Colombia appears to be economically well-developed country with the wide network of import and export relationship. The advantages of geographical location of the country allows it being almost autonomous in energy supply via the expenses of oil and coal, as well as the hydroelectric power stations. Colombian healthy diversified economic system is export-oriented, primarily exporting the coal and coffee. However, the country has several weaknesses, including the high rates of drug trafficking, corruption, and political instability, which deter the investors. Colombian industry remains almost uncompetitive. The country also experiences the high rates of unemployment, which were up to 11.3 % in 2008. The economy depends on the fluctuations of the world market prices for coffee. Due to cocaine exports, Colombia constantly faces problems in its foreign policy.
The main exports of Colombia include crude petroleum, which is equal to $25.7 billion per year, coal briquettes, which are equal to $7.59 billion, refined petroleum ($2.77 billion), coffee ($2.66 billion), and gold ($1.76 billion). Obviously, the top exports of Colombia consist of the country’s natural resources, extracted and transported throughout the world. Among the main imports of the country, the refined petroleum ($7.19 billion), cars ($2.61 billion), computers ($1.98 billion), planes, helicopters, and spacecraft ($1.97 billion), and broadcasting equipment ($1.74 billion) are the most significant (OEC-Colombia, 2014). Apparently, the country imports high-tech equipment, vehicles, and other engineering tools, which are not produced in Colombia.
Colombia sends its export production to the United States, China, Panama, Spain, and India. The countries, which import the necessary goods into Colombia, include the United States, China, Mexico, Germany, and Brazil. The Colombian share in world total exports was equal to 0.29 % of value in 2014, while its share in world total imports was equal to 0.34 %. The country participates in WTO and got the accession to it in 30 April 1995. Besides, Colombia strives to get GPA accession, although it is an observer of GPA for now. As a member of WTO, Colombia had five cases as complainant, which include the case against the USA about the imports of broom corn brooms, the case against Nicaragua about the effects of imports from Honduras, two cases against Chile about the measures on sugar, and the case against the European Communities about the importation of bananas. In 1997, Colombia contended that the adoption of a safeguard measure against imports of broom and corn brooms is inconsistent with the US obligations of the Agreement on Safeguards from 1994 (Dispute DS78, 2010).
Colombia is the country with a well-organized industrial property, since it has 2,264 patent grants by patent office in total per 2013. In total, Colombia presented 19,071 trademark registrations by office, which means the country supports trade improvements in small business. It is also important to mention that almost 18 % of the labors are employed in agriculture. Nearly 5 % of Colombian land is used for crops, 38 % for grazing. Analyzing the levels of export of coffee, it is possible to conclude that Colombia is the world’s second producer of coffee. For the mountain areas of the country, the mains cash crops are cotton and tobacco, while the lowlands are rich for such export crops as bananas, flowers, and sugar cane. Colombia grows rice, corn, potatoes, and sorghum for its domestic market. Apparently, Colombia is the country mainly dependent on export and rich for its natural resources. Precisely extracting the resources and exporting them to the other countries appear to be the basis of Colombian economy and the main source of its GDP.
- “Dispute DS78: United States – Safeguard Measure Against Imports of Broom Corn Brooms.” World Trade Organization. Web. https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds78_e.htm
- “OEC – Colombia.” The Observatory of Economic Complexity. Web. http://atlas.media.mit.edu/en/profile/country/col/