Sweden wants to diversify Colombian exports to his country

Colombia and Sweden have a commercial relationship of more than 120 years, since April 1896, when the first 50 Ericsson telephone sets arrived in the country from Stockholm, destined for the Bogotá Telephone Company. And over the years, trade between the two countries has continued to strengthen.

(They discover a large deposit of rare earths in Sweden).

Håkan Jevrell, Deputy Minister of Foreign Trade of Sweden, was visiting Colombia in order to strengthen the binational relationship, and spoke with Portafolio about the perspectives of both countries.

Colombia has a free trade agreement with the European Union since 2013, how relevant is trade with Sweden?

The free trade agreement plays a very important role, in an era of geopolitical turbulence and in which some countries may feel the need to increase their barriers to protect their industries.

This agreement is the first step to increase collaboration between the European Union and Colombia. I am pleased to see that Sweden has a strong presence in Colombia, but there is also the intention to increase trade and see greater diversification in the products we trade.

What are the main goods and services that are exchanged?

It is necessary to highlight a long relationship that goes from Ericsson, which has been present in the country since 1896, on the subject of telecommunications. We are also very strong in the transport sector, with buses and trucks from Volvo and Scania, and we have other Swedish companies such as H&M, ABB, Epiroc or Securitas. And one of the communications operators, Millicom (Tigo), is also Swedish.

(Sweden, the country that uses 24 hours of summer sun for its economy).

The panorama is wide. Ikea will open its doors this year in Colombia, but many of these companies not only export directly from Sweden but also supply from other parts of the world.

How much is trade between the two countries quantified?

In 2021 Sweden exported to Colombia approximately 120 million euros and imported around 44 million euros in the same year. Between January to September 2022, these figures increased. In the case of direct exports to Colombia, for this period they increased by 53%; and direct imports from Colombia to Sweden grew 141%.

A very important issue is that the magnitude of trade relations between the two countries is not necessarily reflected in these statistics. Many Swedish companies have their production plants in Brazil and from there they also export to Colombia.

In addition, Colombia exports to Sweden through the European Union, through the main ports such as Rotterdam or Hamburg. The main products that Sweden imports from Colombia are flowers, coffee, cocoa and fruits. But we have a joint goal, we want to diversify Colombia’s exports to Sweden.

(Swedish culture: the values ​​that are part of the DNA of Sweden).

If we talk about investments, for example, we have a Swedish company that invested US$160 million in 2022 alone, to build solar energy parks. Likewise, two years ago we had the largest injection of Swedish capital ever made in Colombia, US$1.5 billion, in the hygiene and health sector.

What sectors have the most potential in Colombia?

All nations should look to their strengths. If you know that you are good in an area, you must improve and the competitiveness around it will grow. You have to look at how to add value to products and their value chains, as in the case of coffee. It would be wonderful to see an expansion of Juan Valdez, for example.

From Sweden we are excited to be part of that process. Contribute with innovation, our knowledge in sustainability and we see a high potential in Colombia.

The private sector plays an important role in the development of Sweden, how many Swedish companies are in Colombia?

There are around 90 companies and brands in Colombia, and we would like to see a bigger presence. Looking to the future, we see that companies like Ericsson and Millicom will play an important role in the development of the Colombian economy in the face of digitalization, and when we talk about sustainability, sustainable mining, we have Epiroc, a company with vast experience in Sweden. .

We know the impact of mining, but if it is done in the right way, we can indeed achieve good results for the communities, the country and the companies.

Sweden is a leader in sustainability, how do you see the agenda of the Government of Gustavo Petro towards a greener economy?

The main issue is how to save the planet from climate change and I think that any political decision moving in that direction is always welcome for Sweden. It is a process that clearly must be discussed, Colombia has a strong democracy, so all voices must be heard, but in general terms, it is something important. Climate change is something that all political leaders must face.

LAURA LUCIA BECERRA ELEJALDE