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Country Analysis Brief: Colombia
Country Analysis Brief: Colombia
Source: Energy Information Administration
The enactment of a series of regulatory reforms to make the oil and natural gas sector more attractive to foreign investors served as an incentive for rising production. In addition, the government has implemented a partial privatization of state oil company Ecopetrol in an attempt to revive its upstream oil industry. The security situation in the country also has improved over the last decade, with fewer attacks against oil and natural gas infrastructure in recent years. Expanded oil production will require further investment in transport infrastructure and refining capacity.
In 2009, Colombia consumed 1.3 quadrillion Btus of total energy. Oil constituted the largest part of this amount, followed by hydroelectricity, natural gas, and coal. The country relies upon hydropower for the bulk of its electricity needs, so it is able to export most of the coal that it produces. Natural gas consumption in Colombia has also risen over the last decade.
CRS — The U.S.-Colombia Free Trade Agreement: Background and Issues
The U.S.-Colombia Free Trade Agreement: Background and Issues (PDF)
Source: Congressional Research Service (via Federation of American Scientists)
The U.S.-Colombia Free Trade Agreement, or U.S. Colombia Trade Promotion Agreement, as it is officially called, is a comprehensive free trade agreement (FTA) between the United States and Colombia, which will eventually eliminate tariffs and other barriers in bilateral trade in goods and services. The agreement will enter into force on May 15, 2012. On October 3, 2011, President Barack Obama submitted draft legislation (H.R. 3078/S. 1641) to both houses of Congress to implement the FTA. On October 12, 2011, the House passed H.R. 3078 (262-167) and sent it to the Senate. The Senate passed the implementing legislation (66-33) on the same day. The agreement was signed by both countries almost five years earlier, on November 22, 2006. The Colombian Congress approved it in June 2007 and again in October 2007, after it was modified to include new provisions agreed to in the May 10, 2007 bipartisan understanding between congressional leadership and President George W. Bush. Upon entry into force, the agreement will immediately eliminate duties on 80% of U.S. exports of consumer and industrial products to Colombia. Most remaining tariffs will be eliminated within 10 years of implementation.
The congressional debate surrounding the CFTA mostly centered on violence, labor, and human rights issues in Colombia. Numerous Members of Congress opposed passage of the agreement because of concerns about alleged violence against union members in Colombia, inadequate efforts to bring perpetrators to justice, and weak protection of worker rights. However, other Members of Congress supported the CFTA and took issue with these charges, stating that Colombia had made great progress over the last ten years to curb violence and enhance security. They also argued that U.S. exporters were losing market share of the Colombian market and that the agreement would open the Colombian market for U.S. goods and services. For Colombia, an FTA with the United States is part of its overall economic development strategy.
To address the concerns related to labor rights and violence in Colombia, the United States and Colombia agreed upon an “Action Plan Related to Labor Rights” that includes specific and concrete steps, with specific timelines, most of which took place in 2011. It contains numerous commitments by the Colombian government to protect union members, end impunity, and improve worker rights. The Colombian government submitted documents to the United States in time to meet various target dates listed in the Action Plan. The USTR reviewed the documents and determined that Colombia had met its major commitments.
The U.S. business community generally supports the FTA with Colombia because it sees it as an opportunity to increase U.S. exports to Colombia. U.S. exporters urged U.S. policymakers to move forward with the agreement, arguing that the United States was losing market share of the Colombian market, especially in agriculture, as Colombia entered into FTAs with other countries. Colombia’s FTA with Canada, which was implemented on August 15, 2011, was of particular concern for U.S. agricultural producers.
The United States is Colombia’s leading trade partner. Colombia accounts for a very small percentage of U.S. trade (1.0% in 2011), ranking 22 nd among U.S. export markets and 23 rd as a supplier of U.S. imports. Economic studies on the impact of a U.S.-Colombia free trade agreement (FTA) have found that, upon full implementation of an agreement, the impact on the United States would be positive but very small due to the small size of the Colombian economy when compared to that of the United States (about 2.2%).
Country Specific Information: Colombia
Country Specific Information: Colombia
Source: U.S. Department of State
August 23, 2011
COUNTRY DESCRIPTION: Colombia is a medium-income nation of some 46 million inhabitants. Its geography is very diverse, ranging from tropical coastal areas and rainforests to rugged mountainous terrain. Tourist facilities in Colombia vary in quality and safety, according to price and location. Security is a significant concern for travelers, as described in the Department of State’s Travel Warning for Colombia. Read the Department of State Background Notes on Colombia for additional information.
State Department Travel Warning: Columbia
State Department Travel Warning: Columbia
Source: U.S. Department of State
The Department of State warns U.S. citizens of the dangers of travel to Colombia. Security in Colombia has improved significantly in recent years, including in tourist and business travel destinations like Cartagena and Bogota, but violence by narco-terrorist groups continues to affect some rural areas and large cities. This updates and replaces the Travel Warning for Colombia issued November 10, 2010 to update information on recent security incidents and terrorist activity.
Terrorist activity remains a threat throughout the country. On August 12, 2010, a car bomb exploded outside the Caracol radio station in Bogota, injuring seven people. On October 21, 2010, Colombian authorities foiled another car bomb attack directed at the National Administrative Center in Bogota. On June 16, 2011, a satchel bomb exploded at a local monument in uptown Bogota, resulting in some damage to adjoining buildings, but no fatalities or injuries. Small towns and rural areas of Colombia can still be extremely dangerous due to the presence of narco-terrorists. While the Embassy possesses no information concerning specific and credible threats against U.S. citizens in Colombia, we strongly encourage you to exercise caution and remain vigilant.
The incidence of kidnapping in Colombia has diminished significantly from its peak at the beginning of this decade. Nevertheless, terrorist groups such as the Revolutionary Armed Forces of Colombia (FARC), the National Liberation Army (ELN), and other criminal organizations continue to kidnap and hold civilians for ransom or as political bargaining chips. No one is immune from kidnapping on the basis of occupation, nationality, or other factors. Kidnapping remains a serious threat, with two kidnapping cases of U.S. citizens reported since August 2010. One kidnapped citizen was rescued within 4 days and the other case resulted in the murder of the victim. Kidnapping in rural areas is of particular concern. On July 2, 2008, the Government of Colombia rescued 15 hostages, including three U.S. citizens, who had been held for more than five years. Although the U.S. government places the highest priority on the safe recovery of kidnapped U.S. citizens, it is U.S. policy not to make concessions to or strike deals with kidnappers. Consequently, the U.S. government’s ability to assist kidnapping victims is limited.
Country Analysis Brief: Columbia
Country Analysis Brief: Columbia
Source: Energy Information Administration
Colombia has seen a dramatic increase in oil production in recent years following a period of steady decline. The Colombian government has enacted a series of regulatory reforms to make the sector more attractive to foreign investors. In addition, it has implemented a partial privatization of state oil company Ecopetrol in an attempt to revive its upstream oil industry. The security situation in the country also has improved over the last decade, with fewer attacks against oil and natural gas infrastructure in recent years. Expanded oil production will require further investment in transport infrastructure and refining capacity.
In 2008, Colombia consumed 1.4 quadrillion Btus of total energy. Oil constituted the largest part of this amount, followed by hydroelectricity. Colombia is also a large coal producer. The country relies upon hydropower for the bulk of its electricity needs, so it is able to export most of the coal that it produces. Natural gas consumption in Colombia has also risen over the last decade.
Socio-Economic Impact of Arms Transfers to Developing Countries
Socio-Economic Impact of Arms Transfers to Developing Countries
Source: Social Science Research Network (Peace & Conflict Review)
In developing nations, importance placed upon defence spending comes at a social cost. This paper explores the link between developing nations’ arms imports and their impact upon socio-economic factors. The first part of this paper elaborates upon the problem of arms transfers to developing countries. The second part provides case studies of Colombia, Egypt, Eritrea, India, Iran, Namibia, Pakistan, Venezuela, and Vietnam. The comparative analysis demonstrates that arms imports have a negative impact upon developing nations. GDP per capita spent upon arms imports usually has the strongest impact upon socio-economic factors, though conflict status and regional stability are also influential.
Colombia: A Key Partnership
Colombia: A Key Partnership
Source: U.S. Department of State
U.S. goods exports to Colombia in 2010 reached a record high of $12 billion, representing a 27% increase from 2009. A trade agreement with Colombia will help increase U.S. GDP by an estimated $2.5 billion goods exports by an estimated $1.1 billion.
- Colombia is the third largest market for U.S. exports in Latin America and the 20th largest market for U.S. goods.
- The Colombian government plans to invest $42 billion over the next eight years in urgently needed infrastructure projects, such as roads and airports, presenting opportunities for U.S. exporters.
- The U.S. sold more products to Colombia than to Russia, Spain, Turkey, Saudi Arabia, Egypt, Chile, Peru, Indonesia, South Africa, Thailand, and the Philippines in 2010. Every U.S. state exports to Colombia.
