Presentation on theme: "Export Services and Business Opportunities in Colombia Manny Mencia."— Presentation transcript:
Export Services and Business Opportunities in Colombia Manny Mencia
2 Colombia Market Overview Colombia is the 4 th largest economy of Latin America (U.S. $141 Billion) Population of 44 Million with a large and growing middle class One of the most stable economies in the Americas Conservative economic policies lessened impact of global downturn Economy expected to expand by 4% in 2010 Thriving democracy with strong governmental institutions Free trade agreement with the U.S. since 2006
3 Colombia Market Overview (cont’d) Colombia is among the U.S. most loyal allies in the world Strong preference for doing business with American companies Colombian legal and regulatory systems are generally transparent and consistent with international norms Government is funding and implementing large infrastructure projects Much improved security environment throughout the country Bogota rated in the New York Times, top 50 cities to visit Increased access to credit, use of credit cards, and flexible payment plans
4 Florida-Colombia Trade Relationship Florida’s 2 nd Global Trade Partner – Over U.S. $6 Billion in Bilateral Trade Florida’s 3 rd Largest Export Market $3.8 Billion - Florida Exports in 2009 $2.1 Billion Total Florida Origin Exports – Up more than 14% through March 2010 39% of all U.S. exports with Colombia move through Florida Also a significant investor in our state
5 Top Florida Exports to Colombia Computers & Peripherals Telecommunications Equipment Aircrafts, Aircraft Engines & Parts Office Equipments & Parts Medical Equipment & Supplies Construction Equipment & Machinery Parts Motor Vehicle Parts Printing Equipment
6 Best Export Opportunities Telecommunications Equipment Services Computers and Components Medical Equipment Safety and SecurityAutomotives Parts and Accessories Construction and Mining Equipment Travel and Tourism Electrical Power SystemsBuilding Materials Air Cargo Services Pollution Control Equipment Food/Beverage Processing and Packaging Equipment Plastic Materials and ResinsOil/Gas Machinery and Services
7 Special Projects/Export Opportunities El Dorado-Bogota Airport Expansion $880 Million capital expenditures out of US $1.2 Billion total project –Demolition and reconstruction on new national terminal –Construction of new international terminal –Construction of new cargo terminal –Construction of new office building –Construction of new maintenance area Expanded airport will have twice its current capacity Largest Latin American airport in terms of cargo tonnage
8 Special Projects/Export Opportunities Passenger & Load Equipment (elevators/moving/sidewalks/ escalators) Fire Protection IT Systems (Airport Operation Database Systems) Electrical EquipmentSecurity & Access Control Systems Telephone EquipmentPublic Address System Structure Cabling SystemAirport Maintenance Equipment Data Network EquipmentPassenger Loading Equipment Baggage Handling System El Dorado-Bogota Airport Expansion-cont’d
9 Special Projects/Export Opportunities- (cont’d) Infrastructure: Expansion of the Transmilenio mass-transit system, rail and fluvial systems. Oil & Gas: Ecopetrol modernizing Cartagena refinery and building biodiesel facility. Construction: American hotel chains; Hilton, Hyatt, Marriott, Hard Rock, Four Seasons and Trump have major projects. Medical Equipment: Supply of diagnostic equipment does not meet existing demand - GoC plans to double acquisition within 10 years. Education: Colombians prefer to study in the US. Current policies. Plastics & Resins: No local manufacturing of plastics M&E - Colombia imports ALL Country Commercial Guide and Market Assessments
10 U.S. - Colombia Free Trade Agreement: Economic Benefits Signed by U.S. and Colombia in November 2006. Ratified by Colombia in 2007. Pending ratification in U.S. Congress. Eliminate tariffs on over 80% of U.S. consumer and industrial exports to Colombia immediately. All tariffs will phase out in 10 years. Colombia’s market for services and government procurement would be open to U.S. firms. Rules protecting the environment, intellectual property and worker’s rights would be strengthened.
11 Trade Missions Trade missions are business development trips overseas organized by official agencies designed to promote international business opportunities such as exports sales, foreign direct investment and developing strategic relationships. Trade missions may include networking events, trade shows, business matchmaking, seminars and site visits
12 Export Sales Mission to Colombia August 9 – 14, 2010 Bogota & Cartagena Gold Key $1,750 for both cities $450 for second rep $1,050 Bogota only $750 Cartagena only Delegate $575 for both cities $375 for one city
13 Gold Key: The Registration Process and What is Included Included One & half days of personalized pre-screened one-on-one business appointments in Bogota One full day of appointments in Cartagena Country briefings by the U.S. Embassy Ambassador’s reception and networking events Ground transportation to all mission events Translation services Process Gold Key registration form Market assessment/feedback from post Confirm and process payment Send collateral, work with post on appointments
14 Delegate: The Registration Process and What is Included Included Country briefings by the U.S. Embassy Ambassador’s reception Networking events Transportation to all mission events Possible additional events Process Delegate Registration Form Advise setting up your own appointments
15 Export Sales Mission to Colombia Partners: Additional Costs EFI has arranged special group rates for participants but are responsible for their own hotel and airfare charges. AVIANCA Airlines (approx $650). Marriott Bogota (approx $180/night). Hilton Cartagena (approx $216/night). Express Travel will coordinate all air and hotel arrangements with you and assist you with options and preferences.
16 Preparing for a Trade Mission Sign-up early on (This allows coordinators to fully vet your products and opportunities Take time to complete your registration forms Make sure to provide a full description of your products, specific mission objectives and end users Take time to discuss your participation with the mission and appointment coordinators Identify your special needs: –Interpreter for appointments, product translations and audio visuals Suggest specific companies you want to meet with
17 During The Mission Be sure to meet your fellow participants and acquaint them with your company Honor ALL your appointments. Take plenty of brochures. Do not schedule your own appointments unless you notify the mission coordinators Leverage the social events – take lots of business cards Be prepared to negotiate and adapt Get to know the local USCS staff Have fun and get the flavor of the local culture
18 After The Mission Follow up promptly on all leads – Flag top leads Write ‘Thank You’ notes to all If possible, do not delegate follow-up - personal touch is vital Be prepared to return and invite prospects to visit your facility Put all prospects in your mailing lists & stay in touch Provide your ‘End of Event Report’ promptly
19 Market Entry Strategies: Consider securing an agent or distribution in Colombia. Work on developing a personal relationship with your clients/distributors. Focus on formality and trust when negotiating agreements and contracts. Offer after sales service arrangements – warranties and guarantees critical Prepare to translate sales collaterals – Spanish a plus but not essential
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