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COLOMBIA A Strategic Ally for International Business Owners December 2011 OUTLINE Who We Are Latin America, the world's source of development "The world is talking about Colombia" Why invest in Colombia? Legal Framework, benefits
December 2011
Who We Are Latin America, the world's source of development "The world is talking about Colombia" Why invest in Colombia? Legal Framework, benefits and support to invest in Colombia
EXPORTS
Information tailored to your needs.
Contacts with the public and private sectors. Itinerary planning and assistance for travel to Colombia. Assistance during the installation process and monitoring of established investors. All services are free of charge and the information provided during the process is kept confidential.
New York Panama
Peru Brazil Mexico United States Canada Reino Unido Germany
Russia
Spain France Turquey Arab Emirates
Singapore
8 REGIONAL OFFICES 9 NOVELTIES
18 BUSINESS OFFICES
PROEXPORT'S GLOBAL PRESENCE
Shanghai
The largest economies in a crisis
…where the emerging economies are becoming their strategic allies
North America Latin America Middle East and Sub-Saharan Africa Asia and Australasia Western Europe
+51% +5%
+126% +20% +148% +20% +112% +16%
+87% +0% (LT): Long-Term: Nominal GDP Variation 2000 - 2010
Latin America is the second-highest growing region in the Short-Term (ST) and third-highest in the Long-Term (LT)
(ST): Short-Term: Nominal GDP Variation 2009 - 2010 ST LT ST LT ST LT ST LT ST LT
+470% +21%
ST LT
Russian Federation Source: EIU
Latin America will continue to increase its nominal GDP, always ranking higher than Russia, the Middle East and sub-Saharan Africa.
1000 2000 3000 4000 5000 6000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Proy. 2011 Proy. 2012 Proy. 2013 Proy. 2014 LATINAMERICA MIDDLE EAST AND SUB-SAHARAN AFRICA RUSSIAN FEDERATION
NOMINAL GDP (US $ Billions) 2000 – 2014*
+126%
Source: EIU
126% 74% 18% 10% 7% 6% 5% 4% 2% LATINAMERICA BRAZIL MEXICO COLOMBIA CHILE VENEZUELA PERU ARGENTINA ECUADOR
Countries' contribution to the growth of the GDP in Latin America 2000 – 2010 (+126%)
(%) Share of the GDP Source: EIU +224% +54% +189% +170% +107% +188% +30% +264%
Variation 2000 - 2010
7% 5% 47% 8%
3% 1%
5%
23%
Although Argentina represents a larger share of Latin America's GDP, its growth was lower than Colombia's
,0 50,0 100,0 150,0 200,0 250,0 300,0 350,0 400,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011p 2012p
Chile Colombia Peru Venezuela
Source: EIU - June 2011 P: Forecasts
South America's GDP between 2000 and 2012*
US $ Billions
Colombia's historic GDP trends are greater than Chile and Peru and were ranked higher than Venezuela in 2009
Steady performance is expected in the country's
growth compared to the rest
Performance higher than Latin America and the World is expected over the next few years.
Source: ANDI (National Business Association of Colombia), EIU
00 02 04 06 08
Colombian growth Latinamerican growth World growth
Growth of Colombia's GDP vs. Latin America 2001 - 2010 (%)
4,0 6,1 5,4 3,3 5,7 5,7 7,6 7,7 7,6 6,3 6,1 7,5 5,2 5,5 3,6 0,1 1,0 0,8 1,0 3,0 4,0 4,7
3,3
5,1 4,7 5,1
7,7
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III
GDP Variation (%) 2005 – III TRIM 2011
2005 2006 2007 2008 2009 2010 2011 Fuente: DANE
“”Mining and household consumption were the two drivers of economic growth”
Colombian Finance Minister: Juan Carlos Echeverry
Source: EIU (Economist Intelligence Unit) (10 Oct 20)
Colombian economy: larger than that of Chile, Ireland, Malaysia, Egypt, Singapore and New Zealand, among others
289 242 238 229 224 223 218 214 207 203 196 154 140 138 130 104 92 36
Nominal GDP US $ Billions - 2010
437 417 383 352 348 342 327 277 277 259 259 229 220 188 173 121
GDP (PPP) US $ Billions - 2010
Note: GDP adjusted to prices at purchasing power parity (PPP) Source: EIU (Economist Intelligence Unit) (October 10, 2011)
Colombia: 28th strongest economy in the world adjusted to PPP and one of the largest non-OECD economies
Source: EIU (Economist Intelligence Unit) *Forecast (October 10, 2011)
The twenty-fourth largest population in the world; The second most numerous Spanish-speaking population
112,469 46,927 45,92 40,52 38,206 34,033 29,96 28,631 22,2 17,09 11,27 10,637 10,63 9,4119 8,417 7,8665 7,6247 5,077 4,9181 4,388
Population Millions of People - 2010*
USA China Reino Unido
Brasil
Corea del S. México
Argentina
Tailandia
Malasia
COLOMBIA
20 40 60 80 100 120 140 160 180 200
,00% 1,00% 2,00% 3,00% 4,00% 5,00% 6,00%
Business Environment, World Bank Forecast of average GDP growth 2010 - 2050, HSBC
Colombia is an easy-access, high-growth market
Sources: HSBC: World in 2050. World Bank: Doing Business Report 2011
Russia India Turkey Poland Egypt
Beyond the BRICs: New Interesting Points
Colombia is a potential point of investment: “It is considered the friendliest country for business in Latin America according to the World Bank and, after many delays, it is about to sign a free trade agreement with the US” “Security is no longer an issue after the actions taken by the government; it seems they are winning the fight against crime, and its economic and demographic growth rates for the next few years are expected to be among the highest in the region"
Alex Duffy, Fidelity´s Latin America Fund The Independent, April 30, 2011
Colombia
1st Sem 2010 vs 1st Sem 2011
“Current investment flows confirm the strong performance of the economies in Latin America and the Caribbean, despite the environment of economic turbulence”
Alicia Bárcena – Executive Secretary of ECLAC
Source: Portafolio, October 26, 2011
“Brazil and Colombia are at the top of the list
funds…”
“Colombia will be better off than the rest
event of another global recession”
Rodrigo Chavez – Director, Latin America and Caribbean
“Colombia has become quite an attractive destination for investment…Increased security in Colombia has been reflected in the growth of the GDP per capita since 2002.”
68% 38% 25% 25% 18%
1 2 3 4 4
If you were to invest in a Latin American country in the next 3 years, where would you invest?
Brazil
Colombia
Chile Mexico Peru
“Colombia, one of the stars of Latin America…” IEE (Institute of Economic Studies) - Spain
“Colombia is the second most attractive country for investment in Latin America in the next 3 years.”
April 2011 October 2011 119 130 125 114
Colombia Global
Business Confidence Index (Points)
Colombian companies are beating the international trend. “The report has concluded that although the global outlook has clearly regressed almost everywhere in comparison with six months ago, Colombia has broken this trend.”
Ana Maria Castro, Regus' Director of Northern Latin America
Source: oecd.org, Regus, Press Release, October 5/ 2011
8 Dec, 2011 – “Colombia adheres to the OECD Declaration on International
foreign investors in the same way as domestic investors and to promoting responsible business conduct.”
In terms of Globalization, Colombia is in 3rd place in Latin America, beating world economies such as Japan, Brazil, Russia and Indonesia
Source: Ernst and Young – The Globalization Index 2010, Ranking among 60 countries.
Globalization Index, 2010
4,32 3,81 3,61 3,58 3,57 3,43 3,37 3,28 3,18 3,13 3,04 3,000 2,96 2,85
Country World Ranking 2012 World Ranking 2011 Chile 39 41 Peru 41 39 Colombia 42 47 Mexico 53 54 Panama 61 63 Argentina 113 114 Costa Rica 121 121 Brazil 126 120 Ecuador 130 131 Venezuela 177 175
Colombia remains the top reformer in the region in recent years. Colombia: third "friendliest" country to do business in Latin America and the biggest reformer in the region
Change in Doing Business Ranking, 2007-2012*
(Variation in the number of positions)
Source: Doing Business 2012 World Bank Report *Positive numbers indicate improvements in business environment
Three of the top risk rating agencies have rated Colombia "Investment Grade"
May 31, 2011
The three agencies agree on the country's positive economic and financial situation, highlighting: Its ability to deal with external shocks Its historic fulfillment of obligations An increase in its macroeconomic credibility A visible improvement in security conditions
“The new BRICs are Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa (CIVETS). They are countries with major populations, dynamic, diverse economies, political stability and each of them has a brilliant future. Any company with global ambitions will have to take immediate action in these markets.”
Michael Geoghegan, CEO HSBC April 26, 2010 in his speech to AmCham Hong Kong
Colombia: The C in CIVETS
The stock performance of the CIVETS group has been greater than that
the BRICS group since 2009.
S&P CIVETS 60 Indicator, second generation of emerging economies
Source: Standard & Poor’s
100-based index, June 07
EAGLES: “Emerging And Growth-Leading Economies”
Each of them is expected to contribute more to global growth over the next ten years than the average of the large developed countries. Colombia is on the waiting list to be included in the group Altogether, BBVA expects the EAGLEs to be responsible for half of the world's growth over the next ten years. On the other hand, the G7 will only contribute 14% of said growth.
Colombia Brazil Russia China India South Korea Indonesia Egypt Mexico Argentina Sud Africa Taiwan Turkey Peru Vietnam Malaysia Bangladesh Nigeria Pakistan Philippin es Poland Thailand
Capital
Population
Territorial Waters
Total Surface Area
Official Language
Juan Manuel Santos Calderón
President
Presidential Republic
Catholic Majority (Freedom of Religion)
Religion
Colombian Peso (COP$)
Time Zone
Source: DANE - EIU
Source: IMD World Competitiveness, 2011. Ranking consisting of 59 countries. 7/ The risk of political instability is very low. 8/ Bureaucracy is not an obstacle for business activity.
1,0700 4,9700 5,5900 6,8400 6,9600 8,1700 9,4800 Venezuel a Argentina Mexico Peru Colombia Brazil Chile Risk of Political Instability, 2011 7/
Scale 0-10. 0: high – 10: low
Bureaucracy, 2011 8/
Scale 0-10. 0: it is an obstacle – 10: it is not an obstacle
Chile 4.82
Colombia 3.05 Mexico 2.26 Peru 1.95 Brazil 1.62 Argentina 1.44 Venezuela 0.59 Country Rating
5,38 5,37 5,29 5,2 4,89 4,58 3,74 Colombia Chile Brazil Mexico Peru Argentina Venezuela 6,2 5,72 5,44 5,36 5,22 4 2,81 Chile Brasil Colombia Perú México Argentina Venezuela
Company Productivity, 2011 1/
Scale 0-10. 0: it is not supported – 10: it is supported
Efficiency of small and medium-sized companies, 2011 2/
Scale 0-10. 0: low – 10: high
Source: IMD World Competitiveness, 2011. Ranking of 59 countries. 1/ Companies' productivity is supported by global strategies (supplies, offshoring and outsourcing). 2/ Small- and medium-sized companies are efficient according to international standards.
Colombia focused on the development of small- and medium-sized companies to strengthen competitiveness. Colombia is a leader in guiding companies to higher productivity with global strategies.
Institutional Framework, 2011 1/
Scale 0-100. 0: it is not efficient – 100: it is efficient
Colombia stands out among Latin American markets with efficient structural reforms focused improving a competitive economy.
Source: IMD World Competitiveness, 2011. Ranking consisting of 59 countries. 1/ The country's institutional framework is efficient in the country's competitiveness. - 2/ The legal and regulatory framework promotes company competitiveness.
Legal and Regulatory Framework, 2011 2/
Scale 0-10. 0: it is not encouraging – 10: it is encouraging 57 47 46 45 40 33 31 Chile Mexico Colombia Peru Argentina Brazil Venezuela 01 02 03 04 04 05 07 Venezuela Argentina Mexico Brazil Colombia Peru Chile
Source: IMD World Competitiveness, 2011. Ranking consisting of 59 countries. 3/ Government decisions are applied effectively. 4/ Transparency in the government's policy is satisfactory.
6,78 4,04 3,96 3,83 2,9 1,88 1,58 Chile Colombia Peru Brazil Mexico Argentina Venezuela
Colombia is making progress in institutional development.
Government Decisions, 2011 3/
Scale 0-10. 0: ineffective – 10: effective
Transparency in Government policy, 2011 4/
Scale 0-10. 0: deficient– 10: satisfactory 7,65 3,71 3,43 3,21 3,01 1,02 0,49 Chile Colombia Brazil Peru Mexico Argentina Venezuela
1000 2000 3000 4000 5000 6000 7000 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Source: Ministry of Finance and Public Credit - EIU
Income Per Capita, Atlas Methodology According to international standards, Colombia is in the group of upper-middle income countries
US $
Upper Middle Income Lower Middle Income Low Income
2.471 2.391 2.347 2.233 2.721 3.354 3.670 4.610 5.362 5.091 6.153
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Colombia's GDP Per Capita 2000 – 2010 (US $)
Colombia's GDP per capita has triplied since 2003.
Source: EIU (Economist Intelligence Unit) (October 12, 2011)
+176%
5.826 5.984 6.151 6.343 6.817 7.204 7.817 8.474 8.842 8.940 9.300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Colombia's GDP Per Capita (PPP)*, 2000 – 2010 (US $)
The GDP Per Capita adjusted to PPP is nearly US $10,000
Source: EIU (Economist Intelligence Unit) (October 12, 2011)
+126%
Source: Bank of the Republic - DANE
8,750 7,650 6,990 6,490 5,500 4,850 4,480 5,690 7,670 2,00 3,170 2,370 2,920 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Enero - Sept. 2010 Enero - Sept 2011
Colombia's Inflation Rate (%) 2000 – Sept. 2011
Variation 2009–2010: -5% Variation 1st Sem 2010 - 1st Sem 2011: 91.4%
*Figures obtained through the foreign currency balance of the Bank of the Republic. **Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil
Note: the list of the top countries investing in Colombia does not include Anguilla or Panama, in third and fourth place. Source: Bank of the Republic - Balance of Payments
Main Investors in Colombia 2000 – 2010**
2.436 1.720 10.252 6.656 10.564 7.137 6.760 3.661 7.008
FDI, 2000 – 1st Semester 2011 US $Millions
United States
England
Spain
Mexico
Although natural resource extraction is the top area receiving FDI, financial services and manufacturing are getting stronger.
FDI in Colombia by Sector, 2009 - 1st Sem 2011
Share of all countries with positive cumulative investment, without reinvested profits or investments in the oil sector. Accumulated value 2009 – 1st Sem 2011: US $21.892 billion Source: Bank of the Republic
Financial 29,889% Manufacturas 20,8% Trade, Rest. y Hotels 18,759% Construction 11,327% Transports Y Comunic. 9,882% Electricity, Gas y Water 4,938%
Community Services 2,823%
Agricultura Caza, Silvic.a y Pesca 1,632%
FDI in Colombia by Non-Traditional Sectors, 2009 - 1st Sem 2011
Oil 37,075% Mining and Quarry 30,771% Financial 9,611% Manufacturas 6,7% Trade, Rest. and Hotels 6,032% Others 5,673% Construction 3,642% Agriculture Hunting, Forestry y Fishing ,525%
325 938 142 4.662 913 2.254 3.088 6.529 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Assembly of the first 500,000-volt electric transmission system in Peru. Investment: US $130 Million Purchased 60% of Peruvian energy company Cálidda. Investment: US$ 111 Million Acquisition of one hundred percent of the Central American Bank Investment: US$ 1.9 Billion Purchased ING companies in Chile, Mexico, Peru, Uruguay and Colombia Investment: US$ 3.763 Billion
Source: Banrep US $ Millions 1. USA 2. England 3. Panama 4. Brazil 5. Peru 6. Guatemala 7. Mexico 8. Chile 9. Ecuador 10. Venezuela
Ranking of countries receiving FDI from Colombia (2000-2010)
United States
China
Holland
Ecuador
In 10 years, exports tripled
13.158 37.626 32.852 39.820 22.404 31.690
Exports, 2000 - July 2011 US $Millions
Variation 2008 - 2009: -12.7% Variation 2009 - 2010: 21.2% Variation Jan Jul 2010 - Jan Jul 2011: 41.4% Source: DANE (National Department of Statistics)
Top destinations of exports, 2010
Sources: DAS, MCIT, Bank of the Republic. Proexport Calculations.
Foreign visitors to Colombia 2006 - January August 2011 (thousands) United States
Venezuela
Ecuador
Argentina
Main nationalities of visitors arriving to Colombia, 2010**
1.053 1.195 1.223 1.354 1.475 964 1.067
51 127 228 285 296 172 200 992 1.059 1.095 949 910 259 186
2.096 2.381 2.546 2.587 2.681 1.395 1.453
2006 2007 2008 2009 2010 Ene - Ago 2010 Ene - Ago 2011
DAS Cruise land border crossings Total
Emerging Markets Bond Index Plus (EMBI+), points over US Treasury Bonds. Source: JPMorgan – Central Bank of Peru
100 200 300 400 500 600 700 800 900 1000
Latinamerica Colombia
Sovereign Risk (EMBI+): Colombia vs. Latin America
Source: OECD – Colombia Economic Assessment, 2010
Colombia vs. OECD Countries (Doing Business Indicators - World Bank)
Best performance Average performance Worst performance
Percentile ranking Best practice
Closure of a business Establishment of a business Acquisition of construction permits Labor legislation Property register Obtaining credit Investor protection Paying taxes Cross-border trade Contract compliance
A low risk of political instability supports productivity and drives small and medium-sized companies:
Source: IMD World Competitiveness, 2011. Ranking consisting of 59 countries. 1/ Sustainable development is a priority for companies.
Sustainable Development, 2011 1/
Scale 0-10. 0: it is not a priority – 10: it is a priority
Colombia is moving forward as a leader in Latin America toward sustainable development.
6.18 5.84 5.58 5.05 5.03 4.78 4.22
Colombia Chile Brazil Peru Mexico Venezuela Argentina
A country with distinct regions and opportunities for investment
Central / Andean Region Amazon Region Pacific Region
Caribbe an Region
Orinoco Region
petrochemical cluster, construction supplies, Atlantic export platform
high value-added manufacturing, hub to cover domestic market, specialized agroindustry.
logistics, biotechnology, Pacific export platform
hydrocarbons
(Leticia)
Multiple development centers: 10 metropolitan cities/areas with populations greater than 500,000 inhabitants
Medellín (3.6) Bucaramanga (1.1) Bogotá (8.7) Cúcuta (0.8) Cali (2.9) Ibagué (0.6)
Coffee Triangle: Pereira, Manizales, Armenia and Cartago (1.8)
Population of cities including their metropolitan area. 2011
Source: DANE
Total population 2011 46 million Total population in metropolitan areas 23.3 million Santa Marta (0.6) Cartagena (1.3) Barranquilla (1.9)
In Force Signed In Negotiation Future IN FORCE
Uruguay and Brazil)
Guatemala y El Salvador)
SIGNED
IN NEGOTIATION
FUTURE
Positioning Colombia as an export platform: 11 free trade agreements (FTA) with 48 countries allowing preferential access to over 1,500 million consumers
IN FORCE
(Chapter)
SIGNED
IN NEGOTIATION
Note: The International investment agreements (IIA) include Agreement Investment Treaties (BIT) (agreement) and Free Trade Agreements (FTA) with investment section (chapter).
In Force Signed In Negotiation
In 2011, Colombia will be negotiating 18 international investment agreements (IIA)
IN FORCE
SIGNED
IN NEGOTIATION
Republic, Netherlands, Belgium, Portugal, Japan, France
In Force Signed In Negotiation
In 2011, Colombia will be negotiating 16 double taxation agreements (DTA)
AGRIBUSINESS INFRASTRUCTURE INNOVATION MINING HOUSING Strengthen cultivable areas and update them with technology to increase exports Stimulate the creation, improvement and expansion of infraestructure
Make use of large, unexplored gold and coal reserves Promote the development of “Housing for All” Leading driver of economic and social development
The goal for 2019 is 2%.
times over for 2012.
INNOVATION INFRASTRUCTURE
involves new inter-departmental highways, ports and airports to make Colombia more competitive. This plan requires over US $50 billion and significant support from the private sector.
MINING
coal reserves and 28 million ounces of gold, generating a competitive advantage compared to other countries in the region
HOUSING AGRO
due to internal displacement and economic difficulties.
Non-LIH. The government has planned to build one million homes, 70% of which will be LIH.
Requirements:
considerable capital investments in order to modernize the sector for growth and exportation. The peasants and indigenous communities that live in these areas will benefit from this initiative. Biofuels, Reforestation, Dairy Sector
Opportunities in:
2010 – Established a Private Capital Fund for Colombia in Infrastructure Investment: (Amount of the Fund): US $400 M 2011 - Development of 12,000 hectares of sugar cane and the construction of an ethanol plant with a capacity of 376,000 liters per day Investment: US $300 M Jobs: 1,000 2011 - Service center for financial and accounting operations - Spanish Market-. Investment: US $5 - 8 M Jobs: 1500 2011 - Established one of its two worldclass product research and development centers. Investment: US $20 M Jobs: 400 2011 - Global service center for BPO and IT operations Investment: US $100 M Jobs: 1000
India United States United States Israel Canada MERHAV
Productive Transformation Program: A Public - Private Partnership to strengthen and build “world class sectors”
MANUFACTURING SECTORS SERVICES SECTOR AGRIBUSINESS SECTOR
Business process,
IT Services and Software Cosmetics and Personal Care Products Health Services Exports Graphic communication industry Textiles, Fashion & Design Electric Power. Automotive Industry Chocolate Confectionery Cattle Palm and vegetable
Shrimp Farming
HUMAN RESOURCE DEVELOPMENT STANDARDS & REGULATIONS STRENGTHENING INDUSTRY AND PROMOTION INFRASTRUCTURE Sense of belonging, improved skills, and increased availability and retention in the
company alliances. Adjust standards and regulations to industry needs. Attract foreign investment, strengthen the sector and its trade unions, and its management and promotion capacity. Manage the availability of the right infrastructure that is required in each sector.
ACTION PLAN
In order to do so, the action plans contain initiatives related to four thematic subjects...
Free Trade Zones Single-Company (SCFTZ) Permanent (PFTZ)
The most competitive FTZ’s in Latin America: 15% income tax and allows sales to the local market
Free Trade Zone Approved
63
Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a USD 1 = COP 2.000 exchange rate. For 2011, the M.M.L.W is COP 535.600. The M.M.L.W, as well as the exchange rate are subject to variations.
Single - Company Free Trade Zone Permanent Free Trade Zone
Investment commitments Total Investment (USD Million) 6.993 Direct Jobs 47.115 Indirect Jobs 97.363 Investment executed so far Total Investment (USD Million) 3.158 Direct Jobs 6.674 Indirects Jobs 23.069
99 Free Trade Zones
Requirements for industrial firms of goods and services Total Assets (US$) Investment Ammount (US$ Million) Minimum direct jobs generation 0 – 133.900 133.900 – 1,34 Million 20 1,34 Million – 8,03 Million 1,34 30 More than 8,03 Million 3,08 50
Back Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000 exchange rate. For 2011, the M.M.L.W is COP 535.600. The M.M.L.W, as well as the exchange rate are subject to variations.
PERMANENT FREE TRADE ZONES (PFTZ) Several firms installed in a FTZ already established
(1) Each additional investment of US$ 6.16 million reduces 15 jobs of requirement. In any case, there must be generated at least 50 jobs. (2) For health services companies, 50% of jobs may be vinculated, not direct. (3) 50 indirect jobs can replace 20 direct jobs.
FTZ type Investment (US$ Million) AND direct jobs Goods (1) 40,17 150 Services (2) 2,67 – 12,31 500 12,31 – 24,63 350 24,63 or more 150 Services – Ports (3) 40,17 20
Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2011 is COP 535.600. M.M.L.W. and Exchange Rate are subject to changes.
Back
SCFTZ Agribusiness
SINGLE-COMPANY FREE TRADE ZONES (SCFTZ): A single firm can get all FTZ advantages by installing itself in any place in Colombia
FTZ type Investment (US$ Million) Or related jobs to the production Agribusiness 20,08 500 Subsectors which are eligible for FTZ status under agribusiness requirements Biofuels Meat and Fish Oil and grease products from vegetables and animals Dairy products Legume and fruits, prepared or preserved, tea, soup, vinegar, sauces and yeast* Coffee
* According to the national statistics this products classification is called “products not classified previously”. Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2011 is COP 535.600. M.M.L.W. and Exchange Rate are subject to changes.
Back
SINGLE-COMPANY FREE TRADE ZONES (SCFTZ): A single firm can get all FTZ advantages by installing itself in any place in Colombia
before 2018.
Tourism
Eco-tourism
between 2003 and 2014.
Late yield crops
sawmilling and timber plantations.
Forestry
cultural characteristics are exempt until 2013.
Editorial
high scientific and technological research content, starting from 2003.
New medicinal products and software
based on wind resources, biomass or agricultural waste.
Renewable energy
and boats with net weight below 25 tons.
River transport
technological developments.
Research and Technological Development
Other incentives by sector: Income tax exemption for up to 20 years
Discount in the income tax and supplementary contributions, and
from payroll (Do not include positions
generated by mergers or replacements)
New employees under twenty eight (28) years old. Length of benefit by employee: 2 years. New employees certified in displacement situation, reintegration or
New women employees above 40 years old with more than 1 year
New employees with incomes lower than 1.5 SMMLV. Length of benefit by employee : 2 years.
Formalization and Employment Generation