And in commemoration of 70th anniversary of the arrival of Colombian battalion in Korean war. The “SeoulCity” magazine had an interview with H.E. Juan Carlos Caiza Rosero, ambassador of Colombia to Korea for his point of view on the strengthening the bilateral economic and cultural ties between Colombia and Korea in the years to come. Following are the full texts of the interview.
Q. Please introduce the significance of your Independence Day, July 20th for our readers.
July 20 is the day that symbolizes Colombia’s independence from Spanish colonization. 2021 marks the 211th anniversary of the signing of the document known as “Declaration of the Revolution of 1810” origin of the constitutional process of the nation. Later, in 1873 the legislative branch known as Congress of the United States of Colombia officially decreed July 20th as the anniversary of the proclamation of national independence.
In that sense, this is the most important patriotic celebration in the country, and a celebration of its rich cultural heritage and diversity.
To commemorate the Colombia´s independence, every year military parades and cultural events are held throughout the country. However, because of coronavirus it is expected that many of those celebrations will take place virtually this year.
Q. Colombia and Korea are expecting 60th anniversary of the establishment of diplomatic relationship next year. Please tell us of your point of view on the finalization of FTA and other bilateral economic cooperation in 2022.
Colombia and Korea have enjoyed a very special relationship during these almost 60 years, and both countries have kept improving the different cooperation areas. As you may recall, our bilateral relation was elevated in 2011 to the status of “strategic cooperation partnership”, which reflected the deep political will in both countries to find new avenues for joint work.
In this regard, the negotiation and entry into force in 2016 of the bilateral Free Trade Agreement is a very significant landmark in the relation among our countries. The FTA granted gradual tariff elimination for 99% of all Colombian agricultural goods and immediate duty-free access for about 98% of all industrial goods. Since 2016, we see a robust increase in Colombian exports to Korea, particularly in agriculture, and its benefits are even more clearly now that several goods such as bananas and roses have concluded the tariff elimination period.
But an FTA is more than just the bilateral trade on goods. It is a tool to increase trade and investment, but also to diversify our bilateral cooperation and mutual complementarity, and to favor a closer relationship between our respective regions. There are many areas, such as infrastructure, healthcare, cosmetics, software, audiovisuals, biodiversity, energy and sustainability, that can offer new and interesting opportunities for investors.
Finally, I want to highlight that our bilateral relation can also serve as a bridge between our regions. In Latin America, the Pacific Alliance (composed by Chile, Mexico, Peru and Colombia) has become probably the most dynamic economic integration process, and a driving force for free trade in the region. Korea, which currently enjoys the status of observer, wants to become an associate member of the PA – this will mean the negotiation of a FTA with all the PA members. Colombia, as the current Chair of the PA, has expressed in different opportunities its full support to Korea, and expects the negotiations can start as soon as possible.
Q. What do you think are the most attractive industrial sectors for Korean investors to invest in Colombia?
During my term in Korea, I have found a growing interest from Korean companies to take advantage of the many opportunities offered by the Colombian economy and by the investment policies promoted by President Ivan Duque’s Administration.
Under the current administration, infrastructure is the main development sector prioritized by the Government to promote economic growth. Public investment grew from 0.6% in 2003 to 3% of GDP in 2018 and represented 8.6% of total FDI in 2019. According to the World Bank report “Procuring Infrastructure Public-Private Partnerships 2018”, Colombia is the third country worldwide with the most efficient PPP program to develop infrastructure.
Because of the Health emergency caused by the COVID-19 pandemic, the government prioritized investments for USD 5,288 million in PPP’s, as a reactivation strategy of the economy, with the aim of generating more than 90,000 jobs between 2020 – 2022.
Colombia has a diverse portfolio of infrastructure projects by 2035:
• Road: USD 60,000 million
• Airports: USD $ 5.700 Million
• Rail: USD 3.400 Million
• Fluvial: USD 1,600 Million
• Ports: USD 433 Million
A second promising area for Korean investors is Energy. The current administration has defined very ambitious objectives with the purpose to diversify the energy matrix, that aim to achieve that Colombia increases 50 times its installed capacity in the generation of non-conventional renewable energy, going from less than 50 MW in 2018 to 2,500 MW in 2022.
Colombia has one of the highest availabilities of energy resources worldwide: for Solar, our average daily radiation is 25% higher than the world average. For eolic energy projects, our wind speed is twice the world average. For Biomass, we have sufficient potential to supply 46% of national energy demand.
Colombia also presents opportunities in other sectors such as agribusiness, health and ICT. In Agribusiness, the country has approx. 20 million hectares available to develop new crops - this is the equivalent of two times the area of South Korea.
Regarding health, I expect to see new Korean companies expanding their footprint in Latin America, and for that Colombia offers great conditions to establish regional offices, as well as generate new research and development, taking advantage of the natural richness of Colombia and an outstanding diversity of natural resources that could be used for the pharmaceutical and cosmetic industry. Finally, opportunities such as Data Centers, establishment of IT operations in different verticals and to develop co-productions adding the human talent that can be found in the two countries.
Q. Please introduce Colombia's investment environment for Korean potential investors and introduce several outstanding Korean companies' activities in Colombia.
Colombia offers a responsible government committed to public health and economic recovery, which allows the country to capitalize 50 years of sustained economic growth to overcome the COVID-19 challenge; a government committed to the development of the private sector; an ideal nearshoring location thanks to a wide range of competitive advantages, including its location and its network of free trade agreements; and a well-developed tech ecosystem and the necessary standards to face the post-COVID-19 “new normal”. In 2020, a total of US $8,100 million in FDI arrived in the country. FDI in no-mining sectors represented 70.1%.
The National Government is committed to continue working on three main fronts: first, to accelerate economic growth and economic revival, as well as job creation. Second, to move forward consensus to enable the financing of social programs and, third, to achieve the stability of public finances. These are the pillars that will continue to be developed to maintain the confidence that markets have historically had in Colombia.
In 2020, Colombia has become the member number 37th of the Organization for Economic Co-operation and Development (OECD). In consequence, public institutions in Colombia will meet international standards of the developed world.
The middle class and its consumption potential in Colombia are rapidly expanding to reach half of the total population in the next decade.
Colombia has a competitive location with easy access to markets around the globe and has more than 17 trade agreements in force, enabling preferential access to over 60 countries and nearly 1,500 million consumers across markets including the United States, the European Union, Brazil, Mexico, Chile, Peru, Costa Rica and South Korea; with new markets to be added soon, like Israel Panama, with which Colombia has signed agreements. Additionally, Colombia is negotiating a Free Trade Agreement with Japan and an associate state figure through the Pacific Alliance with Canada, Australia, Singapore and New Zealand.
Finally, Colombia has 18 International Investment Agreements in force and 11 Double Taxation Agreements in force with major trading partners to ensure a stable and favorable legal framework for foreign investment.
Q. Please introduce tourist attractions in Colombia for Korean tourists abroad.
Colombia offers several top tourism destinations highlighted for the main tourism magazines and companies in World. Thanks to its location with beaches at both the Pacific and Caribbean Sea; with three mountain ranges that provide snow mountains across the country, and one of them considered the tallest mountain in front of the sea, which has indigenous communities living with their own traditions and customs, among other natural wonders. I would like to highlight three destinations and focus in three activities for the Korean travelers.
First, will be Cartagena, considered a unique city and one the most beautiful in Latin America. Full of history with its colonial street, surrounded by walls of more than 500 years, with outstanding international gastronomy, luxury stores and amazing nightlife. Second, will be the coffee region, with amazing landscapes such Cocora Valley with several wax palms 60-meter-tall, hot springs mixed with natural waterfalls, and indeed coffee plantation where visitors can experience the entire process of the best coffee of the World. And finally, Caño Cristales river, which is a river that contains plants of several colors, so you will be able to enjoy a river with blues, reds, purples, yellows, greens, mixed like unsurrealistic painting.
These destinations are ideal for honeymooner couples that are looking for exotic and unique destinations, as these places are romantic and unique. Also, Colombia is consolidating itself as trekking country with impressive routes, in rivers such as Caño Cristales and what we call the lost city route, which basically visitors can walk through a mountain where will find different rivers to swim, interact with indigenous communities, and finally get to an indigenous city that never was found by the Spaniard colonizers (from there the name of Lost City). Finally, Colombia landscapes are ideal to do route cycling. Not in vain, Colombia is famous worldwide by leading cyclists in Europe´s major competition such as Tour of France, Giro di Italia and La Vuelta España.
Q. Please let us know your point of view on how to strengthen further the close economic ties between Korea and Colombia in order to expand trade and investment opportunities in various industrial sectors.
As mentioned above, we start from a very solid foundation: a very special and deep political relation that keeps strengthening and finding new ways for mutual cooperation and the benefit of our people. A comprehensive FTA, that now in its fifth years is offering new opportunities to diversify the bilateral exchange, and that also gives clear, predictable conditions to develop new business. A close, frequent dialogue between our agency that helps to ensure agreements are implemented and new projects are discussed.
I believe the next step should be to bring our business communities closer. We need to find the right channels so investors can discuss all the different opportunities to take advantage of, but also to share our mutual knowledge and to exchange experiences. Just to give one example: Korea and Colombia have been quite successful in the field of music, with many worldwide popular artists. A collaboration between our industries may help us to define new styles and rhythms, and to reach for an even wider audience, while at the same time we find ways to enrich.