Macroeconomic trade context

Annual trade volume, 2024

• Total exports: US$49.5 billion (FOB), ↓ 0.4% from 2023
• Total imports: US$64.1 billion (CIF), ↑ 2.1% from 2023
• Merchandise trade balance: US$10.8 billion deficit (FOB-FOB basis), ↑ 11.7% from 2023
• Exports per capita: US$964 (126th globally)
• Imports per capita: US$1,190 (142nd globally)
• Global export rank: 59th out of 226
• Global import rank: 53rd out of 226
• GDP: US$419 billion (38th globally)
• GDP per capita: US$8,200 (98th globally)
• Currency: Colombian peso (COP), floating exchange rate
• Economic Complexity Index (trade): 50th out of 130 (ECI: 0.20, 2024)
• Economic Complexity Index (technology): 41st out of 96 (ECI: 0.53, 2021)
• Economic Complexity Index (research): 27th out of 138 (ECI: 0.91, 2024)

Key trade trends, 2024

Geographic distribution, 2024

Export markets (US$49.5 billion FOB)

Import origins (US$64.1 billion CIF)

Trade balance by major partner, 2024

Alternative data (La República)

• China deficit: US$12.91 billion
• United States deficit: US$11.89 billion
• Mexico deficit: US$11.75 billion
• Canada deficit: US$2.89 billion
• Venezuela surplus: US$882 million

Sources: La República (ANIF) · OEC · OEC (Spanish edition) · TAITRA

Detailed export product analysis

A. Extractive industries (47.2% of total exports)

1. Crude petroleum: US$12.1 billion

• Share of total exports: about 24%
• Annual change: ↓ 10.6% (extractives category)
• Primary destinations: United States, Panama, India, China
• Key company: Ecopetrol (majority state-owned)

2. Coal, briquettes and solid fuels: US$6.83 billion

• Share of total exports: about 14%
• Primary destinations: Asia, Europe, the Americas
• Major mines: Cerrejón (one of the world’s largest open-pit coal mines), Drummond

3. Gold: US$3.7 billion

• Share of total exports: about 7.5%
• Primary destinations: United States, Switzerland, Canada

4. Refined petroleum: US$2.65 billion

• Share of total exports: about 5.3%
• Products: gasoline, diesel, fuel oil
• Primary destinations: regional markets (Ecuador, Peru, Chile)

B. Agricultural products (strong growth: ↑ 14.0%)

1. Coffee: US$3.6 billion

• Share of total exports: about 7.3%
• Annual growth: ↑ 21.8%
• Global position: the world’s 3rd largest coffee producer (after Brazil and Vietnam)
• Types: Arabica (premium washed arabica)
• Primary destinations: United States, Germany, Japan, Canada
• Price driver: international coffee prices at record highs

2. Other agricultural products

• Bananas: significant exporter
• Cut flowers: the world’s 2nd largest exporter (after the Netherlands)
• Avocados: growing export sector
• Sugar and derivatives
• Cocoa: premium fine-flavour cocoa

C. Top exports (2024)

D. Services exports

• Travel and tourism: a growing sector after the pandemic
• Transport services: aviation, logistics
• Business services: consulting, professional services
• Digital services: software, IT services (emerging)

Sources: OEC (product values) · La República (ANIF) (growth rates)

Detailed import product analysis

A. Manufactured goods (↑ 3.9%, contributing +2.8 pp to import growth)

1. Refined petroleum: US$4.2 billion

• Share of total imports: about 6.5%
• Primary sources: United States, regional suppliers

2. Cars: US$2.93 billion

• Share of total imports: about 4.6%
• Primary sources: Mexico, Brazil, China, South Korea, Japan
• Growth: ↑ 101.4% (vehicle imports from China)

3. Telephones: US$2.42 billion

• Share of total imports: about 3.8%
• Primary sources: China, Vietnam, United States

4. Packaged medicaments: US$2.19 billion

• Share of total imports: about 3.4%
• Primary sources: United States, Germany, Switzerland, India

5. Corn: US$1.57 billion

• Share of total imports: about 2.5%
• Primary sources: United States, Brazil, Argentina

B. Chemical products (↑ 6.9%, contributing +2.0 pp to import growth)

• Chemical products and related industries
• Plastics and articles thereof
• Fertilisers: for the agricultural sector
• Primary sources: United States, China, Germany, Brazil

C. Machinery and equipment

• Computers and laptops: significant; ↑ 28.0% from China
• Industrial machinery: major import category
• Electrical equipment: growing imports

D. Top imports (2024)

Sources: OEC (product values) · La República (ANIF) (growth rates)

Trade procedures and regulations: deep dive

A. Customs legal framework

1. Primary authorities

• Dirección de Impuestos y Aduanas Nacionales (DIAN): the National Tax and Customs Directorate
• Ministerio de Comercio, Industria y Turismo: the Ministry of Trade, Industry and Tourism
• Ventanilla Única de Comercio Exterior (VUCE): the Foreign Trade Single Window

2. Legal basis

• Decreto 1165 de 2019: Customs Code (primary legislation)
• Decreto 659 de 2024: major amendment to the Customs Code (22 May 2024)
• Decreto 925 de 2013: import licensing framework
• Circular 4 de 2024: guide to import requirements and permissions

3. International memberships

• WTO member: since 1995
• Andean Community (CAN): founding member with Peru, Ecuador and Bolivia
• Pacific Alliance: founding member with Chile, Mexico and Peru
• Trade Agreement with the EU: fully in force since 1 November 2024

4. Key trade agreements

B. Major regulatory reforms of 2024

1. Decreto 659 de 2024 (22 May 2024): customs modernisation

Effective date: partially effective from 7 June 2024; full implementation depends on DIAN system updates

Exemptions from the advance declaration:

• Imports from free trade zones
• Corrections, amendments and legalisation declarations
• Electrical energy imports
• Oil and liquid fuels derived from petroleum
• Initial declaration of urgent delivery
• Postal traffic and urgent shipments

Late submission penalty: reduced to 80% of 1% of the FOB value if the declaration is submitted and the fine is paid so that it becomes legally valid

2. Circular 4 de 2024 (8 March 2024): import requirements guide

Purpose: adopts and publishes the “Guide of requirements, permits and prior authorisations for import registration and licence applications through VUCE”

Entities involved in the prior licence regime:

• Consejo Nacional de Estupefacientes
• Fondo Nacional de Estupefacientes
• Industria Militar Colombiana (Indumil)
• XIII Brigada del Ejército Nacional
• Agencia Nacional de Hidrocarburos (ANH), for tariff exemptions
• Agencia Nacional de Minería (ANM), for tariff exemptions
• Ministerio de Relaciones Exteriores, for tariff exemptions

Entities involved in the free import regime:

• Autoridad Nacional de Acuicultura y Pesca (Aunap)
• Instituto Colombiano Agropecuario (ICA)
• Instituto Nacional de Vigilancia de Medicamentos y Alimentos (Invima)
• Ministerio de Agricultura y Desarrollo Rural
• Ministerio de Minas y Energía
• Servicio Geológico Colombiano (nuclear and radioactive materials)
• Ministerio de Transporte
• Superintendencia de Industria y Comercio (SIC)
• Superintendencia de Vigilancia y Seguridad Privada
• Autoridad Nacional de Licencias Ambientales (ANLA)
• Ministerio de Ambiente y Desarrollo Sostenible
• Ministerio de Justicia y del Derecho

Sources: EY Tax News · Legal Daily · Circular 4 de 2024 (Cancillería) · EUR-Lex · Council of the EU

C. Import procedures

1. Import documentation requirements

Mandatory documents:

1. Commercial invoice: detailed description, HS code, value
2. Bill of lading or air waybill
3. Packing list
4. Certificate of origin (for preferential tariff claims)
5. Import registration or licence: through the VUCE system
6. Prior permits and authorisations: from the relevant entities (ICA, Invima, etc.)

2. Import regimes (Decreto 925 de 2013)

A. Prior licence regime:

• Applicable to: goods in Annex 1 of Decree 925/2013, special conditions, tariff exemptions, controlled substances (FNE, Indumil), military and defence goods
• Requirements: prior authorisation from the relevant entities before import registration
• Processing: through the VUCE system

B. Free import regime:

• Applicable to: most goods, subject to entity controls
• Requirements: import registration through VUCE, compliance with entity requirements
• Controls exercised by: 12+ entities (ICA, Invima, ANLA, etc.)

C. Prohibited imports:

• Goods classified in Annex 1 (Article 81 of the Constitution or international conventions)
• The VUCE system blocks registration attempts

3. Import registration process

1. Pre-requisite verification: check Annexes 1–27 for product-specific requirements
2. VUCE submission: file the import registration or licence through www.vuce.gov.co
3. Entity review: VUCE directs the application to the relevant entities for approval
4. Registration approval: once all permits have been obtained
5. Customs clearance: present the approved registration to DIAN for the import declaration

4. Customs clearance process

1. Advance declaration (Decreto 659/2024): submit at least 48 hours before arrival; required for all imports (with exemptions)
2. Risk assessment: DIAN risk management system; channel selection
3. Selective inspection: modernised procedures that minimise inspector movement; faster examination and release
4. Duty and tax payment: customs duties calculated; VAT and other taxes paid; electronic payment through DIAN
5. Release: customs release order; goods delivered to the importer

D. Taxation and duties

1. Customs duties

General structure:

• Average MFN tariff: varies by product
• Andean Community Common External Tariff: harmonised with Peru, Ecuador and Bolivia
• Preferential rates: under FTAs (US, EU, Canada, Mexico, Chile, Korea)

FTA preferences:

• United States: 0% on qualifying goods (since 2012)
• European Union: 0% on most goods (fully in force since 2024)
• Canada: 0% on qualifying goods
• Mexico: preferential under the Pacific Alliance
• Chile: preferential under the Pacific Alliance
• South Korea: 0% on qualifying goods

2. Value added tax (IVA)

• Standard rate: 19%
• Zero-rated: exports
• Exempt: certain goods and services
• VAT on imports: due upon customs clearance

3. Other taxes

• Consumption tax: 8–16% on certain goods (vehicles, telecommunications)
• National tax: varies; applies to specific products

E. Special trade regimes

1. Free trade zones

Free zone benefits:

• Duty-free imports
• VAT exemption
• Income tax rate of 20% (against the standard 35%)
• Simplified procedures

2. Permanent customs zones

• Designated areas with streamlined procedures
• Located at major ports and airports

3. Temporary admission

• Goods imported for a specific purpose and re-export
• Exhibitions, professional equipment, samples
• Time limit: usually 6 months
• Security: bank guarantee

4. Bonded warehousing

• Storage without duty payment
• For re-export or subsequent local release

F. Sector-specific regulations

1. Agricultural and food products (ICA)

• Phytosanitary certificates for plant products
• Veterinary certificates for animal products
• ICA import permits
• Health and safety compliance
• Spanish labelling

2. Pharmaceutical and food products (Invima)

• Sanitary registry: required for pharmaceuticals, medical devices and food supplements
• Health permits: for food, beverages and cosmetics
• GMP certification: for pharmaceuticals
• Product notification: for cosmetics and food
• Invima inspection: at ports of entry

3. Chemicals and hazardous materials

• Ministry of Environment permits (ANLA)
• Safety data sheets (SDS): in Spanish
• Import licences for controlled chemicals

4. Telecommunications equipment

• Type approval: from the Ministry of ICT
• Technical standards compliance
• Import permits required

5. Arms, explosives and controlled substances

• Indumil authorisation: military industries
• FNE/CNE authorisation: narcotics control
• Ministry of Justice: controlled chemicals
• XIII Brigada: military authorisation

6. Nuclear and radioactive materials

• Servicio Geológico Colombiano authorisation

G. Compliance and enforcement

1. Penalties for violations

UVT (Unidad de Valor Tributario) 2024: approximately COP 47,065 (about US$11.80)

2. Appeals process

• Administrative appeal to DIAN
• Judicial review by the administrative courts

3. Post-clearance audit

• Risk-based selection
• Valuation verification
• Classification review
• Origin verification

Sources: Circular 4 de 2024 (Cancillería) · EY Tax News · Legal Daily

Trade agreements network

A. Multilateral agreements

B. Bilateral and regional FTAs

C. Rules of origin

General criteria

• Change in tariff classification (CTC)
• Regional value content (RVC) of 35–50%, depending on the agreement
• Specific processes for certain products

Documentation

• Certificate of origin issued by authorised entities
• Self-certification available for approved exporters

Major trade infrastructure

A. Ports

Caribbean coast

Pacific coast

B. Airports

C. Land border crossings

D. Transportation infrastructure

Highways

• Ruta del Sol: Bogotá – Caribbean coast
• Pacific connection: Buenaventura – Bogotá corridor
• Pan-American Highway: north–south spine

Railways

• Limited freight rail: mainly coal exports (Cerrejón railway, Drummond railway)
• Passenger rail: limited, mostly tourist services

Rivers

• Magdalena River: major inland waterway (navigation projects ongoing)
• Amazon River: Amazon basin trade

E. Free trade zones and logistics platforms

• Zona Franca de Bogotá: the largest multi-purpose free trade zone
• Zona Franca de Cartagena: industrial and port free trade zone
• Zona Franca de Barranquilla: port and industrial free trade zone
• Centro de Logística Internacional (CLI): international logistics centres

Emerging trends and future developments

A. Trade balance dynamics

2024 performance

• Trade deficit: US$10.8 billion (↑ 11.7% from 2023)
• Export decline: −0.4%
• Import growth: +2.1%
• Extractives exports: 47.2% of total, ↓ 10.6%
• Agricultural exports: ↑ 14.0% (led by coffee: ↑ 21.8%)

B. EU–Colombia Trade Agreement: full implementation

Key dates

• 14 October 2024: the Council of the EU adopted the decision to conclude the agreement
• 1 November 2024: the agreement fully entered into force
• Previously: provisional application since 2013

Benefits

• Full legal certainty for the trade relationship
• Comprehensive coverage: goods, services, intellectual property, public procurement
• Bilateral dispute settlement mechanism
• Mediation system for non-tariff barriers
• Trade and Sustainable Development chapter with an arbitration system

EU–Andean countries trade (2023): about €33 billion in total

C. Regulatory modernisation, 2024–2025

Decreto 659 de 2024

• Advance declaration mandatory
• Streamlined selective inspection
• Reduced clearance times
• Enhanced anti-smuggling measures
• Document digitalisation

Circular 4 de 2024

• Consolidated guide to import requirements
• Transparent entity controls
• Simplified user guidance

D. Export diversification

Agricultural growth

• Coffee exports ↑ 21.8% (record prices)
• Agricultural sector ↑ 14.0% overall
• Non-traditional exports expanding

Extractives challenge

• 47.2% of exports, but ↓ 10.6%
• Need for diversification beyond oil and coal

E. China’s growing role

Import surge

• Computers and laptops from China: ↑ 28.0%
• Vehicles from China: ↑ 101.4%
• Largest trade deficit: US$13.3 billion

Export opportunity

• China is the No. 4 export destination (US$2.5 billion)
• Potential for agricultural exports (coffee, beef, fruits)

F. Venezuela border dynamics

• Trade surplus with Venezuela: US$870 million
• Border reopening after years of closure
• Potential for increased bilateral trade

G. Challenges and opportunities

Challenges

• Commodity dependence (oil, coal, coffee)
• Large trade deficit (US$10.8 billion)
• Infrastructure gaps (roads, ports, rail)
• Border instability (Venezuela)
• Competition from Asian imports

Opportunities

• Full implementation of the EU FTA (2024)
• Agricultural export growth (coffee, flowers, fruits)
• Nearshoring potential for manufacturing
• Green energy transition (renewables, hydrogen)
• Services exports (digital, IT, business services)
• Pacific Alliance integration

Sources: FocusEconomics · La República (ANIF) · TAITRA · Council of the EU · EUR-Lex

Key contacts and resources

A. Government agencies

1. Dirección de Impuestos y Aduanas Nacionales (DIAN): dian.gov.co · customs administration, tax collection
2. Ministerio de Comercio, Industria y Turismo: mincit.gov.co · trade policy, FTAs, trade promotion
3. Ventanilla Única de Comercio Exterior (VUCE): vuce.gov.co · single window for import and export procedures
4. ProColombia: procolombia.co · export promotion, investment attraction
5. Departamento Administrativo Nacional de Estadística (DANE): dane.gov.co · trade statistics, economic data
6. Instituto Colombiano Agropecuario (ICA): ica.gov.co · agricultural and livestock imports and exports
7. Instituto Nacional de Vigilancia de Medicamentos y Alimentos (Invima): invima.gov.co · pharmaceuticals, food, medical devices
8. Autoridad Nacional de Licencias Ambientales (ANLA): anla.gov.co · environmental licences
9. Ministerio de Ambiente y Desarrollo Sostenible: minambiente.gov.co · environmental regulations
10. Superintendencia de Industria y Comercio (SIC): sic.gov.co · consumer protection, competition

B. Business organisations

1. Asociación Nacional de Empresarios de Colombia (ANDI): andi.com.co · national business association
2. Cámara de Comercio de Bogotá: ccb.org.co · certificate of origin, business services
3. Cámara de Comercio de Medellín: camaramedellin.com.co
4. Cámara de Comercio de Cali: ccc.org.co
5. Analdex (Asociación Nacional de Comercio Exterior): analdex.org · foreign trade association
6. Fenalco (Federación Nacional de Comerciantes): fenalco.com.co

C. Trade portals and digital platforms

D. Practical guidance for traders

For exporters to Colombia

1. Advance declaration required: all imports must be declared at least 48 hours before arrival (Decreto 659/2024)
2. VUCE registration: all imports must be registered through the Ventanilla Única de Comercio Exterior
3. Check Annexes 1–27: verify product-specific requirements in the Circular 4/2024 guides
4. Entity approvals: obtain prior permits from ICA (agriculture), Invima (pharmaceuticals and food) or other entities as required
5. Prohibited goods: check Annex 1 for prohibited items (VUCE blocks registration)
6. FTA preferences: claim preferential tariffs under the US, EU, Canada and Korea FTAs
7. EU FTA (November 2024): full implementation is now in effect
8. Documentation: complete commercial invoice, packing list, bill of lading and certificates
9. Spanish labelling: mandatory for all consumer products

For importers from Colombia

1. Certificate of origin: obtain it from chambers of commerce or ANDI
2. FTA claims: available under multiple agreements
3. Quality certificates: ICA for agricultural products, Invima for food and pharmaceuticals
4. Coffee exports: Federación Nacional de Cafeteros (FNC)
5. Coal and oil: direct from producers (Cerrejón, Drummond, Ecopetrol)

Economic impact and strategic position

A. Trade balance dynamics

2024 drivers

• Export contraction: extractives ↓ 10.6%
• Import growth: manufacturing ↑ 3.9% (vehicles from China ↑ 101.4%, computers ↑ 28.0%)
• Agricultural offset: coffee ↑ 21.8%

B. Global strategic position

1. Coffee powerhouse: the world’s 3rd largest producer, premium arabica
2. Coal exporter: a major global supplier
3. Flower leader: the world’s 2nd largest cut flower exporter
4. Oil producer: a significant Latin American producer (Ecopetrol)
5. Andean hub: a strategic location bridging South and Central America
6. Pacific Alliance member: a platform for Asia-Pacific trade
7. EU FTA partner: full implementation in 2024

C. Competitiveness indicators

D. Challenges

1. Commodity dependence: oil, coal and coffee are subject to price volatility
2. Trade deficit: US$10.8 billion and widening
3. Extractives decline: 10.6% export contraction
4. Chinese competition: the largest trade deficit (US$13.3 billion)
5. Infrastructure gaps: ports, roads, rail limitations
6. Venezuela border: periodic instability
7. Illegal trade: customs reforms targeting smuggling

E. Opportunities

1. Full implementation of the EU FTA: enhanced market access since November 2024
2. Agricultural exports: coffee (+21.8%), flowers, avocados, beef
3. Nearshoring: potential for manufacturing investment
4. Pacific Alliance integration: a platform for Asian trade
5. Green transition: renewable energy, hydrogen potential
6. Digital economy: growth in services exports
7. Customs modernisation (2024): reduced clearance times

Sources: FocusEconomics · La República (ANIF) · OEC · EY Tax News

Summary of Colombia’s trade characteristics

1. Extractives dominance: 47.2% of exports come from oil, coal and mining, but they fell 10.6% in 2024
2. Coffee strength: US$3.6 billion in exports, ↑ 21.8% (record prices); the world’s 3rd largest producer
3. Widening trade deficit: US$10.8 billion deficit in 2024, ↑ 11.7% from 2023
4. The US as primary partner: 28.9% of exports, 25.7% of imports
5. China surge: No. 2 import source (24.9%), with the fastest-growing imports (vehicles ↑ 101.4%, computers ↑ 28.0%)
6. Full implementation of the EU FTA: the agreement has been fully in force since 1 November 2024
7. 2024 customs reform: Decreto 659/2024 mandates a 48-hour advance declaration, streamlines inspections and strengthens anti-smuggling measures
8. VUCE single window: all import and export procedures go through the ventanilla única
9. Pacific Alliance member: a strategic platform for Asia-Pacific trade with Chile, Mexico and Peru
10. Economic complexity progress: ranked 50th globally (trade), 41st (technology) and 27th (research)

Colombia is a diversified Latin American economy in transition from dependence on extractives towards agricultural strength and manufacturing development. With 47.2% of exports coming from oil and coal, and extractives contracting 10.6% in 2024, Colombia faces pressure to diversify, while agriculture shows promise (coffee +21.8%). The trade deficit widened to US$10.8 billion, driven by strong import growth from China (vehicles +101.4%, computers +28.0%) and weak extractives performance.

The 2024 regulatory landscape saw major modernisation. Decreto 659/2024 mandates 48-hour advance declarations, streamlines selective inspection and strengthens anti-smuggling measures. Circular 4/2024 consolidated import requirements across 12+ entities through the VUCE single window. The EU–Colombia Trade Agreement achieved full implementation on 1 November 2024, providing legal certainty and comprehensive coverage for goods, services and investment.

Colombia’s trade future depends on using its agricultural strengths (coffee, flowers, avocados), capturing the benefits of the EU FTA, integrating with its Pacific Alliance partners and diversifying beyond extractives, while managing the widening trade deficit and Chinese competition. The country’s strategic position bridging South and Central America, together with its Pacific Alliance membership, provides unique advantages for regional and Asia-Pacific trade.

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