Several products contributed to this uptick. In the industrial sector, electric transformers saw a 61.5% increase in exports. Insecticides experienced a 7.1% rise, beauty preparations grew by 17.6%, and chloride polymer exports went up by 9.1%. Agricultural products also played a significant role. Coffee exports increased by 18.4%, flowers by 9.9%, and bananas by 30.4%. Additionally, exports of pineapples, avocados, guavas, and mangos collectively grew by 46.3%.

Regionally, eight of the top ten non-mining export areas reported positive results. Bogotá’s exports increased by 10.3%, Antioquia by 6.9%, Cundinamarca by 9.8%, Bolívar by 7.8%, Caldas by 6.4%, Huila by 33.4%, Risaralda by 50.6%, and Magdalena by 12.9%.

The Ministry attributes these gains to government policies aimed at diversifying and enhancing the value of Colombia’s export offerings. Minister of Commerce, Industry, and Tourism, Luis Carlos Reyes Hernández, stated that the focus is on positioning Colombian products with added value in various markets, emphasizing the promotion of exports.

These figures underscore Colombia’s ongoing efforts to strengthen its non-mining export sectors and reduce reliance on traditional commodities.

Headline Image: Coffee from Colombia. Photo credit: Ministry of Commerce, Industry, and Tourism (MinCIT)

The interpretative note serves to elucidate the proper understanding of Chapter 10, which addresses investment-related matters, particularly investor-state disputes. Notably, the note does not alter the original text of the FTA, thereby maintaining existing protections.

Minister Reyes emphasized the significance of this clarification for investor expectations, state commitments, and the resolution of disputes by national judges, authorities, and international arbitrators. He stated, “This clarification is important for the expectations of investors, the commitments of the States, and for the resolution of disputes by national judges and authorities and international arbitrators.”

Minister Reyes clarified that the declaration does not undermine incentives for foreign investment

The note aims to clarify the protection commitments each state assumes, addressing ambiguities within the agreement that could lead to frivolous claims or abuses by investors seeking undue advantage. It reaffirms each country’s right to enact new regulations in the legitimate pursuit of public policy objectives, such as environmental protection.

Additionally, the document stipulates that investments not complying with the host country’s internal regulations will not receive protection, thereby excluding illicit investments. It underscores the sovereignty of national judges and authorities by explicitly stating that investment tribunals are not appellate bodies for domestic decisions and cannot review the substance of rulings issued by national judges and authorities.

The note also reiterates that investors bear the burden of proving their claims, which must be based on objective and concrete evidence rather than mere expectations or potential future or hypothetical damages.

Furthermore, it clarifies non-discrimination rules for foreign investments, specifying that differential treatment does not inherently constitute discrimination and that investors will not be subjected to discriminatory treatment based on nationality. It also affirms that investors cannot selectively choose protections from the portfolio of investment treaties each party has signed.

Minister Reyes clarified that the declaration does not undermine incentives for foreign investment but reinforces them for investments that benefit both investors and Colombian society.

This interpretative note aligns with directives from recent US administrations regarding investor-state dispute resolution, which have historically received bipartisan support. It also corresponds with Colombia’s Constitutional Court rulings stipulating that investment agreements must conform to the constitutional order.

Moreover, the note aligns with discussions in multilateral forums, such as the Organization for Economic Co-operation and Development (OECD) and the United Nations, in which Colombia has actively participated.

The United States remains Colombia’s principal source of foreign investment. As of the third quarter of 2024, according to the balance of payments data from the Banco de la República, foreign capital from the US in Colombia amounted to $4.163 billion, representing approximately 42% of the total. The US is also Colombia’s main trading partner, accounting for 29% of the country’s total exports and 31.6% of non-mining energy goods exports. It contributes to about 26% of total goods imports.

Headline Image: Colombia’s Minister of Commerce, Industry, and Tourism, Luis Carlos Reyes Hernández. Photo credit: Mincit.gov.co

Reyes, accompanied by Acting Deputy Minister of Business Development Lorenzo Castillo Barvo, held meetings with Chinese investors and visited key industrial sites including the headquarters of technology giant Huawei, the automotive company SAIC, and the electric vehicle manufacturer BYD, which has a notable presence in Colombia’s electric bus sector. The trip also included a tour of Yangshan Port, the world’s largest port, renowned for its state-of-the-art automation and zero-emissions operations, which Colombia hopes to emulate to improve its own logistics infrastructure.

These meetings coincide with Colombia’s ongoing efforts to strengthen its participation in China’s Belt and Road Initiative (BRI), which has sparked both interest and concern across the region. China’s BRI is a multi-billion-dollar infrastructure and investment strategy aimed at enhancing global trade links. For Colombia, formal participation could mean increased investment in critical sectors such as energy and transportation. However, the initiative has also raised concerns about increasing Chinese influence in Latin America and the long-term geopolitical implications of deepening ties with the Asian power.

Colombia’s government is focusing on collaboration with Chinese entities in infrastructure, renewable energy, and technology, areas that align with global trends towards sustainable development. At Huawei’s Shanghai facility, Reyes explored advances in artificial intelligence, fiber optics, 3D modelling, and 5G technologies, while discussions with companies like Alibaba, ZTE, and Jinkosolar underscored Colombia’s push to boost its digital and green economy.

During his visit, Reyes also participated in the China International Import Expo (CIIE), a major trade event that draws global participants. Colombian companies including LOK Foods, Madremonte, and Minerva showcased their products to Chinese buyers, hoping to capitalize on the growing demand for Colombian goods in China. Reyes emphasized the importance of international trade for Colombia’s economy but stressed that the benefits should reach all sectors of society, particularly rural communities involved in agriculture.

While the Colombian government appears eager to capitalize on China’s economic potential, critics of the BRI are concerned about its broader geopolitical impact. The initiative, which has been expanding across Latin America and other developing regions, often involves Chinese loans for large-scale infrastructure projects. Critics argue that these loans can increase the indebtedness of participating countries, making them more susceptible to China’s economic and political influence.

In a parallel development, discussions about Colombia’s official participation in the BRI were revisited during a trade event between Colombia and China’s Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in October. Luis Diego Monsalve, former Colombian ambassador to China, indicated that efforts were underway to formalize Colombia’s involvement in the BRI, highlighting the economic benefits but also noting potential risks of growing dependence on Chinese investments.

China’s BRI has sparked concerns about the environmental and financial risks posed by massive infrastructure projects in developing nations. However, Colombia’s government remains focused on harnessing the economic potential of Chinese investment to support its transition to a sustainable economy. This balancing act will be critical as Colombia continues to navigate its relations with China, while ensuring that the long-term benefits of these investments are not overshadowed by the geopolitical risks associated with the Belt and Road Initiative.

As Colombia and China strengthen their commercial relationship, the implications for regional geopolitics and the future of the Belt and Road Initiative will remain a central issue. The growing influence of China in Latin America and the Caribbean is set to redefine trade dynamics and the balance of power in the region in the years to come.

For more details on the BRI and its implications for Latin America, see Guangdong Provincial Development and Reform Commission and Huawei’s Technology Solutions.

Above photo: Luis Carlos Reyes Hernández, Minister of Commerce, Industry, and Tourism (courtesy MinCIT)

Demand for Colombian non-mining products has fluctuated across international markets, but exports to key partners like the United States, Mexico, and Venezuela have shown notable increases. Exports to the United States rose by 8.6%, while Mexico and Venezuela saw increases of 22.5% and 47.4%, respectively. Other markets also saw growth, with exports to Belgium increasing by 33.7% and the Netherlands by 3.9%.

Industrial and Agricultural Sectors Drive Export Growth

Industrial products, which account for about 62% of Colombia’s non-mining exports, grew by 4.1% year-over-year. Key industrial exports included electrical machinery and equipment, which rose by 30.3%, and cosmetics and beauty preparations, up by 26.4%. Exports of plastics and related products grew by 10.6%, while sales of insecticides and fungicides increased by 4.1%.

Agricultural products, comprising 37.8% of Colombia’s non-mining export basket, grew by 16% through September. Significant increases were observed in exports of Tahiti lime (69%), bananas (48.6%), Hass avocado (42.4%), and passion fruit (20.2%). Coffee exports rose by 11.6%, while cut flower exports increased by 12%. Tilapia fillets saw a modest increase of 7.6%.

Regional Contributions to Export Growth

Several Colombian regions played a prominent role in the export growth of non-mining goods. Risaralda saw the largest percentage increase, with exports reaching $639.9 million, up 58.9% year-over-year. Huila exported $677.1 million worth of non-mining goods, representing a 35.3% increase, while Santander reported $253.6 million in exports, marking a 12% rise.

Bolívar contributed $1.38 billion in exports, showing a 10.1% growth, and Antioquia led with $3.02 billion in non-mining exports, a 9.1% increase. Other regions also contributed, reflecting a broad geographic distribution of Colombia’s non-mining export growth.

Government’s Strategy and Export Support

According to Minister of Commerce, Industry, and Tourism Luis Carlos Reyes Hernández, the government is focused on sustaining export growth by supporting regional businesses. The Ministry is working with local entrepreneurs to help them access new markets, providing various resources and support tools to boost Colombia’s international presence in non-traditional sectors.

The rise in Colombia’s non-mining exports reflects ongoing efforts to diversify the country’s export base, moving away from traditional reliance on mining and energy products. This trend underscores Colombia’s strategic push to leverage its agricultural and industrial sectors to enhance trade resilience and support economic growth.

Excluding Venezuelan nationals, foreign visitor numbers grew by 10.9%, reaching 3,157,951 compared to 2,847,393 over the same timeframe in 2023. Returning Colombian residents also increased, with 1,264,145 arrivals, a rise from 1,149,097 in 2023.

The United States continues to be the primary source of foreign visitors, accounting for 27.1% of international arrivals, followed by Mexico, Ecuador, and Venezuela.

Regional Destinations

Bogotá remains the leading destination for international visitors, attracting 37.4% of total non-resident arrivals from January to September 2024. Other popular regions include Antioquia, Bolívar, and Valle del Cauca.

In September alone, Colombia saw 338,098 non-resident foreign visitors, representing an 8.3% increase from the 312,056 arrivals in September 2023.

Government Initiatives and Minister’s Statement

Minister of Commerce, Industry, and Tourism Luis Carlos Reyes Hernández, commented on the country’s strategy to strengthen non-traditional destinations through community-based tourism projects. “The government’s efforts are drawing international visitors interested not only in our biodiversity and cuisine but in cultural and peace-centered experiences throughout the regions,” he said, emphasizing the country’s aim to lead in inclusive and sustainable tourism development.

Air Travel Connectivity and Passenger Movement

Air travel data from Aerocivil underscores the growth in passenger movement, with 36.5 million air passengers between January and August 2024, marking a 16.6% increase compared to the same period in 2023. Of this total, 21,396,807 passengers traveled on domestic flights, while 15,127,233 were on international flights.

Domestic air travel saw a 13.7% rise, while international travel increased by 16.3% over the period. Pereira reported the largest growth in domestic passenger arrivals at 34.2%, followed by Bogotá at 20.9%. Among international destinations, San Andrés saw a 61% rise in arrivals, and Cúcuta recorded a 38.9% increase compared to 2023.

Tourism Promotion Campaign

The “Colombia, El País de la Belleza” campaign has played a role in enhancing the country’s visibility on the global stage, insists the minister. “Our campaign has positioned Colombia as a well-known destination with much to offer, contributing to the rise in visitor numbers,” Minister Reyes added. The government aims to continue strengthening all aspects of the tourism value chain to meet the needs of non-resident visitors and support a diversified tourism offering.

Bogota photo courtesy of Cushman & Wakefield.

The sustained growth in non-mining exports during 2024 aligns with global trade trends noted by the World Trade Organization (WTO), which has observed a recovery in trade activity during the third quarter of the year, following weakened demand in 2023.

Minister of Commerce, Industry, and Tourism, Luis Carlos Reyes Hernández, noted the importance of these figures, stating that the government continues working closely with businesses in various regions to support their internationalization efforts.

Breakdown of Key Exports and Sectors

The growth in Colombia’s non-mining exports has been driven by increased demand for both manufactured goods and agricultural products. Among the standout performers were:

• Liquid dielectric transformers: Up 126.6% compared to the same period in 2023
• Passenger vehicles (buses 10+ persons): Up 109.4%
• Cocoa and cocoa products: Up 103.7%
• Tahiti limes: Up 59.5%
• Bananas: Up 47.5%
• Polyvinyl chloride (PVC): Up 33.7%
• Hass avocados: Up 33.2%
• Beauty products: Up 26.6%
• Perfumes and colognes: Up 23.8%
• Kitchen and bath textiles: Up 19.9%
• Hair care products and shampoos: Up 12.5%
• Tilapia fillets: Up 11.6%
• Flowers and coffee: Up 10.8% and 10.4%, respectively

Regional Contributions to Export Growth

Eight of the top ten exporting departments, accounting for 73.9% of non-mining exports, showed significant growth in 2024. The largest contributors included:

• Bogotá: Up 14.2%
• Antioquia: Up 6.1%
• Cundinamarca: Up 9.6%
• Bolívar: Up 12.1%
• Caldas: Up 2.1%
• Huila: Up 34%
• Risaralda: Up 57.4%
• Magdalena: Up 9.2%

Key Export Destinations

Several international markets also contributed to the increase in non-mining exports. Sales to the United States grew by 6.9%, while exports to Mexico surged by 20.7% and Venezuela by 46.3%. Other notable increases were seen in Belgium (34.4%) and Germany (31%).

These results reinforce the positive trajectory of Colombia’s non-mining export sector, supported by growing demand across various industries and key markets worldwide.

Above photo: A banana truck in Caldas, Colombia (Loren Moss)

An analysis by the Economic Studies Office of the Ministry of Industry, Commerce, and Tourism, based on data from Migración Colombia, reported 3,115,341 non-resident visitors in the first half of 2024. This includes 2,144,765 foreign non-residents, reflecting an 11.1% increase from the same period in 2023.

In June 2024 alone, 359,851 foreign non-residents arrived in the country, a 9.8% increase from June 2023.

The primary countries of origin for foreign non-residents from January to June 2024 were the United States (28.2%), Mexico (8.0%), and Ecuador (8.0%). Costa Rica showed significant growth, with a 51.3% increase in visitors compared to the same period in 2023.

Regarding regional preferences, Bogotá received 36.9% of the foreign non-residents, followed by Antioquia (27.6%) and Bolívar (20.1%).

The largest increases in tourist numbers in the first half of 2024 were in Antioquia (25.8%), Bolívar (17.6%), and Risaralda (7.9%).

Minister of Commerce, Industry, and Tourism, Luis Carlos Reyes Hernández, commented on the data, noting the efforts to position Colombia as a major tourist destination in Latin America and globally. He emphasized the goal of making sustainable tourism a key economic driver for the country.

In terms of connectivity, the latest report from Aerocivil, the Civil Aviation Authority indicated that 26,859,000 passengers traveled through the country’s airports between January and June 2024, a 16.8% increase from the first half of 2023. This represents an additional 3,867,000 passengers during this period.

Approximately 16 million passengers traveled on domestic flights, an increase of 12% (1,702,000 more passengers) compared to the first half of 2023.

Foreign direct investment in commerce, restaurants, and hotels reached USD $526 million in the first three months of 2024, a 21.3% increase from the same period in 2023. Additionally, travel-related exports brought in USD $2.536 billion in the first quarter of 2024, a 19% increase compared to the same period last year.

These figures reinforce Colombia’s position as a preferred destination in Latin America, showcasing the country’s cultural, community, and culinary experiences, and promoting non-traditional tourist areas through sustainability, productivity, and respect for nature.

Above photo: Barú beach outside of Cartagena, Colombia by Loren Moss