After the United States government announced the rate of duty reciprocal that was going to apply to each of its commercial partners, Colombia, in their particular case, It was in the same situation in April this year.
(Read: Tariffs: That comes for the country with the ratification of the Trump 10% rate)
While the country maintains its 10%rate, which continues to make it competitive against other nations in the region that increased the tariff, according to experts It is time to advance in a negotiation with the American giant to lower or eliminate the tax.
One of the main foci in which Colombia should be working, so that the United States does not think about increasing the rate, according to experts, It is maintaining diplomacy with the main commercial partner and resolving commercial irritants in which Washington has insisted so much.
According to Javier Díaz, president of the National Foreign Trade Association (Analdex), Colombia was in a “beneficial” position in tariffs, If compared to countries in the region such as Ecuador, Brazil or Costa Rica. However, he warns of a disadvantage with Mexico, a nation to which Donald Trump decided to extend the levies for 90 days.
“We are the same as in April. However, he opens his way to start a negotiation that can lead us to reduce or eliminate that rate. We must solve commercial irritants and be able to be in a better position”Díaz said.
(Read more: Colombia maintains the 10% base tariff with the United States)
Cocoa, avocado, taizí lemon and Colombian fish face tariffs that affect their competitiveness.
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Now, an aspect that is important to highlight is that the tariff assigned by the United States is not definitive. Faced with this, the president of the Colombian Chamber of Commerce (Amcham Colombia), María Claudia Lacouture, stressed that Tariff changes can be applied to the country depending on the policies established by the American giant.
“The United States can establish that Colombia does not meet some requirements or that in the negotiation process there are no actions that today could help us divide tariffs. That is why we must prepare, working in the search for new customers in the United States and reinforce the relationship with current customers. The trust and traceability of the actions we are doing must be maintained”He said.
On the other hand, Lacouture gave a part of calm noting that with the 10%decision, at least 82.2% of the Colombian export basket has a limited impact and in addition, there are some exceptions in sectors such as gold and oil, which commercially benefits the country. Also, he said that in some products there is a competitive advantage since they were applied higher rates to competitive countries.
(See more: The day arrived: Donald Trump signs order for entry into force of global tariffs)
The agricultural sector is the most affected by tariff barriers in the US.
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Along the same lines, The Doree Kahn, director for the Andean Region of Risks control, told Portafolio that Colombia did not go out so badly freed, since there was no tariff increase, When it was being anticipated that the baseline rate was going to increase between 15 and 20%.
According to the manager, it is important that both the Government and the business understand that the scenario with the United States is a great uncertainty and high volatility. “Access to the US market can no longer be taken for granted as it could be done during the last years and decades, especially from the Free Trade Agreement”He said.
(See: The United States postponed increased tariffs to Mexico)
There are also opportunities in textiles, plastics, tools and construction materials.
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Diplomacy and negotiation are key to maintaining the bilateral relationship
Taking into account that the decision of tariffs to Colombia by the United States is not decisive, it is essential that the country maintain negotiations with Washington, while taking care of diplomacy to strengthen the bilateral relationship.
According to Theodore Kahn, there is a risk that high levies against the country are imposed if the relationship with the American giant is not taken care of. “The behavior or evolution of the bilateral relationship in the last 8 months has had an increase in tensions. The most recent are the statements related to the ruling against former President Uribe by Marco Rubio or diplomatic unbalance between rulers”, He explained.
(Read: What changes with Trump tariffs and what countries affect?)
Colombia still does not totally take advantage of the commercial agreement with the US.
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To this, he added that we must be monitoring the evolution of these very acute political tensions, especially between Marco Rubio and his Republican allies in Congress, Latinos and the Petro government officials. “If these tensions fail to shoot and if this attracts the attention of President Trump, high tariffs against Colombia could be on the table, regardless of the current decision”He warned.
To the conversation was joined by the president of Analdex, Javier Díaz, who said it is essential be fast and effective in negotiation For Colombia to position itself as a “great ally” of the United States.
“Diplomacy must be the road map, along with constant meetings with the commercial representative team, to show that Colombia has no surplus with them and that we are a key partner, in important products such as flowers, coffee, among others”He said.
(See also: They suspend tariff exception to low -cost commercial shipments globally)
Amcham Colombia asks the government to strengthen commercial and technical diplomacy.
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Colombia is urgent diplomatic strategy to compete with Mexico and Canada
From another point of view, the current structure of the Colombian export basket faces tariff barriers that limit their competitiveness against countries such as Mexico and Canada, María Claudia Lacouture warned. While there are opportunities in non -traditional sectors, the lack of comprehensive commercial strategy could leave the country at a disadvantage.
“There, agricultural products that have a limited impact enter, however cocoa, avocado, the taizi lemon, fish, have a tariff that is affecting, mainly because Mexico, a great competitor of Colombia in some of these products, has 0%”, He explained.
(Read more: USA will impose a 50% tariff to copper imports: When will it apply?)
Mexico and Canada already enjoy broad tariff benefits thanks to norms of origin.
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The union leader stressed that, in addition to agroindustrial products, there are clear opportunities in sectors such as Textiles and clothing, plastics, construction materials, tools and electrical systems.
Faced with this panorama, Lacouture called on the government to strengthen its role in international relations and foreign trade. “We need the work of the National Government, one based on commercial, technical diplomacy, which allows progress in a process that gives it the advantage that today have other countries such as Mexico and Canada“, held.
In his opinion, these nations have managed access a 0%tariff, a goal that Colombia is not yet reached.
(See: Trump imposes additional 50% tariffs on imported products from Brazil)
Diana K. Rodríguez T.
Portfolio journalist
