MercoPress. South Atlantic News Agency

Colombia/Argentina bilateral trade expected to reach 2 billion dollars in 2011

Minister Debora Giorgi says Colombia is a good market for industrial equipment and goods

Colombia/Argentina bilateral trade is set to reach 2 billion dollars, eight times its 2003 value, and remains favourable for Argentina, according to Minister of Industry Debora Girogi.

The Argentine minister said that prospects are even better since Colombia imports a significant share of its manufactured and industrial goods from outside the region. Giorgi specifically mentioned the auto industry as the most promising sector.

“Bilateral trade with Colombia advances year after year and in 2011 will be over 2 billion dollars, when back in 2003, it was only 246 million dollars” said Girogi adding that “only 24% of Colombia’s industrial imports come from Latin America which means there is a potential market of 25 billion dollars we must conquer for our business leaders and Argentine workers”.

Girogi said both countries are committed to expand trade particularly in the auto industry. In the first half of the year Argentina exported 50 million dollars of vehicles to Colombia which has a domestic market that absorbs 300.000 cars annually.

The minister revealed that to advance in the field, negotiations are ongoing with Argentina’s Automobile Manufacturers’ association together with Colombia’s National Business Association and the Colombian Automobile Association.

Minister Giorgi made the statements in the framework of the round of bilateral negotiations which are taking place Thursday in Buenos Aires because of Colombian president Juan Manuel Santos visit to Argentina where he has met with his peer Cristina Fernandez.

According to Argentine stats, Colombian industrial and manufactured imports totalled 33.7 billion dollars in 2010 of which, 25.6 billion (76%) out of the region and only 8.1 billion from Latin America.

Colombia with a population of 46 million has a GDP estimated at 285 billion dollars and foreign trade in 2010 totalled almost 78 billion dollars. Main exports are petroleum, coffee, coal, gold, cut flowers, chemicals, emeralds, cotton textiles, sugar, livestock and beef. Bogotá enacted this week an ambitious free trade agreement with Canada and is in the final round for an FTA with the United States. Colombia belongs to the Andean Community of Nations, CAN.

Argentina has a population of 42 million, and a GDP of 370 billion dollars. Foreign trade last year reached 125 billion dollars. Main exports are soybeans and derivatives, petroleum and gas, vehicles, corn, wheat, beef, fisheries and automobiles. Argentina is a full member of Mercosur and its main trade partners are Brazil and China.