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EMBASSY OF INDIA

BOGOTA COMMERCIAL REPORT FOR COLOMBIA & ECUADOR FOR OCTOBER – DECEMBER 2015

COLOMBIA

1. Trends in bilateral trade

(I) Bilateral trade in US$ million

Exports Imports Total Growth % of export Growth % of import

Country's trade with India 428.71 1,000.17 1.428.88 -82.42% -8.21%

Country's total global trade 37,391.02 43,573.75 80.964.77 -29.43% -14.20%

Figures January – October 2015. Source: Customs Agency of Colombia.

(II) Top ten items of export to India

S.No. Commodity Value US $

mn

Share in total

export %

Percentage

Growth %

1 Mineral Fuels, Mineral Oils 355.50 82.92% -84.89%

2 Natural or Cultivated Pearls 38.33 8.94% 13.00%

3 Plastics and Articles Thereof 14.86 3.47% 12.27%

4 Wood and articles of wood 10.49 2.45% -9.40%

5 Electrical Machinery and Equipment 1.63 0.38% 4783.81%

6 Sugars 1.21 0.28% 101.86%

7 Iron & Steel 0.97 0.23% -94.87%

8 Aluminium and Articles thereof 0.84 0.20% -27.42%

9 Other Base Metals 0.71 0.17% -16.09%

10 Cocoa and Cocoa Preparations 0.47 0.11% -8.68%

Figures January – October 2015. Source: Customs Agency of Colombia.

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(III) Top 10 items of export to the world

S.No. Commodity Value US $ mn

Share in total export %

Percentage Growth %

1 Mineral Fuels, Mineral Oils 16,581.65 44.35% -47.47%

2 Aircraft, Spacecraft and Parts 4,109.79 10.99% 1.13%

3 Coffee, tea, mate 2,176.66 5.82% 8.02%

4 Machinery and Mech. Appliances 1,407.48 3.76% 26.00%

5 Plastics and Articles Thereof 1,194.95 3.20% -12.38%

6 Live Trees and other plants 1,121.54 3.00% -6.54%

7 Natural or Cultivated Pearls 1.,96.33 2.93% -27.53%

8 Ships, boats and floating structures 900.00 2.41% 127.08%

9 Edible fruits and nuts 767.49 2.05% -3.71%

10 Sugars 513.91 1.37% -24.10%

Figures January – October 2015. Source: Customs Agency of Colombia.

(IV) Top 10 imports from India

S.No. Commodity Value US $ mn

Share in total import %

Percentage Growth %

1 Motorcycles in CKD form 228.13 22.81% -16.48%

2 Vehicles other than railways 136.36 13.63% 22.98%

3 Organic Chemicals 93.04 9.30% -2.33%

4 Cotton yarn and woven fabrics of cotton 81.07 8.11% -29.18%

5 Aluminium and Articles thereof 53.58 5.36% 60.80%

6 Pharmaceutical Products 49.35 4.93% -2.91%

7 Electrical Machinery and Equipment 42.58 4.26% -18.14%

8 Machinery and Mech. Appliances 38.44 3.84% 17.78%

9 Plastics and Articles Thereof 30.98 3.10% -3.87%

10 Iron & Steel 29.98 3.00% -54.52%

Figures January – October 2015. Source: Customs Agency of Colombia.

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(V) Top 10 imports from the world

S.No. Commodity Value US $ mn

Share in total import %

Percentage Growth %

1 Machinery and Mech. Appliances 5.673.30 13.02% -12.63%

2 Electrical Machinery and Equipment 4.521.09 10.38% -14.52%

3 Mineral Fuels, Mineral Oils 3.997.08 9.17% -36.22%

4 Vehicles other than railways 3.367.91 7.73% -27.01%

5 Aircraft, Spacecraft and Parts 2.245.97 5.15% 16.11%

6 Pharmaceutical Products 1.934.55 4.44% -1.28%

7 Plastics and Articles Thereof 1.910.81 4.39% -10.23%

8 Organic Chemicals 1.690.19 3.88% -20.59%

9 Iron & Steel 1.365.65 3.13% -17.12%

10 Optical, Medical or Surgical Inst 1.311.32 3.01% -12.19%

Figures January – October 2015. Source: Customs Agency of Colombia.

(VI) Top 5 competitors of India’s top exports

S. No. Commodity Competitor Value US $ million

1 Motorcycles in CKD form China 100.2

2 Vehicles other than railways Mexico 469.23

3 Organic Chemicals USA 392.05

4 Cotton yarn and woven fabrics of cotton China 65.45

5 Aluminium and Articles thereof China 44.81

Figures January – October 2015. Source: Customs Agency of Colombia.

(VII) Significant trends

S.No. Details of significant trends Analysis

1 India – Colombia commercial relations

Colombian exports to India have plummeted in the first 10 months of

2015 (-82.42%), going from US $ 2.4 bn in 2014 to only US $ 355 mn. in

2015. Although the fall of international oil prices has affected

Colombian sales of crude to India, quantity of exported barrels also

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decreased.

Colombian imports from India also decreased but only by 8.2%. The

main falls of Indian sales to Colombia from January to October 2015

were seen in motorcycles in CKD form by 16% (probably due to the

start of operations of ne new Hero manufacturing plant in Colombia),

cotton yarn by 29%, electrical machinery by 18% and iron & steel by

54%. This may be explained by the strong devaluation of Colombian

peso against US $ dollar, about 50% in 2015. However, Colombian

imports of Indian items such as aluminium and articles thereof grew

by 61% during the same period.

2 Colombia’s Ecopetrol profit falls on

oil price drop

Colombia’s state-controlled oil producer Ecopetrol reported a

62.2% drop in quarterly profits due to the global plunge in oil prices

and costs incurred because of rebel attacks. The company posted a

third quarter net profit of COP 654.1 billion (US$212.8 million),

compared with 1.73 trillion pesos in the year-ago period. Earnings

before interest, taxes, depreciation and amortization fell 25.9% to

COP4.69 trillion in the third quarter. Ecopetrol is the largest producer

in Colombia’s nearly million barrel-per-day oil sector, followed by

Toronto-listed Pacific Exploration and Production Corp, the biggest

private player.

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Peace with FARC would boost

Colombia’s GDP growth and triple

foreign investment

A peace deal with FARC rebels could triple foreign direct investment in

Colombia and boost its potential economic growth from 4% to 5.9%,

according to the government’s planning department DNP. According

to a study conducted by the DNP, successful peace talks would not just

result in a major FDI hike, but also boost consumer confidence and

domestic consumption.

While increased consumer confidence would increase domestic

consumption, foreign investment would improve the country’s

industries to become more competitive on the global market,

according to the study. Annual foreign direct investment could

increase to $36 billion from $12 billion currently, the report said.

However, the Colombian economy has been hit over the last year by a

decline in oil revenue as global prices slump.

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Colombia fears blackouts amid ‘El

Niño’-driven energy crisis

The Colombian government has put drastic measures in place to

prevent potential energy blackouts caused by the affects of the pacific

weather phenomenon, “El Niño,” and declining access to oil. Colombia

has been suffering the worst drought on the country’s records due to

El Niño with reservoir levels declining. Many provinces and cities have

had water restrictions imposed in order to ration the supply. The

situation is set to continue getting worse until March 2016.

According to the Minister for Mines and Energy, Tomas Gonzalez,

other contributing factors to the energy crisis are the decline of the

gas fields on the Caribbean coast, the closure of the border with

Venezuela and falling oil prices which affect the income of the plants

that generate power in times of crisis.

In order to save power and prevent blackouts, especially around

Christmas and the New Year, the presidential palace and other

national government buildings in Bogota remained without Christmas

lights in December 2015. Also, the government increased energy

prices.

2. Important India related statements of commercial significance by political leaders, think

tanks, Chambers, associations etc.

A seminar on the India – Colombia commercial relations was organized by the Centre of

Studies on Contemporary India of the Externado University, on 24 November 2015. 20 top

Colombian CEOs attended the event, in which Ambassador Shri Prabhat Kumar addressed

the audience on the untapped potential of doing business between India and Colombia.

3. Market access

a) Alerts on SPS/TBT notifications, import procedures, export restrictions, out in place;

change in trade policy.

NIL

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b) Alerts on trade defense measures taken by Colombia: (Special safeguard,

antidumping, CVD or anti-subsidy).

The Colombian Government has put anti-dumping measures on Indian high pressure

laminates classified under the HS code 3921.90.10.00

c) Feedback from major Indian industries / other commercial concerns / set up and

Indian trade visitors to Colombia.

S.No. Name of Business house

Activity sector

Trade barriers issues if any

General Feedback

1 NIL NIL NIL NIL

d) Feedback on major trade fairs / BSM including Indian participation (whether or not

supported by MAI funds).

NIL

S.No. Particulars of event No. of participants from India

List of large participants

Feedback received

1 Chemexcil Exhibition in Bogota

48 150

Delegates were extremely happy with the Colombian business contacts made during the event that took place on 1-2 December 2015.

2 EPCH delegation to Bogota

13 1000

EPCH delegation participated in Colombia’s most important trade fair, Expoartesanías, from 4 to 17 November 2015.

e) Feedback from local commercial visitors to trade fairs in India, including under BSM.

No. Of business visas issues

S.No. Particulars of event No. Colombian participants

List of large participants

1 NIL NIL NIL

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Number of business visas issued for Colombian nationals: 168

4. Investment

a) Opportunities for investment /assets on offer / major company divestment.

S.No.

Particulars of the asset / company Sector of investment

Quantum of investment

1 Invitation to present remarks and presentation of a proposal to hire works

for the runway maintenance of the Yorondó road

More information:

https://www.contratos.gov.co/consultas/detalleProceso.do?numConstancia=

16-1-147406 Construction US $ 3.10 million

2 Invitation to present remarks and presentation of a proposal for the

consultancy to update the Jose Maria Córdoba airport’s master plan, located

in the municipality of Rionegro and the technical, operational, financial and

land feasibility studies of the budget for a second airport runway.

More information:

https://www.contratos.gov.co/consultas/detalleProceso.do?numConstncia=1

5-16-4198424 Aviation US $ 1.02 million

b) Information on tender notices of interest to Indian project exporters (USD 15 million

& above).

NIL

c) Information regarding major investments in India from Colombia.

S.No. Particulars of the asset / company Sector of investment

Quantum of investment

1 NIL NIL NIL

5. Details of activities conducted out of Trade promotion Budget (Common for Colombia &

Ecuador).

Sl.No. Head of Accounts

Approved

BE 2015-16

Actual Expenditure

upto December

2015

Expected expenditure

from January 2016 to

March 2016

Total expected

expenditure till 31st

March 2016 (Col.4+5)

Justification in a few words

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1 Salaries 1.816.00

0

1.076.333 400.000 1.476.333 It is expected that there will be a

balance budget of Rs.3,39,667/-

under the Head "Salaries" as

informed earlier vide our Message

No.BOG/731/02/2007-II dated

January 6, 2016.

2 Trade Promotion

840.000 59.073 780.927 840.000 As infomred earlier vide our email

dated January 6, 2016, we will incur

expenditure on the following:

(i) Market survey on agricultural

products & potential for commercial

activities, film industry & the

viability of shooting films in

colombia, potential in chemcial

sector. (ii) Publication of a

booklet on business between

Colombia and India.

(iii) Project on dissemination of

information related to trade policies,

economic reforms etc. undertaken by

the India Colombia Chamber of

Commerce.

Grand Total

2.656.000

1.135.406 1.180.927 2.316.333

Action taken on the previous JWGs, Joint Commissions, sub-commissions etc. (issues that the

Mission had to follow up with host government)

S.No. Detail of JWG/JEC Action point Action taken

1 NIL NIL NIL

6. Trade queries for imports / exports

124 enquiries from India and Colombia were received.

7. Any other issue of importance

NIL

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ECUADOR

1. Trends in bilateral trade

(I) Bilateral trade in US$ million

Exports Imports Total Growth % of export Growth % of import

Country's trade with India 125.56 450.26 575.82 -62.50% 90.14%

Country's total global trade 14,766.28 16,595.28 31,361.56 -29.68% -17.02%

Figures from January to November 2015. Source: Central Bank of Ecuador.

(II) Top ten items of export to India

S.No. Commodity Value US $ mn

Share in total export %

Percentage Growth %

1 Mineral Fuels, mineral oils 49.00 39.02% -82.95%

2 Natural or Cultivated Pearls 42.15 33.57% NA

3 Wood and Articles of Wood 24.10 19.20% -32.22%

4 Cocoa and Cocoa Preparations 9.63 7.67% 15.23%

5 Pharmaceutical Products 0.85 0.68% 349.26%

6 Aluminium and Articles thereof 0.55 0.43% -45.21%

7 Machinery and Mech. Appliances 0.37 0.29% -62.29%

8 Iron & Steel 0.33 0.26% NA

9 Optical, Medical or Surgical Inst 0.15 0.12% 3058.14%

10 Inorganic Chemicals 0.07 0.06% NA

Figures from January to November 2015. Source: Central Bank of Ecuador.

.

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(III) Top 10 items of export to the world

S.No. Commodity Value US $ mn

Share in total export %

Percentage Growth %

1 Mineral Fuels, mineral oils 4,661.13 31.57% -23.08%

2 Live Trees and other plants 2,347.43 15.90% -23.08%

3 Fish and Crustaceans 2,296.26 15.55% -23.08%

4 Edible fruits and nuts 1,98.29 13.53% -23.08%

5 Preparations of Meats 645.55 4.37% -23.08%

6 Natural or Cultivated Pearls 616.66 4.18% -23.08%

7 Cocoa and Cocoa Preparations 449.87 3.05% -23.08%

8 Aircraft, Spacecraft and Parts 391.02 2.65% -23.08%

9 Machinery and Mech. Appliances 227.69 1.54% -23.08%

10 Animals or Vegetable Fats 214.11 1.45% -23.08%

Figures from January to November 2015. Source: Central Bank of Ecuador.

(IV) Top 10 imports from India

S.No. Commodity Value US $ mn

Share in total import %

Percentage Growth %

1 Mineral Fuels, mineral oils 218.58 48.55% 542.88%

2 Iron & Steel 24.01 5.33% -31.40%

3 Pharmaceutical Products 17.3 3.84% 23.57%

4 Vehicles other than railways 13.44 2.98% -10.40%

5 Organic Chemicals 10.23 2.27% -31.80%

6 Plastics and Articles Thereof 7.89 1.75% -21.10%

7 Aluminum and articles thereof 6.87 1.53% 71.75%

8 Machinery and Mech. Appliances 6.4 1.42% 82.86%

9 Rubber and Articles thereof 4.88 1.08% 62.67%

10 Optical, Medical or Surgical Inst 3.88 0.86% 29.33%

Figures from January to November 2015. Source: Central Bank of Ecuador.

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(V) Top 10 imports from the world

S.No. Commodity Value US $ mn

Share in total import %

Percentage Growth %

1 Mineral Fuels, Mineral Oils 3,299.41 19.88% -34.01%

2 Electrical Machinery and Equipment 1,711.69 10.31% -14.42%

3 Machinery and Mech. Appliances 1,422.88 8.57% 42.29%

4 Vehicles other than railways 1,330.45 8.02% -46.78%

5 Pharmaceutical Products 803.82 4.84% 33.97%

6 Plastics and Articles Thereof 774.85 4.67% 3.31%

7 Iron & Steel 518.58 3.12% -20.22%

8 Residues and waste from food 453.08 2.73% -9.38%

9 Optical, Medical or Surgical Inst 406.21 2.45% -18.76%

10 Paper and Paperboard 268.15 1.62% -23.39%

Figures from January to November 2015. Source: Central Bank of Ecuador.

(VI) Top 5 competitors of India’s top exports

S. No. Commodity Competitor Value US $ million

1 Mineral Fuels, mineral oils USA 1526.36

2 Iron & Steel China 320.69

3 Pharmaceutical Products Colombia 152.88

4 Vehicles other than railways South Korea 321.78

5 Organic Chemicals China 62.49

Figures from January to November 2015. Source: Central Bank of Ecuador.

(VII) Significant trends

S.No. Details of significant trends Analysis

1 Banks see their income fall after 3 years

Neither the reduction imposed to rates charged by loans or

the cutting of tariffs for the provided services had been

unavoidable. For the first time in 2015, compared to the

past three years, banks accumulated less revenues than

those of the previous year. Their earnings last year totaled

$ 271 million: a dip of 19% compared to their balance

sheets of 2014 (334 million dollars). This decrease has been

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due to fall in the deposits. Banks have fewer resources to

grant loans, something that contracted its brokerage

business.

2

Guayaquil, with 67% of stock market

Guayaquil stock exchange market captured 66.8% of the

domestic stock market trade share. The Quito Stock

Exchange (BVQ), meanwhile, produced the remaining

33.2%.

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Foreign Reserves at their lowest point

To December 31, the Ecuadorian international reserves

amounted to USD 2,496 million, the lowest since 2012

compared to the same month in previous years.

2. Important India related statements of commercial significance by political leaders, think

tanks, Chambers, associations etc.

NIL

3. Market access

a) Alerts on SPS/TBT notifications, import procedures, export restrictions, out in place;

change in trade policy.

NONE

b) Alerts on trade defense measures taken by Ecuador: (Special safeguard,

antidumping, CVD or anti-subsidy).

NONE

c) Feedback from major Indian industries / other commercial concerns / set up and

Indian trade visitors to Ecuador.

S.No. Name of Business house Activity sector

Trade barriers issues if any

General Feedback

1. NIL NIL NIL NIL

d) Feedback on major trade fairs / BSM including Indian participation (whether or not

supported by MAI funds).

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S.No. Particulars of event No. of participants from India

List of large participants

Feedback received

1 Plexconcil delegation to Gauayquil

11 120 Indian participants expressed satisfaction with their participation on the event.

e) Feedback from local commercial visitors to trade fairs in India, including under BSM.

No. Of business visas issues

S.No. Particulars of event No. Ecuadorian participants

List of large participants

1 Launching of Make in India in Guayaquil 28 30

Number of business visas issued to Ecuadorian nationals:15

4. Investment

a) Opportunities for investment /assets on offer / major company divestment.

S.No. Particulars of the asset / company Sector of investment

Quantum of investment

NIL NIL NIL

b) Information on tender notices of interest to Indian project exporters (USD 15 million

& above).

NIL

c) Information regarding major investments in India from Ecuador.

S.No. Particulars of the asset / company Sector of investment

Quantum of investment

1 NIL NIL NIL

5. Details of activities conducted out of Trade promotion Budget (Common for Colombia &

Ecuador).

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As mentioned under point 5 for Colombia.

6. Action taken on the previous JWGs, Joint Commissions, sub-commissions etc. (issues that

the Mission had to follow up with host government)

S.No. Detail of JWG/JEC Action point Action taken

NIL NIL NIL

7. Trade queries for imports / exports

14 enquiries from India and Ecuador were received.

8. Any other issue of importance

NIL