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Country facts
| Capital city: |
Bogotá |
| Surface area: |
1,139,000 sq km |
| Population: |
46.8 million |
| Official language(s): |
Spanish |
| Head of State & Head of Government: |
H.E. President Dr Álvaro Uribe Vélez |
| Australian exports to Colombia: |
A$29 million |
| Australian imports from Colombia: |
A$22 million |
| Colombia's principal export destinations: |
USA, Venezuela, Ecuador |
| Colombia's principal import sources: |
USA, Mexico, China | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Economic climate
The current government has reduced public debt levels, improved security and adopted an export-oriented growth strategy, resulting in a growing sense of confidence in the economy, particularly within the business sector.
The principal agricultural activities are cattle raising and coffee growing. Resources, particularly oil and coal, is the most export-oriented activity, making up about two-fifths of total exports and representing 4.5 per cent of GDP.
Construction is a major employer of unskilled labour. Financial services represent almost 18 per cent of GDP while retail commerce, dominated by the supermarkets in large cities, represents around 11 per cent of GDP.
Telecommunications has been one of the most dynamic sectors in Colombia in recent years.
Key economic indicators and statistics for 2007:
- GDP – US$171.7 billion
- GPD per capita – US$3,614
- Real GDP growth – 6.6 per cent
- Inflation – 5.5 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Political climate
Álvaro Uribe, an independent liberal with hardline views on law and order, first took office as President in August 2002 and was re-elected in May 2006. He has pushed through fiscal reforms and launched an effective assault on the drug trade and the guerrillas that support it. Uribe will remain in power until 2010. He is expected to continue the disciplined macroeconomic policies initiated during his first term aimed at improving public finances, reducing inflation and boosting growth.
The election also gave him a strong public mandate for his tough policies on security and drugs. Relations within the region and particularly with the USA are likely to remain Colombia’s foreign policy priorities. The strong relationship with the USA has delivered significant political and economic benefits, but an FTA negotiated with the US has not yet been approved by the US Congress.
The Uribe Government has invested much political capital in its strong alliance with the US. Colombia is also increasingly focusing on strengthening relations and seeking economic opportunities with the broader Asia Pacific region.
Colombia will be re-opening its Embassy in Canberra in April 2008.
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Trade relations and statistics
Australia’s trading connections with Colombia are steadily increasing. Australia enjoys good commercial relations in the mining, energy and education sectors, and there is long-term potential for investment in agriculture, mining and telecommunications.
Colombia has actively pursued a policy of regional integration, signing several multilateral and bilateral free trade agreements, including the Andean Community (ANCOM), the G-3 (Colombia, Mexico, and Venezuela), the Colombia-Chile bilateral agreements, and most recently the FTA with the USA. Colombia is also seeking to increase its role in the Asia-Pacific region, and is a full member of the Pacific Basin Economic Council (PBEC) and a member of two APEC working groups.
Colombia is the sixth-largest exporter in Latin America, and the second-largest in the Andean Community, which comprises Peru, Bolivia, Ecuador and Venezuela.
Industrial products accounted for more than 44 per cent of Colombia’s total exported goods in 2004, compared with 20 per cent in 1980. Industrial products showing the greatest increases include textiles and apparel, plastics, chemicals, paper, processed leather and food products.
Colombia has realised the importance of linking its prosperity to the global economy. Trade barriers have been cut for several products, except mainly agricultural products and automobiles, direct subsidies to exporters and domestic producers have been eliminated, and equal treatment has been granted to foreign and domestic investors.
Major Australian exports to Colombia (2006-07):
- Toys, games and sporting goods – A$6 million
- Electrical equipment for circuits – A$3 million
- Specialised machinery – A$1 million
- Mechanical handling equipment – A$1 million
Major Australian imports to Colombia (2006-07):
- Coffee and coffee substitutes – A$11 million
- Insecticides, rodenticides, herbicides – A$1 million
- Toys, games and sporting goods – A$1 million
- Cereal preparations – A$1 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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