Colombia marks trade deal with Korea

Colombian Ambassador to Korea Tito Saul Pinilla, second from left, attends the "Implementation of the FTA between Colombia and Korea" seminar at the Trade Tower in Seoul on July 14. / Yonhap

By Rachel Lee

Colombian Ambassador Tito Saul Pinilla held a seminar to promote the Latin American country in Korea, the first Asian country to sign a free trade agreement (FTA) with it that entered into force on July15.

About 120 representatives from key Korean companies were present at the "Implementation of the FTA between Colombia and Korea" designed to explain the different business sectors of Colombia with an introduction of products that have high potential when exported here. The highlights were agriculture and agro-industry.

"The FTA between our countries will provide more opportunities for us to connect, grow and develop," the ambassador said.

He believed that the trade deal was of a great importance for many reasons.

For his country, the agreement with Korea was the "strongest step to diversify trade in Asia," opening up new opportunities to develop its agricultural sector.

Korea is a major importer of these products, he added. The FTA will also give Colombian companies access to raw materials and capital goods produced by the Republic of Korea, which will enable them to increase their competitiveness.

"There are good opportunities for Korea as well in coffee, flowers, beef, sugar, bananas, fruit, vegetables … as well as jams and jellies, juices, cookies and candies," the envoy said.

According to the Ministry of Trade, Industry and Energy, tariffs will be eliminated immediately for 4,000 export items. About 2,700 items will get lower tariffs.

For Korea, cars and cosmetics are among those anticipated to benefit most. The current 35 percent tariff on cars will be scrapped within 10 years and cosmetics within seven to 10 years.

Colombia is the third Latin American country to sign an FTA with Korea after Chile and Peru. Korea and Colombia officially signed the deal in February 2013. Korea's exports to Colombia totaled $1.1 billion last year, while imports marked $800 million.

Colombia is a rapidly growing market in Latin America. Its population of 47.6 million is the third largest in the region while its $377.9 billion GDP is the fourth largest. The country attained 3.1 percent economic growth in 2015, following 4.9 percent in 2013 and 4.4 percent in 2014. The country also boasts abundant natural resources. It is the fourth-largest oil producer in Latin America, second-largest in nickel and the sixth in natural gas.

"We expect to become a member of the OECD by 2017. Also we have a regional countries group known as Pacific Alliance (Mexico, Peru, Chile and Colombia) that is working very efficiently. Our middle class is growing very fast and is also one of the most educated in the region," he said.

"The new environment that is being created in Colombia, with peace and the increased feasibility of major growth of our GDP, will impact the development of this new chapter in relations between our countries," the ambassador said.

"The outlook for the outcome is very promising. It will be a more productive economy, more trade, investors and investments in our country. There will be access to more resources and more ways to make the most of them."

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