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Viewing cable 08BOGOTA4234, COLOMBIA SIGNS FTA WITH EFTA

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Reference ID Created Released Classification Origin
08BOGOTA4234 2008-11-25 19:48 2011-08-25 00:00 UNCLASSIFIED Embassy Bogota
VZCZCXYZ0000
RR RUEHWEB

DE RUEHBO #4234 3301948
ZNR UUUUU ZZH
R 251948Z NOV 08
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 5743
INFO RUEHSW/AMEMBASSY BERN 1511
RUEHBR/AMEMBASSY BRASILIA 8525
RUEHCV/AMEMBASSY CARACAS 1358
RUEHLP/AMEMBASSY LA PAZ NOV LIMA 6774
RUEHME/AMEMBASSY MEXICO 9526
RUEHNY/AMEMBASSY OSLO 0394
RUEHOT/AMEMBASSY OTTAWA 2563
RUEHZP/AMEMBASSY PANAMA 2713
RUEHQT/AMEMBASSY QUITO 7467
RUEHRK/AMEMBASSY REYKJAVIK 0002
RUEHSG/AMEMBASSY SANTIAGO 2447
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS BOGOTA 004234 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL CO
SUBJECT: COLOMBIA SIGNS FTA WITH EFTA 
 
REF: BOGOTA 4178 
 
1. (U) SUMMARY  On November 25, Colombia signed a Free Trade 
Agreement with the four member countries of the European Free 
Trade Association (EFTA) -- Switzerland, Norway, Iceland, and 
Liechtenstein.  With total trade between EFTA countries and 
Colombia at just over one billion dollars, the agreement's 
strategic significance outweighs its commercial value. 
Nonetheless, Colombia sees the agreement as a tool to further 
strengthen ties with Europe and deepen trade relationships 
with willing partners.  Coming just days after having inked a 
similar deal with Canada, Colombia is hopeful that its 
aggressive push forward on trade will draw attention to the 
stalled U.S.-Colombia Trade Promotion Agreement.  END SUMMARY 
 
TRADE WITH EFTA: SMALL, BUT GROWING 
----------------------------------- 
 
2. (U) Colombian Trade Minister Luis Guillermo Plata, along 
with his four EFTA counterparts signed the agreement in 
Geneva.  Plata told the press the agreement, "strengthens 
Colombia's strategy to deepen relationships with Europe." 
EFTA's exports to Colombia, which totaled 360 million dollars 
in 2007, include pharmaceuticals, chemicals and machinery. 
Colombia exported some 860 million dollars to EFTA countries 
in 2007, including precious stones and metals, coffee and 
fruit. 
 
SWIFT AGREEMENT WITH BENEFITS FOR ALL 
------------------------------------- 
 
3. (U) After beginning negotiations in June, 2007, the two 
sides concluded the fifth and final round on June 12, 2008. 
Colombian industrial goods will enter EFTA countries 
tariff-free, while Colombian processed agricultural exports 
to EFTA countries will receive the same treatment as those 
from the EU.  Switzerland, which is responsible for the 
lion's share of EFTA's trade with Colombia, gained 
concessions on certain agricultural products, including wine, 
dried meats, and cheese.  The agreement also contains 
investment provisions, particularly important to Switzerland, 
whose companies, such as Nestle and Glencore, have large 
investments in Colombia. 
 
COLOMBIA MOVING FORWARD, U.S. STANDING STILL? 
--------------------------------------------- 
 
4. (U) Colombia becomes the first Andean country to sign an 
FTA with EFTA, and the fourth country in the Western 
Hemisphere -- along with Canada, Mexico, and Chile -- to do 
so.  Coming on the heels of the FTA-signing with Canada, 
Colombia's agreement with EFTA, while small in terms of 
current trade volumes, underscores the seriousness Colombia 
attaches to diversifying its trade partners and opening its 
economy.  Given that the U.S. is Colombia's largest trading 
partner, news of other trade agreements only serves to focus 
attention in the media and the business community on the fact 
that the U.S.-Colombia Trade Promotion Agreement remains in 
limbo. 
BROWNFIELD