What does this mean for Canadian Businesses?

What does this mean for Canadian Businesses?

The free trade agreement will provide greater market access for Canadian exporters of products such as wheat, pulses, barley, paper products, and heavy equipment.  In addition, the agreement will provide greater stability and protection for Canadian businesses involved in oil and gas, mining, manufacturing, and financial services.  

 

Prior to the agreement, Canadian exporters applied tariffs on agricultural products averaged at 16.6% with industrial goods averaging at 11.8%. The abolition of these tariffs will help enhance the competitive position of Canadian exporters in the Colombian markets, and create opportunities for Canadian exporters.

 

Canadian businesses importing products such as coffee, bananas, coal, oil, sugar and flowers from Colombia will also benefit from the removal of the applied tariffs from Canada.  This will help lower the costs of logistics and operations and is expected to increase the number of imports from Colombia. 

 

Other benefits include the promotion of regulatory practices, including transparency and the use of international standards or their relevant parts, and the streamlining of conformity-assessment procedures; areas which have been lacking prior to the agreement. The benefits of this transparency include facilitated border access, for temporary entry, for a broad range of service providers, technicians, contractors and independent professionals.

 

Canadian companies have also demonstrated an increasing interest in investing in Colombia. Colombia is an important destination for Canadian Direct Investment Abroad (CDIA). Canadian investors are set to benefit from the agreement, through having a more secure environment in which to invest.  Investment stock in Colombia is projected to grow rapidly over the next two years, largely driven by interest in Colombia’s oil and gas and mining sectors.