia has an
office in Istanbul to intensify our trade relations.
4.235. Turkey and Colombia signed a Bilateral Investment Treaty in 2014. We hope that Colombia
will finalize its domestic procedures soon. Finally, we would like to mention our appreciation to be
given the opportunity to make our points known on the trade policy of Colombia and we wish
Colombia a very successful review (and a successful World Cup).
EL SALVADOR
4.236. We note from the Secretariat report that the Colombian economy grew steadily during the
review period. GDP rose at an average annual rate of 3.3%, with a peak of over 4% in 2012-2014,
and, despite a slowdown that began in 2015 owing to the decline in – chiefly oil – exports, it
recorded 1.8% growth in 2017. Thanks to Colombia's inflation-targeting system, inflation remained
relatively low and stable, and as regards the exchange rate, the country also managed to maintain
the stability of the peso, following a sharp downturn mainly due to the fall in oil prices and the
national currency's subsequent recovery.
4.237. We are pleased to note that Colombia has opted for modernization, especially by
simplifying and harmonizing its regulatory framework, updating the legal framework for trade,
trade facilitation and customs regulation, adopting new competition rules and a policy to improve
the regulatory framework and corporate governance of State-owned enterprises, and upgrading
the government procurement and intellectual property systems.
4.238. Like all other Members, Colombia obviously still has challenges to overcome, such as
reducing poverty and diversifying its export base. Nonetheless, it has adopted support policies that
have benefited its production sectors, such as credit incentives for businesses, tax incentives for
MSMEs, the Colombia Siembra (Colombia Sows) Plan to diversify crops, and the Price Stabilization
Funds for agricultural products.
4.239. Colombia has also turned to new technologies and innovation for micro and small
enterprises and in the financial and telecommunication sectors.
4.240. Furthermore, Colombia is to be congratulated on its entry into the OECD.
4.241. At the bilateral level, diplomatic relations between Colombia and El Salvador were
established in 1825.
4.242. Today, aside from the trade topics to which I shall refer later on, there has been an
increase in institutional development cooperation, especially in the justice sector, on matters such
as assistance to victims and transitional justice, the fight against corruption, accountability of
judicial and police officers, and disciplinary proceedings.
4.243. On the trade front, El Salvador and Colombia have been stepping up their bilateral
relations since 1984, initially under a partial scope agreement and then under a free trade
agreement since 2007. Until a year ago, El Salvador was Colombia's tenth largest investment
destination in Latin America. Colombia is one of El Salvador's ten main sources of imports,
essentially consisting of chemical products, such as medicines, perfumes, cosmetics and
pesticides, and commodities such as refined petroleum and polymers of propylene. El Salvador's
leading exports to Colombia are chemical products, such as ready-packed medicines, cleaning
WT/TPR/M/372 • Colombia
- 35 products and sulphates, as well as food products, including raw sugar, processed fish, flavoured
water and fruit juice.
4.244. We would like to underscore our acknowledgment of Colombia's work and involvement in
the proceedings of this Organization, driven by the country's remarkable team in Geneva under
the efficient guidance of Ambassador González.
4.245. I cannot fail to mention Colombia's historical circumstances, marked by events very similar
to those experienced in Salvadoran history. Both countries have known episodes of violence, which
ended in peace agreements that ultimately enabled our peoples to benefit from a phase of national
reconstruction. Based on practical experience, we should emphasize that this kind of process is not
simple. It involves risks and challenges for all the parties involved. The Colombian people, having
expressed themselves through the ballot box, succeeded in consolidating peace in 2016. It is truly
admirable that Colombians, in a show of great courage and fortitude and using the tools of
democracy, laid the foundations on which to build the road to peace, development and well-being
in this fellow Latin American country.
4.246. In light of the foregoing, it only remains for us to congratulate Colombia for its outstanding
performance and to wish it every success in this exercise.
MALAYSIA
4.247. We would like to extend our congratulations to Colombia on the various policies and
initiatives implemented by the Government during the period under Review.
4.248. In 2017, Colombia was ranked Malaysia's 73rd largest trading partner in the world and 7th
largest trading partner among the Latin American countries. Malaysia's total trade with Colombia
increased by 43.3% from US$112.9 million in 2016 to US$155.8 million in 2017, with exports to
Colombia grew by 21.0% to reach US$97.7 million.
4.249. Trade continued to grow strongly in the first quarter of 2018, with total trade increased by
28.2% to US$49.1 million, and exports to Colombia grew by 32.6% to US$34.1 million. In
investment, we continue to encourage Colombian companies to establish operations in Malaysia in
the manufacturing and services sector.
4.250. It is important to highlight that Colombia is one of the most dynamic economies, with the
third-highest GDP growth rate in the Latin American region. We applaud Colombia's effort to
liberalize trade and participate in global value chains through its membership in the Pacific Alliance
along with Chile, Mexico and Peru, including through FTAs with other trading partners.
4.251. At the multilateral front, we commend Colombia for showing strong commitment towards
progressive trade and investment policies under the WTO such as acceding to the Protocol
Amending the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs
Agreement) and participating in the Information Technology Agreement (ITA). Colombia is also an
active Member and has subscribed as Malaysia to the Joint Statements adopted at the previous
11th Ministerial Conference on Electronic Commerce for Development, MSMEs and Investment
Facilitation. Malaysia looks forward to working closely with Colombia and all other Members on
moving these initiatives forward in the WTO.
4.252. We note that Colombia is in the process of ratifying the Trade Facilitation Agreement (TFA)
and we would encourage Colombia to expedite the notification process of the remaining
commitments.
4.253. While welcoming the trade initiatives and further liberalization undertaken by Colombia
over the review period, we would like to seek further clarity on some of policy. Among those, the
higher application of the tariff levels applied to the agricultural sector to non-agricultural goods;
the IP policy and in relations to pharmaceutical products, and self-certification in Colombia. We
also look forward to hearing more on MSMEs in in Colombia. Such, we look forward to the replies
to our written questions on certain aspects of its trade policy.
WT/TPR/M/372 • Colombia
- 36 4.254. We would also like to express our appreciation to the Permanent Representative of
Colombia, Ambassador Juan Carlos Gonzales and his committed team for their tireless efforts and
constructive engagement with other delegations here in Geneva.
4.255. We wish Colombia a productive and successful Fifth Trade Policy Review.
INDIA
4.256. During the period under review from 2012-17 the GDP of Colombia grew at an average
rate of 3.3% driven, mainly by domestic demand. The key challenges for Colombia include the
shrinking of the mining sector which came down from 11% of GDP in 2012 to 5.3% in 2017 and
decline in exports due to the votality of international oil prices and addressing issues related to
poverty alleviation and human development indicators. We commend the Government of Colombia
for the concerted efforts and various initiatives being taken to address these challenges which
include the comprehensive National Development Plan 'All Together for a New Country' which aims
to build a peaceful and equitable country. The strategies under the Plan include strengthening
infrastructure, competitiveness, economic development and attracting foreign investment.
4.257. India and Colombia share warm, close and multifaceted relations. There are regular
exchanges between both countries including exchange of business delegations for promoting trade
and investment. The bilateral trade between two countries stood at US$1.53 billion registering a
growth over the previous year. There is tremendous potential to promote trade between both
countries in areas like metals, minerals, textiles, automobiles, gems and jewellery,
pharmaceuticals and agricultural products. The number of Indian companies is growing in
Colombia with investments in areas like IT, pharmaceuticals, agro chemicals, plastics and
automobiles. ONGC Videsh, an Indian public-sector company, is also engaged in a joint venture for
oil exploration and production operations in Colombia.
4.258. For capacity building and human resources development, India is regularly offering slots in
various training institutions to professionals from Colombia under India's Economic and Technical
Cooperation programme. India also offers scholarships to Colombian Students under cultural
scholarship schemes. Both countries have also signed agreements in science and technology, IT,
sports, health and other areas for promoting technical assistance and cooperation.
4.259. We wish to also highlight some issues which are impacting the vast underlying potential in
our relations:

The complex and bureaucratic export procedures are making it difficult for Indian companies
to invest and export to Colombia.

Indian Goods including basmati rice and finished textiles products face tariff barriers in
exports to Colombia.

The number of Indian companies in IT and Services sector which are contributing to the
development of Colombia are growing. However, these companies face quota restrictions for
getting Indian IT professionals to Colombia to expand their operations. Relaxation in these
requirements will help to promote trade in services.

Colombia has imposed a minimum import price for fibre, yarn fabrics, man-made apparel
and footwear.

Indian companies in the area of agro chemicals and pharmaceuticals face difficulties in trade
and investment in Colombia due to the complex regulatory procedures and requirement of
environmental clearances.

The trade of Indian agricultural products is also being affected due to the stringent sanitary
and phytosanitary requirements.

We would urge the Government of Colombia to look into these issues to address them. India
also stands ready to constructively engage bilaterally to discuss and resolve these for
mutual benefit.
WT/TPR/M/372 • Colombia
- 37 4.260. To conclude, we look forward to working closely with the authorities of Colombia for further
expanding and harnessing the potential of our trade and investment ties for mutual benefit. We
wish the delegation of Colombia a productive and successful TPR.
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
4.261. Since Colombia's last trade policy review in 2012, it has made substantial efforts to boost
the country's economic activity, and in the 5 years under review between 2012 and 2017 it has
succeeded in achieving positive economic growth at an average annual rate of 3.3%. We commend
the Colombian government on the series of reforms it introduced to adjust tariffs, promote
investment, and facilitate trade with foreign partners, as well as its vigorous efforts to improve
governance in the public sectors. We hope that Colombia will continue to implement further
measures to help keep the trade regime open, efficient and transparent in the future. In addition,
of course, we especially applaud its conclusion of the "Peace Agreement", signed in late-2016,
which ends half-a-century of tragic internal violence, and creates the conditions of peace and
stability that are so essential for the future development of the country and its people.
4.262. We are also delighted to see Colombia's successful accession to the OECD as its 37th
Member, on the eve of this TPR on 30 May 2018. This serves to confirm its serious commitment to
pursuing international standards in areas such as the justice system, labour, state-owned
enterprises, and many others.
4.263. As Columbia is one of the original founding Members of the WTO and such an active player
in the work of this Organization, we hope to see it continuing to support the strengthening of the
Multilateral Trading System, and help to advance discussions on initiatives such as E-commerce,
MSMEs, and Trade and Women's Economic Empowerment. In the same context, with Columbia
currently being an observer to the Government Procurement Agreement (GPA) and considering
that government procurement accounts for an important part of its GDP, hopefully Columbia will
become a full signatory to the Agreement in the near future, as well as the fast ratification of
Trade Facilitation Agreement (TFA).
4.264. We have also been closely following Colombia's progress on its stated policy objectives of
greater integration in the world economy, with its signing of bilateral trade agreements with major
trading partners like the US, the EU, and South Korea, and the recent trade negotiations between
the Pacific Alliance and four Associate Members (Australia, Canada, New Zealand and Singapore)
in the Asia-Pacific region to further broaden trade flows and investment.
4.265. As far as our own bilateral trading relations with Columbia are concerned, we are actively
seeking to find opportunities to expand the volume of our two-way trade in the fields of
agriculture, mining, industrial products, and the renewable energy sector, which would be mutually
beneficial to our SMEs and MSEMs in particular.
4.266. In conclusion, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
appreciates the opportunity of participating in this review. We look forward to continuing close
cooperation with Colombia in both the bilateral and the multilateral forums. May I wish the
Colombian delegation a most successful and fruitful Trade Policy Review.
4.267. Thank you very much for giving me the floor.
ICELAND
4.268. We welcome the positive developments in Colombia's trade policies since its last TPR and
we congratulate the Government of Colombia on the signature of the Peace Agreement in
November 2016.
4.269. We welcome the emphasis on trade and open markets in the new National Development
Plan. Statistics indicate strongly that trade openness can be measured in terms of economic
growth productivity, higher standards of living and even promotion of peace.
4.270. Open economies grow faster than closed economies. It is encouraging to read from the
report that the economy of Colombia is stable and growing.
WT/TPR/M/372 • Colombia
- 38 4.271. Colombia and Iceland cooperate closely when it comes to trade, here at the WTO, as well
as on the basis of our Free Trade Agreement that was signed in 2008.
4.272. We commend Colombia on its support to the multilateral trading system in general, as well
as for its valuable engagement in the discussions here at the WTO, including by chairing this Body
last year, as well as coordinating the dialogue on investment facilitation for development.
4.273. We also would like to commend Colombia for its engagement in the fisheries subsidies
negotiations.
4.274. On the occasion of the 11th Ministerial Conference in Buenos Aires last December, more
than 120 Members and Observers launched a joint Declaration on Women and Economic
Empowerment that aims, inter alia, at sharing best practices and working together in the WTO to
remove barriers for women's economic empowerment and increase their participation in trade.
Colombia is a supporter of the Declaration and we welcome the emphasis placed on the issue and
the report by the Government of Colombia. It was interesting to read about the experience of the
flower sector in Colombia in relation to economic empowerment of women. These examples of how
the empowerment of women can have a positive effect on trade and the economy as a whole are
in the spirit of our declaration and exactly what we need to move our discussion forward. We
thank the Government of Colombia for sharing it with us.
4.275. In closing, Iceland reiterates its appreciation for Colombia's active engagement in the
WTO. We wish the Colombian delegation every success with its trade policy review and we look
forward to continuing our close cooperation with Colombia, both bilaterally and here at the WTO.
THE PHILIPPINES
4.276. The Philippines and Colombia enjoy 72 years of friendship, which has been revitalized
recently through the first opening of an Embassy in Manila in September 2017, with Colombian
Deputy Foreign Minister Patti Londoño gracing the milestone event.
4.277. It may also be recalled that Colombian President Juan Manuel Santos Calderon visited
Manila to attend the Informal Dialogue between APEC and Pacific Alliance leaders at the APEC
Summit held in Manila in 2015.
4.278. It was during a bilateral meeting between the two leaders at the sidelines of this summit
where mutual interests were expressed to further enhance trade relations between the two
countries. The Philippines welcomes Colombia's active engagement as an observer in the APEC
process and appreciates its contributions to trade and investment facilitation and cooperation in
the Asia-Pacific region.
4.279. During the 3rd Bilateral Consultation Mechanism in September 2017, a process which was
first established between the two members in 2009, senior officials from both countries exchanged
views on regional and multilateral issues impacting both East Asia and Latin America.
4.280. The Philippines is committed to deepen relations with Colombia and remains open to
opportunities for bilateral cooperation, particularly in the areas of trade and investment, defense,
the peace process and anti-drug war, where Colombia can share with the Philippines many
lessons. Given the strengths of Colombia's industrial sector, the Philippines would also like to
explore cooperation in the areas of chemicals, textiles, and clothing and footwear manufacturing.
4.281. Trade between the Philippines and Colombia is quite modest but continues to grow in the
recent years. Philippine exports to Colombia increased by an impressive 71.59% in 2017 reaching
trade value of US$18.11 million compared to the previous year's US$10.55 million; while imports
from Colombia stood at US$12.84 million, representing an increase of 7.87% for the same period.
Major Philippine exports to Colombia include input or output units of data processing machines,
desiccated coconuts, other articles of plastics, and other agricultural products. Major Philippine
imports from Colombia include fungicides, continuous-action elevators and conveyors, and citric
acid salts and esters.
WT/TPR/M/372 • Colombia
- 39 4.282. Growing of trade among non-traditional trade partners can show the value of the WTO in
expanding trade and investment when major players are questioning the value of increased trade
and investment to their economies.
4.283. Colombia's average annual GDP growth rate of 3.3 per cent from 2012 to 2017 is driven by
domestic consumption—quite similar to the Philippine economy. The Colombian economy has also
shown its resilience by maintaining a growth rate above the average for Latin America and the
Caribbean countries despite the fall in commodity prices. Although the prospects for economic
growth and inflation are favorable, we are confident that Colombia will overcome the structural
challenges it faces, including the need to continue promoting diversification of the economy and
reducing poverty which stands at 28% in 2016.
4.284. The Philippines commends the Colombian government's efforts under its National
Development Plan 2014-2018 to address the task of building a peaceful, equitable, and educated
Colombia through cross-cutting strategies on competitiveness, social mobility, rural development,
security, good governance, and green growth. We also laud Colombia's National Productive
Development Policy, which aims to expand the supply of exportable goods and services in order to
make full use of trade agreements and develop participation in global value chains.
4.285. Colombia is a founding Member of the WTO and has signed the protocols on
telecommunications and financial services annexed to the GATS and the protocols amending the
TRIPS. It participates in the Information Technology Agreement, and we look forward to its prompt
ratification of the Trade Facilitation Agreement, which all APEC economies have already ratified. It
is also an active member in the various formal and informal committees in the WTO, including the
Friends of MSMEs Group, which recognizes the important role of Micro, Small and Medium
Enterprises.
4.286. The Philippines looks forward to continue working with Colombia to further strengthen the
economic relations between our two countries through bilateral, regional, and multilateral fora.
4.287. The Philippines also thanks former TPR Chair, Colombian Ambassador Juan Carlos Gonzalez
who served as Chair of the Philippines' TPR held in March 2018.
SRI LANKA
4.288. My delegation noted the modest growth performance of the Colombian economy at an
annual average rate of 3.3% over the review period from 2012-2017 despite the world economic
shocks. As a country heavily depends on energy and mining exports, makes it vulnerable to
fluctuations in world commodity prices. We believe that the recently launched economic reform
programme, which includes tax incentives, tariff other tax reductions, changes in the investment
regime, and increased infrastructure investment, will help stimulating the economy on the fast
track. Like many other developing countries, including Sri Lanka, Colombia faces difficulties in
overcoming its current account deficit owing to high dependency on imports.
4.289. We note with interest the number of measures that Colombia has undertaken to open up
its trade regime, including modernization of legal framework, improvements to the customs
system, including the strengthening of the Single Window for Foreign Trade and introduction of the
risk management system with fewer inspections and reduced clearance time.
4.290. Although Colombia maintains 13 different tariff rates ranging from 0-98%, almost half of
its tariff lines are zero-rated. Colombia has bound all its tariff lines at an average rate of 42%
whereas the average applied MFN tariff rate is 7.1%. Only 6.2% of tariff lines are subject to a rate
exceeding 15%. However, the product categories such as clothing, dairy and animal products are
subject to highest average tariffs. In addition, Colombia temporarily applies the WTO bound tariff
to imports of footwear and clothing entering to Colombian market at prices below or equal to
certain thresholds established. Moreover, more than 6,000 tariff lines are subject to automatic
licensing requirements, while 180 tariff lines are subject to non-automatic licences.
4.291. As a founding Member of the WTO, Colombia, in particular the Permanent Mission in
Geneva, plays an active role. The dynamic role played by His Excellency the Ambassador Mr. Juan
Carlos González and his team in Geneva in proactively engaging in ongoing activities of the WTO is
WT/TPR/M/372 • Colombia
- 40 highly commendable. Ambassador González played an interesting role chairing this Committee
until he handover the chairmanship to Ambassador Laourou.
4.292. We invite the delegation of Colombia to accelerate its process of ratifying the Trade
Facilitation Agreement, as more than one and half years have been lapsed since entering into force
of the agreement. Also, we note that Colombia takes part in the negotiation son TISA, and
participated in the Information Technology Agreement. It is interesting to note that Colombia is an
active user of WTO's trade remedies, in particular anti-dumping measures. It has initiated
45 anti-dumping investigations, as compared to 25 during the previous review period. It has also
initiated 4 safeguard investigations during the period.
4.293. In the bilateral front, Colombia and Sri Lanka maintain very friendly relations. The bilateral
trade stands at a moderate level but in an increasing phase. Balance of trade is always in favour of
Sri Lanka except in 2009 and 2010. Export of Ceylon Cinnamon, which is well-known among the
Latin American Region is the dominant export item which accounts for 70% of Sri Lankan exports
to Colombia in 2017. Sri Lanka's imports from Colombia during the last several years are
comparatively at a negligible level and do not witnesses a regular pattern as well.
4.294. In concluding, my delegation sincerely wishes the delegation of Colombia a successful
deliberation on its fifth Trade Policy Review.
URUGUAY
4.295. Uruguay maintains friendly and constructive relations with Colombia in the various spheres
covered by their bilateral relationship, which includes not only policy, the economy and trade, but
also cooperation and culture.
4.296. First of all, Uruguay wishes to congratulate Colombia for its progress in the trade policy
field thanks to consolidation of the peace process, which has enabled conflict-ridden areas to reap
the benefits of peace.
4.297. Since Colombia's last trade policy review in 2012, political and trade relations between the
two countries have grown stronger.
4.298. The Fourth Meeting of the Uruguay-Colombia High-Level Political Mechanism took place in
April 2017, with Uruguayan Foreign Minister Rodolfo Nin Novoa and Colombian Foreign Minister
María Ángela Holguín leading their respective delegations.
4.299. The meeting addressed bilateral trade between the two countries, emphasizing the need to
hold new consultation meetings with a view to consolidating the Memorandum of Understanding on
Strategic Partnership and further deepening the Economic Complementarity Agreement between
MERCOSUR and Colombia.
4.300. As regards trade proper, Uruguayan exports were worth close to US$65 million (including
the free zones) in 2017 and consisted chiefly of essential oils, miscellaneous edible preparations,
fish and crustaceans, pharmaceuticals, various products of the chemical industry, milk and
milk products, and meat and edible meat offal.
4.301. Uruguayan imports from Colombia are mostly mineral fuels, plastics and plastic products.
4.302. Although Uruguay enjoys good conditions of access to Colombia's market, it would be most
important for Uruguayan producers to secure access for citrus products, pears, blueberries and
honey, among others.
4.303. In terms of investment, the Zonamerica company in Cali is one of the largest investments
made by a Uruguayan firm in Colombia. The project covers an area of 38 hectares and will
comprise 18 office buildings, a data centre and staff qualified to provide support services to
businesses and their clients. Once completed, it is expected to provide employment for more than
17,000 people.
WT/TPR/M/372 • Colombia
- 41 4.304. The three
Gilinski Groups.
largest
Colombian
investments
in
Uruguay
are
the
Éxito,
Sura
and
4.305. Turning to development, Uruguay wishes to highlight Colombia's National Development
Plan, aimed at increasing Colombia's exports of non-mining/energy goods and services by making
full use of trade and investment agreements.
4.306. It should be noted that one of the Plan's strategic pillars is to boost the productivity of
Colombian businesses by making the production base more sophisticated and diversified,
increasing the production capacity of 2,000 enterprises and developing a range of programmes
and strategies for micro, small and medium enterprises (MSMEs).
4.307. The period under review saw the registration of 884 MSMEs, which raised their productivity
levels and turned from underdeveloped production units into stronger enterprises seeking to
continuously improve their processes.
4.308. It is also interesting to cite a few key laws and programmes forming part of the regulatory
framework for MSMEs in Colombia, namely the MSME Law of 2000, the National Support System
for MSMEs of 2004, the National Guarantee Fund, and iNNpulsa Colombia.
4.309. Uruguay accordingly encourages Colombia to continue taking an active part in the
WTO Informal Working Group on MSMEs, and invites it to share its experience in implementing
national strategies, which might be helpful in promoting the successful integration of MSMEs into
international trade.
4.310. Furthermore, Uruguay wishes to highlight the work done by Colombia in order to join the
Organization for Economic Co-operation and Development (OECD), which culminated in an
invitation to become the Organization's 37th member.
4.311. Lastly, we reaffirm our interest in continuing to work towards a positive outcome at the
Twelfth Ministerial Conference and in protecting a multilateral trading system based on predictable,
transparent and balanced rules.
4.312. Uruguay wishes Colombia every success in its fifth trade policy review.
PANAMA
4.313. Panama and Colombia are not only neighbouring countries but are also bound together by
ties dating back to pre-Columbian times. In the nineteenth century, Colombia, then known as
New Granada, and Panama, together with Ecuador and Venezuela, formed part of Gran Colombia
until we separated in 1903. One hundred and fifteen years later, Colombia is still one of Panama's
main trading partners, a major user of the Panama Canal, and the largest investor in our part of
the Latin American region.
4.314. Over the past 20 years we have seen Colombia turn into a stronger, more diverse economy
that is more open to the world. We highlight the efforts made by Colombia in the framework of its
bilateral trade partnerships with other countries, the Andean region, LAIA and the Pacific Alliance,
and its entry into the OECD.
4.315. On the other hand, we note Colombia's continued heavy reliance on raw materials and the
way in which the latter affected the country's growth and currency exchange value in recent years.
We therefore take a positive view of the processes and programmes implemented over these past
few years in order to simplify trade, as well as those aimed at encouraging and increasing exports.
4.316. As we have already said, Colombia is an important trading partner for Panama, and in the
past three years, our trade has averaged US$400 million per year. A small portion of this amount
represents Panama's exports of food and chemical products to Colombia. The bulk of our trade
consists of Colombian exports of medicines, fuels and electronic products to Panama.
4.317. It should be emphasized that this does not sum up trade between our countries, as
Colombia is the sixth largest user of the Panama Canal and a major buyer in our Colón free trade
WT/TPR/M/372 • Colombia
- 42 zone, where Panama's re-exports to Colombia reached one billion in 2017. Nonetheless, these
have contracted by 50% since 2013 as a result of the slowdown in the Colombian economy, the
depreciation of the peso, and unilateral measures implemented by Colombia, restricting goods
imports.
4.318. As is common knowledge among the WTO Membership, for over ten years now Panama
has had to resort to the dispute settlement mechanism on account of measures affecting Panama's
re-exports of apparel and footwear to Colombia. The various measures have ranged from
restrictions on ports of entry, indicative prices and compound tariffs exceeding the bound levels to
measures which take the form of special customs controls on these goods and whose consistency
with the relevant WTO Agreements is currently being examined by compliance panels.
4.319. Panama wishes to draw special attention to these customs control measures, imposed by
Colombia on imports of apparel and footwear under Decree 1745 of 2016, replaced by
Decree 2218, which appear to be inconsistent with this Organization's rules on customs valuation
and have also been challenged by other Members in the course of the proceedings.
4.320. It is our hope that once the compliance proceedings have been completed we will find a
solution to this dispute without further delay.
4.321. We congratulate the Colombian State for its active participation in the multilateral system
and especially for the major changes and efforts made in moving towards a market economy more
open to world, as well as Colombia's achievements on the security front. Although specific points
remain to be addressed, we view these endeavours and changes in a positive light.
4.322. Colombia has been, and will continue to be, an important trading partner for Panama. We
wish Colombia every success in this review and wish to highlight the admirable work of its
delegation in Geneva.
PERU
4.323. Peru and Colombia enjoy a very close relationship, rooted in geographical proximity and a
common historical and cultural tradition. For many years now, we have pursued like-minded
policies to promote economic integration with partners both within and outside the region, driving
our economies towards higher levels of competitiveness underpinned by vigorous economic
liberalization and a strong international reach. Accordingly, Colombia and Peru both firmly believe
that a rules-based multilateral trading system is a cornerstone of the global economy and provides
stability for international trade. In addition to this common vision, we are also members of the
Pacific Alliance, the Andean Community and LAIA, which enable us to boost regional trade and
productive linkages in the region and to export quality products to other continents.
4.324. As a result of all these endeavours, annual bilateral trade has grown in recent years. In
2017, trade between Peru and Colombia exceeded US$2 billion, a 14% increase over the previous
year. Peru's exports to Colombia have become more diversified, targeting the iron and steel,
chemical and agricultural sectors.
4.325. These efforts are also evidenced by policy and economic cooperation and coordination at
the highest level. One example is the holding of four Binational Cabinet meetings to date, in which
our Presidents reached decisions on a wide-ranging, cross-cutting common agenda that naturally
encompasses economic and trade matters.
4.326. At the WTO, we work as a team with a view to the adoption of effective disciplines on
fisheries subsidies; establishing commitments on domestic regulation in services; promoting
agricultural market liberalization within the CAIRNS Group; furthering the integration of small and
medium enterprises in international trade; and enhancing transparency and predictability among
Members in establishing maximum residue limits (MRLs) under the Agreement on the Application
of Sanitary and Phytosanitary Measures, among other important issues on the WTO agenda. We
also jointly support the dispute settlement pillar of the WTO and, generally speaking, the validity
and value of the multilateral trading system.
WT/TPR/M/372 • Colombia
- 43 4.327. In short, we are very much on the same page with Colombia. This is why we welcome the
successful achievement of domestic peace in Colombia, and the country's recent entry into the
Organization for Economic Co-operation and Development (OECD) – a goal towards which Peru is
taking major steps and which it hopes to reach in the near future. We also acknowledge and
encourage the reforms being implemented by Colombia to revive its economy, boost trade and
investment, consolidate its macroeconomic balance, and increase its level of export diversification.
4.328. Peru will continue to work in collaboration with Colombia, not only at the multilateral level
within the WTO but also in other relevant forums, further seeking to promote sustainable growth
and economic development for our countries. We look forward to pursuing and strengthening our
common journey towards economic integration and cooperation, within the Pacific Alliance and the
Andean Community as well as on a bilateral basis. On behalf of the Peruvian delegation, it only
remains for me to wish Colombia every success in its fifth trade policy review.
PAKISTAN
4.329. Pakistan and Colombia enjoy very good bilateral relations; however, in trade, the potential
is under-exploited. At the WTO, Pakistan and Colombia are jointly working in three groups; FEDs
and FIFD and Friends of MSMEs, and Ambassador Gonzalez is the coordinator of FIFD. His role as
FIFD coordinator is highly appreciated by Pakistan and all FIFD members.
4.330. During the review period, between the beginning of 2012 and the end of 2017, Colombia's
GDP grew at an average annual rate of 3.3% and growth is expected to pick up in 2018. During
the review period between 2012 and 2015, inflation did remain relatively low and stable at 30%.
The current deficit account has seen an improvement, it was at 4.6% of the GDP in 2016 and
stood at 3.3% in 2017.
4.331. Colombia has a diverse export mix of over 4,800 different products, but it remains heavily
dependent on exports of petroleum and petroleum products, which accounted for approximately
40% of its total exports in 2017, followed by coal, chemical products, coffee and flowers.
4.332. In the agricultural sector, Colombia boasts a relatively high degree of food sufficiency
despite the concentration of its exports, an estimated 85% of internal demand for food being met
by domestic production.
4.333. Colombia is implementing a strategy to diversify its export base accordingly; it is trying to
promote exports of services. Colombia's main trading partners are the United States, the European
Union, China, Mexico and Brazil.
4.334. Colombia is a founding Member of the WTO and has acceded to the Protocol amending the
Agreement on Trade-Related Aspects of Intellectual Property Rights and participates in the
Information Technology Agreement. Pakistan would encourage Colombia to ratify the TFA even
though Colombia has notified the WTO of its "Category A" commitments.
4.335. Pakistan appreciates that during the review period, Colombia adopted measures to
strengthen its intellectual property regime and adapt it to technological developments and to its
international commitments. At the same time, enforcement measures relating to trademark rights
were strengthened, a general enforcement strategy was developed.
4.336. Pakistan commends that Colombia has an open investment regime: foreign private
investment is allowed in all sectors, except where prohibited on security grounds. Foreign
investors may set up business through commercial companies and may have subsidiaries in the
country.
4.337. Colombia has been seeking to open up its trade regime, and since its last Review, it has
adopted a number of measures to modernize the legal framework and facilitate trade.
4.338. In the financial services area, foreign banks and insurance companies may establish
branches in Colombia, and since 2013, they may set up subsidiaries. Cross-border trade in
insurance has also been allowed since 2013. During the period under review, Colombia
strengthened the institutional framework for its financial system and telecommunications, giving
WT/TPR/M/372 • Colombia
- 44 increased autonomy to the Communications Regulatory Commission in the decision-making
process. Colombia has continued to liberalize the provision of air transport services. Companies
wishing to provide tourism services in Colombia have to be listed in the National Tourism Register.
4.339. In 2016 Colombia also adopted a new Customs Statute with a view to modernizing and
simplifying its regulations and harmonizing them with best international practices. In 2017, the
Colombian tariff contained 7,708 ad-valorem lines at the 2017 HS ten-digit level. The average MFN
applied tariff rate in 2017 was 7.1%. The average tariff for agricultural products (WTO definition)
was 15.4% in 2017, whereas the average tariff on non-agricultural products was 5.8%.
4.340. During the period under review, Colombian authorities continued to promote micro, small
and medium enterprises (MSMEs), by making them benefit from special tax regimes and financing
by the Colombian Fund for Modernization and Technological Development of MSMEs as well as
benefiting from mechanisms of financial and non-financial support provided by National Support
System for MSMEs.
4.341. In the end, we would like to wish Colombia a very fruitful and successful TPR.
RUSSIAN FEDERATION
4.342. The Russian Federation follows with great interest the economic performance of Colombia.
During the review period, Colombia's GDP grew at an average annual rate of 3.3%, which is quite
impressive. Despite somewhat slowdown in 2017 to 1.8%, growth is expected to pick up in 2018.
We are confident that the ambitious programme of reforms, which includes tax incentives,
reductions in tariffs and other taxes, changes in the investment regime, and increased investment
in infrastructure will contribute to this performance.
4.343. On 19 May 2018, Russia and Colombia celebrated an important anniversary, 160 years
since the establishment of interstate relations. On this day in 1858, the Emperor of Russia
Alexander II sent a letter to the President of New Granada (now Republic of Colombia)
Mr. Rodríguez with a proposal to establish friendly relations between our countries.
4.344. Colombia is an important and reliable partner for Russia in Latin America. Our relations are
built on mutual respect and trust. We enjoy the positive dynamics in the development of political
dialogue and multidimensional bilateral cooperation.
4.345. The volume of bilateral trade between Russia and Colombia more than doubled in 2017
and has reached US$464 million. According to our data, last year Russia's exports amounted to
US$352 million, while imports from Colombia reached US$113 million.
4.346. The main items of Russian exports are mineral products (in particular oil and oil products),
chemical products (mainly fertilizers), metal products, machinery and equipment. We import from
Colombia fresh cut flowers, coffee, tropical fruits, some mineral and chemical products.
4.347. Under these circumstances, our key task is to expand investment and cooperation in
non-primary and high-tech sectors. We proceed from the existing resource base in Russia and
Colombia, the capacity of regional markets, as well as the potential demand for certain types of
industrial products, services and technologies.
4.348. In particular, we note that Colombia directs significant efforts to the development of
transport infrastructure, and the Russian side is ready to act as a reliable partner in this process.
Our companies can quickly organize the supply of equipment for rail, sea and air transport, as well
as equipment for the repair of roads and railways. Russian business is aimed at participating in
shipbuilding enterprises, development of port infrastructure, modernization and equipping of
airports with modern air traffic control systems.
4.349. An important instrument for the progressive development of bilateral relations in the trade
and economic sphere is the Russian-Colombian Intergovernmental Commission on trade,
economic, scientific and technical cooperation established in July 1979. Its 6 th session took place in
Bogotá in April 2017.
WT/TPR/M/372 • Colombia
- 45 4.350. The development of bilateral trade and economic relations is facilitated by the ColombianRussian Chamber of Commerce established in 2008, which actively promotes direct contacts
between business persons of both countries.
4.351. During this TPR, the Russian delegation has not addressed any written questions to
Colombia. Should the need arise, we will be ready to discuss bilaterally.
4.352. To conclude, we look forward to work with Bogotá in order to expand our trade and
investment ties for mutual benefit. We wish the delegation of Colombia a successful Trade Policy
Review.
ISRAEL
4.353. At the outset, Israel is pleased to note that international trade has continued to play an
essential role in the Colombian economy, which has largely maintained an open trade regime and
has pursued liberal trade and investment policies, driven by a strong internal demand, economic
reforms, domestic expenditure and a flourishing services sector.
4.354. We note that during the period under review, the Colombian economy grew at an average
rate of 3.3% annually. The average MFN applied tariff rate in 2017 was 7.1%, around 49.7% of
lines were duty free, while 6.2% were subject to a rate exceeding 15%. The average tariff for
agricultural products was 15.4% in 2017, whereas the average tariff on non-agricultural products
was 5.8%. The highest average duties continued to be for dairy products, clothing, and animals
and animal products, with average tariffs of 55.1%, 40% and 20.3%, respectively. In addition to
tariffs, the VAT regime applied to imports continues as before on the same rates as for domestic
products.
4.355. Over the past few years, relations between Israel and Colombia have further strengthened
at all levels. The framework of the Israeli trade with Colombia includes various Cooperation
agreements on technical, institutional and commercial matters, as well as the Colombia-Israel FTA
-- which was concluded in 2013 and it is still in the process of ratification in Colombia. When
entered into force, the FTA will reduce or completely eliminate tariffs on industrial and agricultural
products and enable the business community to enjoy its benefits.
4.356. Israeli exports to Colombia include medical and communications equipment, machinery,
electronic and mechanical devices, monitoring, security and irrigation systems, and chemical
products. Colombian exports to Israel consist chiefly of extractive and agricultural products. The
annual average of the bilateral trade has reached USD $677 million during the period under review
with a balance in favour of Colombia. We look forward to the opportunity of informing Members
factually on the benefits of our FTA in due time.
4.357. I would now like to turn to certain aspects of the Secretariat and Government reports of
Colombia that are of particular interest to us and which have already been mentioned by some
speakers before me. Regarding non-tariff measures, although we welcome the serious legislative
harmonization effort Colombia has embarked upon, we remain concerned about the persistence of
non-tariff barriers mentioned in the Secretariat report, particularly those relating to registration
requirements, non-automatic import licensing and the high number of regulations in certain
sectors. In addition, we are interested in learning more about unilateral measures raising tariffs in
certain goods such as fertilizers.
4.358. At the same time, we are also interested in learning more details about Colombia's
investment subsidies and incentive programmes, such as Colombia Repunta. Equally, Israel as a
country immersed in efforts to reduce the cost of living, would like to know more about Colombia's
efforts to promote competition and reduce inflation.
4.359. At the multilateral level, Israel values Colombia's contribution to the WTO, where we have
shared values and supported common areas of interest in the DDA context. We have in addition
collaborated in various fora such as Friends of the System, and participated in plurilateral
initiatives such as the ITA expansion and TiSA. In the context of our collaboration, we take this
occasion to congratulate Colombia for recently becoming a member of the OECD.
WT/TPR/M/372 • Colombia
- 46 4.360. It is Israel's view that Colombia has stood firmly as a strong advocate of the multilateral
trading system during the period under review.
4.361. In closing, we would like to take this opportunity to once again extend our appreciation
and wish Colombia every success in this Trade Policy Review.
BENIN
4.362. The delegation of Benin would like to pay tribute to Colombia's efforts during the review
period 2012-2017.
4.363. The Colombian economy recorded annual growth rates of more than 4% between 2012
and 2014 before experiencing a decline in exports, particularly oil and other raw materials, and a
slowdown in domestic demand. GDP rose by 2% in 2016 and by 1.8% in 2017. These figures show
that Colombia withstood the fall in commodity prices in an environment marred by external
shocks.
4.364. The sound economic fundamentals of the Colombian economy are underpinned by an
orderly macroeconomic policy. The country ranks third in the Latin American and Caribbean region
in terms of both growth and ease of doing business.
4.365. The various structural reforms undertaken by Colombia to boost productivity, further
consolidate the country's main macroeconomic indicators, introduce export diversification
strategies, set sanitary standards, promote financial inclusion and introduce a tax reform, have
helped enhance its economic performance and build further trust among investors.
4.366. The positive trends in external trade, reflected by a 12% annual increase in services export
value between 2014 and 2016, are also worthy of mention.
4.367. As regards multilateral trade commitments, Colombia has signed the protocols on
telecommunications and financial services annexed to the General Agreement on Trade in Services
(GATS).
4.368. The delegation of Benin welcomes the decisive part played by Colombia in the Doha Round
of multilateral trade negotiations. In this connection, it wishes to express its deep appreciation to
the Ambassador and Permanent Representative of Colombia to the World Trade Organization
(WTO), H.E. Mr Juan Carlos González, and his staff, for their engagement and constructive role in
the WTO trade negotiations.
4.369. Among his other responsibilities, Ambassador González served as an excellent Chairperson
of the WTO Trade Policy Review Body in 2017.
4.370. The delegation of Benin is grateful to Colombia for the constructive support it provides for
LDCs, promoting their interests and priorities in the ongoing Doha Round negotiations.
4.371. It welcomes the trusting and cooperative ties between Benin and Colombia, which have led
to cultural exchanges, partnership in development between the C-4 and Colombia, and Colombia's
support in the WTO trade negotiations on cotton.
4.372. It hopes that the efforts, initiatives and reforms undertaken by Colombia will continue,
delivering outcomes in support of inclusive sustainable development in the short, medium and long
term.
4.373. The delegation of Benin thanks the WTO Secretariat and the Government of Colombia for
their highly informative reports relating to the current trade policy review of Colombia.
4.374. It wishes Colombia every success and a productive trade policy review.
WT/TPR/M/372 • Colombia
- 47 PARAGUAY
4.375. The steady growth in GDP over the review period and the Colombian authorities' strong
commitment to their reform programme bode well for the future. It is encouraging for a country
such as Paraguay to see how the Colombian Government has overcome obstacles, achieving peace
and building an equitable and educated economy aligned with international best practice and
standards. We congratulate Colombia on joining the Organization for Economic Co-operation and
Development.
4.376. The setting of targets, continuous improvement of indices and the environment for doing
business, financial inclusion, and poverty reduction should lead to sustainable development. Signs
of diversification of the export base and in the sectors receiving foreign investment, along with the
success achieved in terms of non-traditional exports, could well boost a structural transformation
of the Colombian economy.
4.377. On the other hand, there are still challenges to overcome. The setback caused by the fall in
oil revenue has affected the country's finances and hence its risk rating. This suggests the need to
step up diversification efforts and to continue working towards greater competitiveness and
productivity.
4.378. With respect to the latter, it is necessary for the reform process to continue focusing on
market-based solutions. Mechanisms such as the price band system, especially as applied to
certain agricultural products, provide producers with artificial protection, entail additional costs for
consumers and affect the transparency and predictability of foreign trade.
4.379. I should highlight the excellent bilateral relations between my country and Colombia, not
only in the economic sphere, but also at the political, social and cultural levels. We are two
neighbouring countries united by history. Solidarity between the Colombian and Paraguayan
peoples is well known and widely recognized by Colombians and Paraguayans alike. A range of
joint cooperation projects are under way in all areas.
4.380. At the WTO, we work in coordination on various issues and share a strong interest in
promoting agricultural reform. The delegation of Colombia has been proactive and is a staunch
defender of the multilateral system. We are grateful for the cooperation we have been receiving
from that delegation for many years now.
4.381. Economic and trade relations between the two countries are governed by the long-standing
MERCOSUR-Andean Community Economic Complementarity Agreement, under which we are
seeking to deepen complementarity and promote regional integration. In this connection,
Economic Complementarity Agreement (ACE) No. 72, signed between MERCOSUR and Colombia in
July 2017, contains further specific provisions concerning industrial goods such as textiles,
made-up articles, metal-mechanical products and vehicles, and will help boost economic relations.
4.382. Trade between Colombia and Paraguay is significant albeit still well below potential.
Colombia's main exports to Paraguay include industrial goods and pharmaceuticals, while
Colombia's leading imports from Paraguay are pharmaceuticals, cotton and meat products.
4.383. I would like to offer renewed congratulations to those leading this review and to the
delegates from the Permanent Mission of Colombia in Geneva for their invariably active
involvement in the different areas of the WTO's work.
WT/TPR/M/372 • Colombia
- 48 5 REPLIES BY THE REPRESENTATIVE OF COLOMBIA AND ADDITIONAL COMMENTS
5.1. I should like to begin this second session by thanking both you and the Secretariat for your
outstanding commitment and constant support during the conduct of our fifth trade policy review.
I likewise thank all Members of the Organization for their active participation, the questions
received, the comments and recommendations made and the high level of attendance, all of which
testifies to the importance of this exercise in transparency. I should also like to extend particular
recognition to Ambassador José Luis Cancela for his sound analysis and recommendations in
regard to our policies and programmes.
5.2. For me personally and for my delegation it was especially meaningful to listen to Members of
this Organization last Tuesday when reference was made to the peace process and to Colombia's
accession to the OECD.
5.3. The importance we accord within our country to these two milestones in our recent history
becomes even greater with the realization that these events extend beyond our national
boundaries, given the significant impact they are sure to have on the future of Latin America.
5.4. We bear a great responsibility as we address the tremendous challenges of this post-conflict
phase while continuing to strive for the highest standards in our public policies. What is certain is
that a peaceful context will afford us more space within which to devote our energies to other
priority areas such as education, innovation and enhanced competitiveness.
5.5. This new Colombia will continue to advance along the path of development, its trade policy
playing a central role in achieving our ultimate ongoing objective of eliminating poverty and
improving the quality of life of our citizens.
5.6. As we mentioned last Tuesday, today more than ever we need the multilateral trading system
to ensure a context within which we can maximize our potential as a world food supplier.
5.7. For this reason, considerations such as enhanced transparency and predictability in the
establishment of maximum residue limits will be a key factor in seizing the opportunities that have
been created with the strategy of international market integration.
5.8. At the same time, we hope that our steel and aluminium exporters, which have been affected
by recent unilateral measures, will be able in the very short term to recover the preferential access
which in many cases gave rise to significant investment that is now threatened by circumstances
entirely beyond their control. We are likewise concerned about the announcements that have been
made regarding auto parts and the measures that might be taken in that regard.
5.9. Regarding the comments by Ambassador Cancela, to whom we reiterate our gratitude for his
contribution to this review, we should like first to address the question of export diversification. We
are on the right track because we have succeeded in reversing the tendency to concentrate on
mining/energy exports and have this year continued to post positive results.
5.10. The latest figures, reflecting performance from January to April of this year, reveal that total
exports rose by 16.6%, while exports of manufactures achieved an increase of 22.4% over the
same period the previous year.
5.11. These results are the fruit of the measures taken to derive greater benefit from the trade
agreements in force. In addition to improving the supply conditions, we have stepped up our
dealings with the health and technical authorities of the new markets in the interests of securing
speedy and efficient access for our main export products.
5.12. We would also like to highlight two key strategies which are currently being pursued by
Colombia and which were the subject of questions from a number of Members interested in
learning about the corresponding goals and objectives.
5.13. The first of these, known as Alianzas Agroexportadoras (Agro-Export Alliances), is the result
of a consolidated effort between the authorities responsible for foreign trade, agriculture and
WT/TPR/M/372 • Colombia
- 49 inspection, surveillance and sanitary control, in the interests of boosting the share of agricultural
exports in our total external sales.
5.14. Under this initiative, we are developing 29 projects aimed at enhancing the quality,
productivity and marketing of exportable agricultural products including cocoa, palm oil, tropical
fruits and fish farming products. A good proportion of the projects will be implemented in the most
conflict-affected areas, bringing the benefits of international trade to the communities whose need
is greatest.
5.15. Also, as part of the National Productive Development Policy approved in August 2016, the
Government has developed a range of tools designed to build the capacity of enterprises, including
MSMEs, to innovate, adopt an entrepreneurial approach and to absorb and transfer knowledge and
technology.
5.16. To conclude this first part relating to general considerations, I should like to refer to the
country's macroeconomic situation, taking into account the comments made by the Discussant.
5.17. Since Colombia's last trade policy review in June 2012, the country's economy has
experienced a number of adverse events, both external and internal, that have threatened its
macroeconomic balance.
5.18. Since mid-2014 the abrupt fall in international raw material prices, particularly oil, coal and
other mining goods, provoked a deterioration in the terms of trade and a consequent drop in
national revenue.
5.19. This situation coincided with an economic slowdown among our main trading partners which
had a negative effect on our exports. All of this, compounded by a reduction in the food supply due
to an adverse climatic event in mid-2015, slowed economic growth and pushed up inflation levels.
5.20. The Colombian economy absorbed these adverse shocks through the depreciation of its
currency, the implementation of a tax reform aimed at compensating for the loss of oil revenue,
and moderate interest rate increases to curb inflationary pressures.
5.21. Colombia's handling of this situation confirms once again that its macroeconomic policies are
rooted in prudent management and include important tools for countering external shocks. The
country's economy achieved an orderly adjustment thanks to the timely response of the monetary,
exchange and fiscal authorities, in the latter case in line with the fiscal rule, deemed positive by
the Discussant.
Thematic aspects
5.22. Let me now turn to some of the specific points raised by Ambassador Cancela and by
Members, both in their statements and in their questions. I shall focus on recurring issues, since
we have replied to all of the concerns expressed.
5.23. Regarding the concerns as to difficulties and delays with regulatory changes and the entry
into force of the Trade Facilitation Agreement and other international commitments, it is important
to be aware that Colombia's domestic procedures, in addition to requiring the approval of
two authorities, namely the Congress and the Constitutional Court, have been subject to additional
delays owing to the priority accorded to the instruments for implementing the peace agreements.
We are confident that that situation will soon have been resolved.
5.24. In response to the comments regarding regulation, I would note that during the process of
our accession to the OECD, and on the recommendation of the Committee on Public Governance,
the National Government took the following measures:
1. Standardization of the period of public consultation for all decrees to 15 days.
2. Guide on the conduct of public consultations as part of the law-making process.
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- 50 3. Development of a single platform for public consultation on regulatory drafts issued by
ministries and administrative departments.
4. Elimination of some 1,300 processes in order to simplify life for citizens, and establishment
of the Regulatory Improvement Group.
5.25. With the implementation of these changes we are confident that the business climate in
Colombia will improve even further and that a higher degree of legal certainty will be afforded to
domestic and foreign entrepreneurs.
5.26. Where maritime services are concerned, we take note of the interest expressed by Members
in regard to cabotage services. In the area of financial services, last May saw the publication of the
draft decree and of the supporting documents for the regulatory proposal that should complete our
alignment with Basel III.
5.27. As regards telecommunication services, we share information on Colombia's comprehensive
strategy for development of the digital economy, seeking to ensure that the country leads the
region in the development of information technology-based industries through, among other
things, the implementation of strategic actions to improve the institutional framework, and the
development of a policy on digital content, talent and digital security, among other things. We also
explain in detail the rules of competition that apply within this sector.
5.28. We reiterate the fact that Colombia is committed to respecting intellectual property rights at
both regional and multilateral level. We have ratified the main treaties in that regard, and in some
areas our domestic legislation affords higher levels of protection than those provided for in the
WTO Agreements. In recent years, Colombia has been working to improve enforcement, build
institutional capacity and promote intellectual property as a driver for development.
5.29. The Colombian State respects intellectual property rights, and frames that respect within
the principles of fairness, reasonableness and balance between holders' rights and the public
interest. We are therefore adopting into our domestic legislation the limitations and flexibilities
provided to us by the multilateral environment, in all cases within the domestic and international
framework and in line with the country's bilateral commitments.
5.30. Thus, Colombia identified the need to clarify the concept of declaration of public interest for
compulsory licensing purposes and therefore issued a regulation to the effect that the sole purpose
of this procedure is to determine whether or not a compulsory licence should be granted in respect
of patented products or processes.
5.31. On the matter of investment, we thank you for your comments regarding the level of
openness of Colombia's legislation and the significant reforms adopted during the review period.
5.32. We wish to refer especially to the comments that a number of Members made in regard to
the need to reduce tariff protection in the agricultural sector. In this regard, it should be noted
that Colombia has continued to play an active role in the agriculture negotiations aimed at
achieving substantial progressive reductions in domestic support and tariffs. From the
Cairns Group and with other Members we have co-sponsored a number of technical and
negotiating documents. We reiterate our commitment to the achievement of progress in various
pillars.
5.33. Some countries pointed out that Colombia continues to maintain measures that impede
trade, such as import prohibitions, non-automatic licensing for a considerable number of goods,
and complicated registration procedures.
5.34. It should be clarified in this regard that import prohibitions and non-automatic licensing are
applied for the protection of human, animal and plant health, public morals, the environment and
national security.
5.35. The registration requirement for the importation of goods into Colombia does not constitute
an additional requirement. It arises when a government authority has to certify compliance with a
sanitary or technical requirement. The procedure has been streamlined by means of the Single
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- 51 Window for Foreign Trade, which groups together over 135 procedures that were previously
handled by 21 different entities. Non-automatic licensing, for its part, is applied to only 2.4% of
tariff lines covering goods which, by their nature, require special controls.
5.36. I should like to turn now to a number of customs policy matters that were the subject of
questions and comments from various Members.
5.37. The first of these concerns the fulfilment of commitments under the Agreement on Trade
Facilitation, which Colombia placed in category A and which will become a requirement once it has
ratified the Agreement before the WTO. In this regard, it should be mentioned that, within the
context of our customs modernization strategies, in addition to amending the legislation we have
made progress on strengthening the risk management system by evaluating the behaviour of
foreign trade operators and through the comprehensive automation of the operations in question.
5.38. Notwithstanding the extension to November 2019 of the time-frame for full implementation
of the new customs regulations, we have made progress on the most relevant processes. We will
shortly be testing processes relating to freight, customs transit, express delivery and courier
services, and in the latter part of the year we intend to complete work on the customs clearance
process, thereby covering 60% of the operations provided for in the customs legislation.
5.39. Furthermore, certain provisions have now come into effect, such as those relating to
international logistical distribution centres; advance rulings; origin verification processes;
preshipment inspection; reshipping; laboratory testing; the option of not using a customs broker
to carry out customs operations; application for reconsideration; publication and availability of
information; risk management; approved exporter and benefits for authorized economic operators.
Some of these form part of the Trade Facilitation Agreement.
5.40. With respect to the comments by one delegation regarding the use of reference prices,
which the delegation described as prohibited where customs valuation is concerned, it is to be
noted that Colombia applies them by virtue of the reasonable means provided for in Article 7 of
the WTO Agreement on Customs Valuation. In the same vein, the WCO also views reference prices
as a component of the risk management system.
5.41. The tariff and customs measures for imports of apparel and footwear, which are clearly
explained in the Secretariat report, are being examined by a panel, and for this reason we prefer
not to make any further comments within this forum. At the same time, however, we would call for
enhanced cooperation between customs authorities on the exchange of information at the different
stages of control of the entry and exit of goods in each country.
5.42. We have come to the end of this fifth trade policy review with a feeling of satisfaction at the
recognition and confidence that Members have expressed in the economic policies and reform
programmes we have undertaken.
5.43. We are pleased to note that many Members highlighted the fact that, despite the
challenging international economic circumstances, Colombia's economy has continued to perform
positively.
5.44. We are encouraged by the constructive spirit of the recommendations made by the
Discussant and by Members. Our country is unquestionably engaged in an ongoing process of
transformation, in which numerous policies have to be consolidated and strengthened. Both the
implementation of the Peace Agreement and the current global economic context present us with
many challenges and tasks. You may rest assured that we shall remain firm in our commitment to
improving our policies and practices.
5.45. We are pleased to note that Members have recognized Colombia's commitment to a stable,
transparent and rules-based multilateral trading system. We once again express our gratitude to
the Secretariat for the support provided, and our special thanks to the interpreters for their work.
5.46. Finally, our first Nobel prize winner, Gabriel García Márquez, said: "I believe it is not yet too
late to construct a utopia that allows us to share the earth".
WT/TPR/M/372 • Colombia
- 52 5.47. It is not too late … Colombia achieved peace.
5.48. It is not too late … Colombia is building a society with more openings for women.
5.49. Nor, indeed, is it too late for dreaming about a utopia in which Colombia can win the
World Cup that kicks off today. Thank you.
DISCUSSANT
5.50. I should like to begin by congratulating the Vice-Minister of Foreign Trade of Colombia,
Mrs. Olga Lucía Lozano, and her delegation on the success of this fifth trade policy review, as was
clearly evidenced by the 39 statements delivered last Tuesday, 12 June, and by the questions
submitted by Members, the number of which exceeded by far the number of days in a year.
5.51. It is also worth recalling that attention was drawn to the importance of the Peace Agreement
in Colombia and of the dividends it is already beginning to yield, and that Colombia was
commended for its strong commitment to the rules-based multilateral trading system, to trade
liberalization and to the wide-ranging reform process in which it is engaged.
5.52. Without prejudice to what has already been stated, I would like to point out that in the
course of the presentations made during the first session, Members were particularly clear on,
among other things, the following:

They highlighted the need for greater export diversification.

They noted the desirability of imparting more transparency and stability to the environment
of the legal and regulatory provisions governing economic and trade matters, and also
expressed the view that the task of reforming the licensing system should continue.

They stressed the need to submit outstanding notifications, particularly in regard to
agriculture.

They mentioned the need to make changes in the schedules in order to implement the
Nairobi Ministerial Decisions.

They underlined the need to continue with the process of simplifying and standardizing the
regulatory framework and with the reform, and to make the licensing regime more
transparent.

They highlighted the increasing number of anti-dumping investigations in relation to the
previous trade policy review, pointing out that that tool should be used in moderation.

A number of delegations underscored their concern at the use of reference prices for
customs valuation and at certain customs control procedures.

Concern was also expressed at the import restrictions that could result from the
Andean Price Band System.

A number of Members invited Colombia to become a full member of the WTO Agreement on
Government Procurement.

Members affirmed the significance of the road taken by Colombia towards implementation of
the Trade Facilitation Agreement and emphasized the need to proceed to final ratification.

The importance of Colombia's accession to the OECD as its 37th Member was highlighted.

Attention was also drawn to the country's positive international integration through the
Pacific Alliance, and through the negotiation, signing and entry into force of new free trade
agreements.
WT/TPR/M/372 • Colombia
- 53 
Colombia's legislation and programmes relating to MSMEs was highlighted.
5.53. Finally, the work of the Permanent Representation of Colombia to the WTO was
commended, as was that of Ambassador Juan Carlos González as Chairperson of the Trade Policy
Review Body during 2017.
5.54. To conclude, I would like to acknowledge the fact that the Vice-Minister of Foreign Trade
has just responded thoroughly and comprehensively to the concerns raised by Members in the
previous session, having also pointed out that Colombia replied to all the advance written
questions. I once again congratulate the Vice-Minister and her delegation, as well as the
delegation in Geneva, on their participation and on the success of this trade policy review.
EUROPEAN UNION
5.55. Let me first thank the Colombian delegation for the comprehensive overview of the recent
economic developments in Colombia presented on Tuesday and this morning that provided a good
opportunity to gain a better understanding of the main developments occurred during the period
under review and to assess the trade and investment climate based on the comments of a large
number of Colombian trading partners.
5.56. The EU would like to congratulate Colombia on its progress in implementing the peace
agreements which will further sustainable economic development. Furthermore, the EU would like
to highlight that the EU-Colombia Trade Agreement contributed to a diversification of Colombia's
economy as the share of mineral products in its exports decreased from 73% in 2012 to 46% in
2017 and we have also taken good note of the efforts Colombia is pursuing in this regard.
5.57. The EU is confident that this review will help Colombia to adopt the appropriate measures in
order to overcome some of the issues that are considered as a concern by several Members. In
particular, the EU would like to underline once more its encouragement to cut red tape and
procedures for effectively accessing Colombia's market, to simplify the overly complex taxation
regime, and to eliminate the most distorting technical barriers to trade. We have again taken good
note of the statement this morning.
5.58. The EU appreciates the timely and exhaustive replies provided to the EU questions by
Colombia. Nevertheless, we have submitted a few follow-up questions and look forward to their
replies in due time.
UNITED STATES
5.59. The delegation of the United States would like to express its appreciation to Deputy Minister
Lozano for her excellent stewardship at Colombia's fifth trade policy review, to Ambassador
Cancela for his insightful remarks which helped guide us through the review and the excellent
efforts and contributions of Colombia's Geneva Mission and officials in Bogotá in providing
responses to Members' questions, and to the Secretariat staff for their hard work in preparing the
policy review documents that made our discussion possible.
5.60. The large number of questions from Members highlight the keen interest we have in trade
related developments in Colombia. In particular, we appreciate the remarks this morning
acknowledging our and other Members' interest in gaining further clarity in Colombia's efforts to
diversify its economy, the status of Colombia's TFA ratification, Colombia's use of non-automatic
licensing and burdensome and costly import procedures.
5.61. We thank Deputy Minister Lozano for her remarks today and her efforts to address the
comments offered by Members during this review.
5.62. The United States submitted a number of written questions to Colombia and we appreciate
the written responses we have received. These responses will be helpful to us as we continue our
engagement with Colombia, bilaterally and here at the WTO. We also submitted some follow-up
questions to clarify some of Colombia's earlier responses. We look forward to Colombia's written
responses to those follow-up questions.
WT/TPR/M/372 • Colombia
- 54 5.63. However, as the United States noted in its opening statement on Tuesday, we remain
concerned that many of the provisions of the 2016 customs statute are not yet implemented and
that Colombia is delaying implementation on many of the provisions, according to the Secretariat
report by 15 months until November 29. If possible, we would appreciate it if Colombia could
provide a more detailed status update today on its efforts to implement that customs statute and
what efforts it could contemplate making to accelerate implementation.
5.64. In conclusion, we appreciate the opportunity to participate in Colombia's trade policy review
and reiterate our commitment to support your reform efforts however we can. We offer our
congratulations to Deputy Minister Lozano and the entire delegation on a useful and successful
Trade Policy Review.
MRS. OLGA LUCÍA LOZANO (HEAD OF DELEGATION)
5.65. Thank you, Mr Chairperson. I should like to thank the European Union and the United States
for their statements, and to reiterate our gratitude to the Discussant for his work and for his
comments with respect to Colombia's trade policy.
5.66. I shall be very brief. Most of the matters to which you have referred will be addressed in our
follow-up responses to the questions we have received.
5.67. On the matter of streamlining procedures, where we understand there to be some concern,
we would like to point out that Colombia is implementing a policy known as Menos Trámites Más
Simples (Fewer formalities with less red tape), the aim of which is to analyse the steps involved in
a range of procedures in Colombia with a view to their simplification. We hope that in the coming
months we will have results in the form both of executive and congressional instruments.
5.68. As regards notifications, which have also been mentioned, we undertake to effect the
notification arising from the Nairobi commitments during the course of this week.
5.69. Where the subject of customs is concerned, we remain very keen to facilitate trade. The
only reason why our customs provisions are being implemented gradually is because of the need
to upgrade computer systems, and we are sure that we will be able to comply both with our trade
facilitation commitments and with our commitment to make import and export procedures
increasingly simple.
5.70. I reiterate our thanks to Members for the manner in which they participated in this trade
policy review. Thank you.
WT/TPR/M/372 • Colombia
- 55 6 CONCLUDING REMARKS BY THE CHAIRPERSON
6.1. This fifth Trade Policy Review has allowed us to deepen our understanding of Colombia's
trade and investment policies, and in particular, of the several reforms and changes introduced
since the last Review in 2012. I would like to thank the Colombian delegation headed by Mrs. Olga
Lucía Lozano, Vice-Minister of Foreign Trade, for her very constructive engagement throughout this
exercise. I would also like to thank our discussant, Ambassador José Luis Cancela, Permanent
Representative of Uruguay to the WTO, for his interesting and insightful remarks, as well as the
39 delegations which took the floor the first day, for their active participation in this review.
6.2. Colombia was praised for its commitment to trade liberalization and for achieving economic
growth during the review period, with real GDP expanding at an annual average rate of 3.3%
between 2012 and 2017, while maintaining a relatively low level of inflation. Members also
commended Colombia for implementing an economic reform programme that included tax
incentives, reductions in tariffs and other taxes, improvements in the investment regime and
increased infrastructure investment. Members encouraged Colombia to continue its reform efforts.
Colombia was also congratulated for its recent signature of an accession agreement to the OECD,
which was seen as further proof of its commitment to structural reforms and adherence to high
international standards.
6.3. Members also welcomed Colombia's signature of an internal peace agreement in 2016 that
was considered an essential foundation for the country's stability and future economic and social
development.
6.4. While commending Colombia for these achievements, Members also noted the challenges
remaining in some areas, including the need to step up efforts to diversify the production and
export base, and simplify the regulatory framework, as well as alleviating poverty and promoting
social inclusion, particularly in rural areas.
6.5. Members acknowledged Colombia's strong commitment to the rules-based multilateral
trading system and its active participation in the WTO. In particular, they praised its leadership as
coordinator of the Joint Statement Initiative on Investment Facilitation for Development; its
contribution to the negotiations on agriculture and on fisheries subsidies; and the Colombian
Ambassador's excellent recent chairmanship of the TPRB, H.E. Ambassador Juan Carlos González.
It was also noted that Colombia was a signatory to the MC11 initiatives on e-commerce, domestic
regulation in services, SMEs and women's economic empowerment. Noting that Colombia was still
in the process of ratifying the Trade Facilitation Agreement, Members urged it to conclude its
procedures to accept the TFA as soon as possible. The Representative of Colombia stated that this
would be done by the end of 2018. Some Members also encouraged Colombia to put up to date its
WTO notifications in areas such as domestic support in agriculture, import licences, subsidies, and
services, and to submit the required changes to its schedules to implement the Nairobi Ministerial
Decision to eliminate export subsidies in agriculture.
6.6. Members noted that, during the review period, Colombia had also actively pursued regional
integration and the conclusion of free trade agreements, including the Pacific Alliance and other
bilateral and regional agreements with key trading partners.
6.7. Members expressed their appreciation for the recent measures adopted by Colombia aimed at
improving its investment regime, which were seen as providing new opportunities for foreign direct
investment. Interest was also expressed with respect to the financial and non-financial incentives
provided for Small and Medium Enterprises.
6.8. It was acknowledged that since the last Review, Colombia had adopted a number of
measures to modernize its legal framework and facilitate trade. For example, the strengthening of
the Single Window for Foreign Trade, the implementation of a risk management system and a
simultaneous inspection system for containerized cargo, the introduction of an Authorized
Economic Operator scheme, and the promulgation of a new Customs Statute. However, some
Members noted that a number of provisions of the Customs Statute had not yet been
implemented. Overall, Colombia was encouraged to improve the implementation and enforcement
of legislation and to increase efforts towards regulatory transparency.
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- 56 6.9. Members appreciated that Colombia has a relative open trade regime with an average MFN
tariff of 7.1% in 2017. However, they expressed concern over certain areas and invited Colombia
to address them. These include: the widespread use of registration and import licensing
requirements; the use of reference prices for imports of textiles, clothing and footwear; taxation
rules on beer; complex customs procedures; certain labelling requirements; and the scraping
scheme for trucks. Members also noted the increased use of trade contingency measures, in
particular the greater number of antidumping investigations initiated during the review period.
6.10. Members acknowledged the changes introduced by Colombia to improve efficiency in
government procurement, and invited Colombia to consider becoming a party to the GPA in light of
the importance of this sector to its economy.
6.11. Colombia was also commended for the improvements made to its framework for the
protection of intellectual property rights (IPRs) since the last review. However, some Members
highlighted the need for a transparent and accountable implementation of the IPRs provisions
related to pharmaceuticals in the National Development Plan; others stated that they would
monitor the implementation of rules relating to the use of compulsory licences.
6.12. Some Members praised Colombia for playing an active role in pursuing agricultural policy
reform, while others noted that imports of agricultural products face higher tariffs than imports of
non-agricultural products. Some concerns were expressed regarding the effect of the Andean Price
Band System and Sanitary and Phytosanitary requirements on trade flows.
6.13. Members commended Colombia for maintaining an open services regime. Some referred in
particular to improvements in the telecommunications sector; others highlighted progress made in
air connectivity and the efforts to promote tourism, which had produced some good results.
Colombia's open regime in maritime transport was also welcomed. In the energy sector, Colombia
was invited to continue its efforts to reduce fossil fuel subsidies.
6.14. Colombia has provided answers to almost all the 370 advance written questions raised by
Members. This TPR will be successfully concluded once Colombia has replied to all outstanding
questions that emerged during the meeting in a month's time as it is the practice. I believe
Members felt heartened by the reforms undertaken and the good results achieved by Colombia
and encouraged it to persevere in that path and address the remaining challenges. I hope that the
discussion held during this review will prove useful to Colombia in the continued implementation of
economic and trade reforms and in its pursuit of policies to achieve sustainable growth and
increase competitiveness.
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