Diapositiva 1

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Colombia A Golden Opportunity
In Agri-business
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1. Colombias Panorama 2. Why invest in
Agri-business 3. Sector Trends 4. Proexport
Services
GDP at current prices Source Presidency of
Colombia, Central Bank (Banco de la República)
Proexport. Exchange rate US 1 COP 2014
(Average rate for 2007)
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• Colombias Panorama
• 2. Why invest in Agri-business
• 3. Sector Trends
• 4. Proexport Services

GDP at current prices Source Presidency of
Colombia, Central Bank (Banco de la República)
Proexport. Exchange rate US 1 COP 2014
(Average rate for 2007)
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General information

• Official name Republic of Colombia
• Capital Bogota, 7 Million
• GDP (2007) USD 172,000 Million
• Population (2007) 43.9 Million (77 urban, 23
  rural)
• GDP per capita (2007) USD 3,918
• GDP per capita at PPP (2007) USD 9,300
• GDP Growth (2007) 7.52
• Inflation (2007) 5.69
• Exports (2007) USD 29,991 Million
• Imports (2007) USD 32,899 Million
• FDI (2007) USD 9,028 Million
• Literacy rate 92.1
• Currency Colombian Peso (COP)

GDP Current prices Source Central Bank,
Proexport and Presidency of Colombia Exchange
Rate USD 1 COP 2014 (2007 Average rate)
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Colombias economic growth since year 2001 has
outpaced that of the Latin American region
GDP Growth Colombia vs. Latin America (1999
2007)
Source Economic Commission for Latin America and
the Caribbean (ECLAC), DANE, Forecasts ECLAC and
National Planning Department, and World Economic
Forum for Latin America in 2007
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Colombias significant market potential
GDP in Latin America (2007) Current Prices, USD
Billion
Population in Latin America (2007) Million of
inhabitants
Source International Monetary Fund and World
Bank 2007
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FDI increased by 323 since 2000
FDI Flows (2000-2007 ) USD Million
Sab Millers investment USD 5,525 M
Source Balance of Payments, Central Bank
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Exports increased by 150 since 2002
Exports (2000 2007) USD Million
Source DANE, Proexport
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Foreign visitors to Colombia doubled since 2005
Foreign Passenger Arrivals to Colombia (2000
2010) Number of Travelers (Millions)
Source Security Administration Department
DAS G Goal
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Agreements to facilitate investments (2010 plan)
Double Taxation Agreements DTSs

Investment Agreements BITs
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Access to global markets (2010 plan)
Negotiation agenda through 2010
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1. Colombias Panorama 2. Why invest in
Agri-business 3. Sector Trends 4. Proexport
Services
GDP at current prices Source Presidency of
Colombia, Central Bank (Banco de la República)
Proexport. Exchange rate US 1 COP 2014
(Average rate for 2007)
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We have appropriate land available for
agroindustrial production
Potential of 10.4 million hectares for
agriculture and 24.1 million hectares for cattle
raising
Millones hec t areas
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Because exports of the sector have grown by 56
since 2004
Exports of the Agroindustrial sector totalized
US 4,095 million in 2007
US Million FOB
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Because we have multiple climates to grow
different products
Vegetables
Fruit
Potential products Pitahaya, mango, small
bananas, Tahití lemon, feijoa, avocado, physalis,
pineapple, passion fruit, lulo, black berry,
granadilla and sweet tomato.
Potential products chili pepper, asparagus, bulb
onion, broccoli, cauliflower, gourmet lettuce,
eggplant and artichoke
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Because the country will be certified as Aphthous
free in 2008
Between 1980 and 2007, Colombia invested 87
million dollars to eradicate aphthous fever

• Area considered free, without vaccination 1997
• Area considered free, without vaccination 2001,
  2003, 2005
• Area recognized in 2007
• Area to be recognized 2008
• Protection area

Fuente Fedegan
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Because we are the third country manufacturing
dairy products in Latin America
Source Datamonitor 2008
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Our Free Trade Zones The most competitive ones
in Latin America 15 income tax allowing sales
to the local markets

• Income tax 15, even for income derived from
  domestic market sales
• No customs duties caused or paid (VAT, CUSTOM
  DUTIES)
• VAT exemption for raw material, feedstock and
  finished goods sold from national customs
  territory to FTZ industrial users
• Exports from FTZ to third countries that benefit
  from international trade agreements. (Except for
  Perú)
• Machinery coming from abroad that is directly
  related to the business operation has no customs
  taxes.
• Easy and fast tax procedures

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Types of Free Trade Zones
They may be new or not. They operate under the
scheme of a park where the companies there
develop their industrial activities related to
goods, services or business.
PERMANENT FREE TRADE ZONE
Authorized so that one company, on its premises,
carries out industrial activities related to
goods or services.
SPECIAL OR SINGLE ENTERPRISE PERMANENT FREE TRADE
ZONE
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Permanent Free Trade Zone in accordance with its
assets (Industrial User Goods)
Companies expecting to be recognized as
Industrial Users of Goods must meet requirements
related to investment and generation of jobs in
accordance with their assets
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Single Enterprise Free Trade Zone of Goods
Each additional investment for US 5.9 billions
reduces 15 jobs. In any event, they must
generate 50 jobs.
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Tax benefits for food

• Deduction of 40 on the value of investments only
  on Real Productive Fixed Assets (AFRP for the
  Spanish acronym) acquired.
• Reduction of 100 on taxes related to industry,
  trade, adds and boards, and real estate providing
  they are paid in the corresponding fiscal year
  and they have a cause relation with the
  contributors economic activity.
• Deduction of 25 of taxes on financial movements,
  regardless of their relationship with the
  economic activity of the tax payer.
• VAT exemption for products to be exported.
• Vallejo Plan VAT exemption for temporary import
  of raw material and input to manufactured goods
  for exports

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Because of our tax incentives

• Some deductions are
• Deduction of 40 on the value of investments only
  on Real Productive Fixed Assets (AFRP for the
  Spanish acronym) acquired.
• Reduction of 100 on taxes related to industry,
  trade, adds and boards, and real estate providing
  they are paid in the corresponding fiscal year
  and they have a cause relation with the
  contributors economic activity.
• Deduction of 25 of taxes on financial movements,
  regardless of their relationship with the
  economic activity of the tax payer.
• Deduction of 125 of income tax on science and
  technology projects.
• VAT exemption for products to be exported.
• Vallejo Plan VAT exemption for temporary import
  of raw material and input to manufactured goods
  for exports

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Colombia offers legal stability contracts to
guarantee the investments
Guarantee the legislation and determine
administrative interpretation for investment
projects
Objective

• Amounts above US 1,900,000
• Payment of a 1 premium on the investment made to
  the State

Conditions
Term
3 to 20 years
Admission
Evaluation and approval
Technical Evaluation Report
Evaluation and approval of the
request
Regulations on taxes or mandatory investments
during exception conditions, social safety,
indirect taxes, regulations on the financial
sector, utility rates are excluded
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• Colombias Panorama
• 2. Why invest in Agri-business
• 3. Sector Trends
• 4. Proexport Services

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Main destinations of agroindustrial exports
Agroindustry Destination of Exports
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Main agriculture products exported in 2007
Excluding bananas
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Main agroindustrial products exported
SUGAR AND HONEY
ALCOHOLIC AND NON ALCOHOLIC BEVERAGES
MEAT
COCOA DERIVATES
COFFEE DERIVATES
PROCESSED FRUIT VEGETABLES
TOBACCO INDUSTRY
DAIRY PRODUCTS
DIFFERENT FOOD PREPARATIONS
SWEETS
BREAD AND MILLING PRODUCTS
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Main frozen products exported in 2007
Pre-cooked and frozen fruit
Frozen potatoes
Prepared vegetables
Fresh frozen vegetables
Frozen chicken
Frozen strawberries
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Main cattle products exported in 2007
Meat
Cattle
By-products of animal origin
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1. Colombias Panorama 2. Why invest in
Agri-business 3. Sector Trends 4. Proexport
Services
GDP at current prices Source Presidency of
Colombia, Central Bank (Banco de la República)
Proexport. Exchange rate US 1 COP 2014
(Average rate for 2007)
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Proexport will provide you with world class
services

• Customized Information
• Contacts with the public and private sectors
• Agendas Organization of, and accompaniment
  during visits to Colombia
• Installed investors service
• Free and confidential All services are free and
  all information provided in the process is
  treated as confidencial.

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Offices of Proexport abroad
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