TRADE POLICY REVIEW

REPORT BY THE SECRETARIAT

COLOMBIA

Revision

This report, prepared for the Trade Policy Review of Colombia, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Colombia on its trade policies and practices.

Any technical questions arising from this report may be addressed to Ms Eugenia Lizano (tel. 022 739 6578), Mr Carlos Perez del Castillo (tel. 022 739 5336), Ms Stephanie Dorange‑Patoret (tel. 022 739 5497) or Ms Varinia Gonzales (tel. 022 739 6894).

Document WT/TPR/G/472 contains the policy statement submitted by or Colombia.

This report was drafted in Spanish.

CONTENTS

SUMMARY. 7

1  ECONOMIC ENVIRONMENT. 11

1.1  Main features of the economy. 11

1.2  Recent economic developments. 14

1.2.1  Fiscal policy. 16

1.2.2  Monetary and exchange rate policy. 18

1.2.3  Balance of payments. 20

1.3  Trade in goods and services. 22

1.3.1  Trends and patterns in trade in merchandise and services. 23

1.3.2  Trends and patterns in FDI 27

2  TRADE AND INVESTMENT REGIMES. 29

2.1  General framework. 29

2.2  Trade Policy formulation and objectives. 30

2.3  Trade agreements and arrangements. 32

2.3.1  WTO. 32

2.3.2  Regional and preferential agreements. 33

2.3.3  Other agreements and arrangements. 35

2.4  Investment regime. 35

2.4.1  Investment incentives. 37

3  TRADE POLICIES AND PRACTICES BY MEASURE. 39

3.1  Measures directly affecting imports. 39

3.1.1  Customs procedures, valuation, and requirements. 39

3.1.2  Rules of origin. 41

3.1.3  Tariffs. 42

3.1.3.1  Structure and features of the MFN tariff 42

3.1.3.2  Preferential tariffs. 46

3.1.3.3  Tariff quotas. 48

3.1.3.4  Tariff concessions. 48

3.1.4  Other charges affecting imports. 51

3.1.4.1  Sales tax (VAT) 51

3.1.4.2  National consumption tax (INC) 51

3.1.4.3  National carbon tax. 52

3.1.4.4  National tax on petrol and engine fuel oils. 53

3.1.4.5  Tax on single-use plastic. 54

3.1.4.6  Health-related taxes. 54

3.1.5  Import prohibitions, restrictions, and licensing. 54

3.1.5.1  Import licensing. 54

3.1.5.2  Automatic licensing (import registration) 55

3.1.5.3  Non-automatic licences (prior licences) 55

3.1.6  Anti-dumping, countervailing, and safeguard measures. 57

3.1.6.1  Anti-dumping measures. 57

3.1.6.2  Countervailing measures. 60

3.1.6.3  Safeguards. 60

3.2  Measures directly affecting exports. 62

3.2.1  Customs procedures and requirements. 62

3.2.2  Taxes, charges, and levies. 64

3.2.3  Export prohibitions, restrictions, and licensing. 65

3.2.4  Export support and promotion. 65

3.2.5  Export finance, insurance, and guarantees. 68

3.3  Measures affecting production and trade. 68

3.3.1  Incentives. 68

3.3.1.1  Free zones. 69

3.3.1.2  MSMEs. 71

3.3.2  Standards and other technical requirements. 72

3.3.2.1  Standardization. 73

3.3.2.2  Technical regulations. 74

3.3.2.3  Conformity assessment, accreditation, and certification. 75

3.3.2.4  Metrology. 75

3.3.3  Sanitary and phytosanitary requirements. 76

3.3.4  Competition policy and price controls. 78

3.3.4.1  Competition policy. 78

3.3.4.2  Price controls. 80

3.3.5  State trading and state-owned enterprises. 81

3.3.5.1  State trading. 81

3.3.5.2  State-owned enterprises. 83

3.3.6  Government procurement 84

3.3.7  Intellectual property rights. 88

4  TRADE POLICIES BY SECTOR. 94

4.1  Agriculture, forestry and fisheries. 94

4.1.1  Agriculture. 94

4.1.2  Measures affecting imports and exports. 96

4.1.3  Support measures. 97

4.1.4  Fisheries. 102

4.2  Mining and energy. 105

4.2.1  Mining. 108

4.2.2  Hydrocarbons. 109

4.2.3  Electricity. 112

4.3  Manufacturing. 114

4.4  Services. 116

4.4.1  Financial services. 116

4.4.1.1  Regulations and general characteristics. 116

4.4.1.2  Banks. 120

4.4.1.3  Insurance. 122

4.4.2  Telecommunications. 123

4.4.3  Transport 126

4.4.3.1  Maritime transport 127

4.4.3.2  Air transport 130

4.4.4  Tourism.. 132

5  APPENDIX - TABLES. 137

CHARTS

Chart 1.1 Composition and growth of GDP by sector, 2018‑24. 15

Chart 1.2 Composition and growth of GDP, capital formation growth and household consumption growth, 2018‑24. 16

Chart 1.3 Inflation and monetary policy rate (MPR), 2018‑24. 19

Chart 1.4 Current and financial accounts, 2018‑24 (% of GDP) 20

Chart 1.5 International trade of Colombia, 2018‑24. 23

Chart 1.6 Merchandise exports by HS section, 2018‑23. 24

Chart 1.7 Exports by region and by major trading partners, 2018‑23. 25

Chart 1.8 Merchandise imports by HS section, 2018‑23. 26

Chart 1.9 Imports by region and by major trading partners, 2018‑23. 26

Chart 2.1 Regional trade agreements in force in Colombia, 2024. 34

Chart 3.1 Frequency distribution of tariffs, 2017 and 2024. 43

Chart 3.2 Comparison between international prices and CAN reference prices for three products subject to the SAFP. 45

Chart 3.3 Procedures for AD and SCM investigations. 58

Chart 3.4 Industrial property indicators, 2018-24. 89

Chart 4.1 Changes in SGR distribution and beneficiaries. 107

Chart 4.2 Breakdown of the retail price of fuels. 111

Chart 4.3 Functioning of Colombia's financial system.. 117

Chart 4.4 Port traffic, 2018-24. 130

TABLES

Table 1.1 Basic economic indicators, 2018‑24. 11

Table 1.2 Central government finances, 2018‑24. 17

Table 1.3 Balance of payments, 2018‑24. 21

Table 1.4 Trade in goods and services, 2018‑24. 22

Table 1.5 Trade in services, 2018‑24. 27

Table 1.6 FDI flows, 2018‑24. 28

Table 2.1 Reforms to the Political Constitution (non-exhaustive list) 29

Table 2.2 Main programmes to strengthen women's participation in international trade. 32

Table 2.3 Main amendments negotiated for regional trade agreements (RTA), 2018-24. 35

Table 2.4 Investment restrictions, 2024. 35

Table 2.5 Incentive regimes, 2024. 37

Table 3.1 Processing channels (imports), 2018-24. 41

Table 3.2 Preferential origin criteria in the Colombia-Israel RTA, 2024. 42

Table 3.3 Structure of the MFN tariff, 2017 and 2024. 42

Table 3.4 Lines with MFN tariffs in excess of bound tariffs, 2024. 44

Table 3.5 Summary analysis of preferential tariffs, including the Andean Price Band System (SAFP), 2024. 47

Table 3.6 Goods and services subject to the national consumption tax (INC), 2018-24. 52

Table 3.7 Carbon tax rate, 2017-25. 53

Table 3.8 Tax on petrol and engine fuel oils, 2017-24. 53

Table 3.9 Times for anti-dumping and countervailing measure procedures, 2018-24. 57

Table 3.10 Anti-dumping measures, 2018 - September 2024. 59

Table 3.11 Safeguards: main features. 61

Table 3.12 Safeguard investigations 2018-24. 62

Table 3.13 Processing channels (exports), 2018-24. 63

Table 3.14 Benefits for free zone users (all zone types) 70

Table 3.15 Investment and employment requirements for industrial and commercial users of permanent free zones. 71

Table 3.16 Support programmes, 2018-24. 71

Table 3.17 Institutions that form part of SICAL, 2025. 73

Table 3.18 SICAL-related legislation, 2018-24. 73

Table 3.19 Imports through SISPAP, 2018-24. 77

Table 3.20 Economic sanctions regarding economic competition, 2018-24. 80

Table 3.21 Government procurement statistics, 2018-24. 85

Table 3.22 Procurement thresholds, 2018-24. 87

Table 3.23 Border measure indicators, 2018-24. 93

Table 4.1 Main indicators for the agricultural sector, 2018-24. 94

Table 4.2 Contributions to agricultural funds, 2025. 99

Table 4.3 Financial support programmes for the agricultural sector, 2025. 101

Table 4.4 Credits granted for agricultural promotion, 2018-24. 102

Table 4.5 Special credit lines (LECs) and rural capitalization incentives (ICRs), 2018-24. 102

Table 4.6 Main indicators for the fisheries subsector, 2018-24. 103

Table 4.7 Methods for awarding E&P contracts in 2024. 110

Table 4.8 Main indicators for the manufacturing sector, 2018-24. 114

Table 4.9 Minimum capital requirement by type of institution, 2018-24. 118

Table 4.10 Main regulatory changes included in Single Decree No. 2555
(non-exhaustive list) 119

Table 4.11 Interest rates and monthly disbursements from the Credit Pact, September‑December 2024. 119

Table 4.12 Credit portfolio and default and solvency indicators, 2018-24. 120

Table 4.13 Insurance sector indicators, 2018–24. 123

Table 4.14 Connectivity indicators, 2018-24(Q3) 125

Table 4.15 E-commerce indicators, 2018-24. 125

Table 4.16 International air transport data, 2018-24. 132

Table 4.17 Tourism indicators, 2018-24. 133

Table 4.18 Tourism incentives, 2016-24. 134

BOXES

Box 3.1 Main amendments to customs legislation, 2018-24. 39

Box 3.2 Import regimes, 2024. 49

Box 3.3 Imports exempt from customs duties. 50

Box 3.4 Reasons for requiring automatic licences (or import registration), 2025. 55

Box 3.5 Imports subject to non-automatic licensing (prior licensing), 2025: 56

Box 4.1 Incentives for the mining and energy sector 106

APPENDIX - TABLES

Table A1.1 Exports by HS section and main HS chapter, 2018-23. 137

Table A1.2 Merchandise exports by trading partner, 2018-23. 139

Table A1.3 Merchandise imports by trading partner, 2018-23. 140

Table A2.1 Notifications to the WTO, 2017-24. 141

Table A3.1 Summary analysis of the MFN tariff, 2024^a 144

Table A3.2 Products subject to the Andean Price Band System (SAFP) (2018-24) 145

APPENDIX – CHARTS

Chart A5.1 Andean Price Band System (SAFP): Quantities imported and tariffs, 2018-24. 147