Less than a week after the arrival of Donald Trump to the White Housewhich was outlined as a relatively quiet commercial relationship with Colombia, according to experts in the field, given the commercial surplus of US $ 2 billion that has the United States with our country, He climbed a few hours this Sunday to a diplomatic shock that quickly went from visa suspension to visas withdrawal to Colombian officials and then to drastic commercial measures.
(You may be interested: ‘Our commercial policy cannot be based on scares’: Minister of Commerce)
A crisis that lasted all day, until late on Sunday night, when the parties announced an agreement after a whole day of strong tension that moved all public opinion.
The scaling of advertisements in social networks It originated in a trill with which President Petro ‘early’ to publish Towards 3 in the morning, unauthorizing the entry of US planes with Colombian citizens deported by that country.
After the unforeseen announcement, the Trump government suspended the visas procedures, announced the withdrawal of the visas to officials and ordered four emergency tariff measures against Colombia.
The first were 25% tariffs on all goods that enter the United States from Colombia, which rose in a week to 50%; followed by visa sanctions for all party members (Historical Pact Coalition), relatives and supporters of the Colombian Government.
(You can also read: When would visas for the United States be issued again in Colombia?)
In commercial and economic matters, the American government had also determined reinforced inspections of customs and border protection of all Colombian nationals and shipments for national security reasons, while I was going to impose sanctions on the Treasury, Banking and Finance of Colombiainvoking the law ‘International Emergency Economic Powers Act (IEEPA)’.
Between January and February 2024, Colombia exported more than 59,000 tons of fresh cut flowers. 76% The value sold was to the US.
Jáiver Nieto Álvarez / Portafolio
In response, President Gustavo Petro announced to his turn that he ordered the Minister of Commerce, Luis Carlos Reyes, to impose a 25% tariff on the products from the United States, pointing out that “US products whose price will rise within the economy within the economy National, must be replaced by national production; The Government will help in this purpose. ”
However, late on Sunday night, the government reculled, revealed And he accepted the conditions of the United States, according to a statement from the White House, while the Foreign Minister, Luis Gilberto Murillo, said that Impasse (generated by Petro in networks), was overcome, confirming that undocumented Colombians will continue to be received are deported.
For its part, The White House stressed that the Colombia Government has accepted all the terms of President Trumpincluding the unrestricted acceptance of all illegal foreigners in Colombia returned from the United States, even in US military planes, without limitation or delay.
According to the agreement, the sanctions and planned rates are maintained and will not be signed unless Colombia does not comply, but it was determined that the sanctions of visas issued by the State Department and the improved customs inspections and border protection will remain in force until May the first flight with deportees come back.
It was a map to the trade of goods
The only announcement of the increase in tariffs unleashed a wave of concerns in the business sectors that have a robust market for their income, since according to the Colombian Association of Foreign Trade (Analdex), Between January and November of last year, 29% of Colombia’s exports went to the United States.
The situation hit the goods different from fuels, coal and oil (which are subject to special emphasis of the Government), since 32% of these products are sold in the United States, the main commercial partner of the country.
(We recommend: Trump orders immediate revocation of visas for national government officials)
The US Secretary of State, Marco Rubio, who questioned Petro because he had already authorized the arrival of the planes, said at the time that the measures would continue until Colombia fulfilled their obligations to accept the return of their own citizens . “The United States will not reverse when it comes to defending their national security interests,” he concluded.
The most immediate concern came from the side of the Floricultor sectorwhich every year has in Valentine’s Day (it is February 14) a strong important income, since Colombia is the second exporter of these products worldwide, and this traditional event represents 15% of the annual income of the sector .
The United States is the first commercial partner of Café de Colombia, with 40% of the country’s exports and more than US $ 1.1 billion a year.
SANTIAGO SALDARRIAGA / PORTAFOLIO
According to the DANE, in live plants and products from Floricultura Colombia exported to the United States between January and November US $ 1,728 million, being the second sector in sales to that country, after the oil and fuel sector. It is estimated that 80% of the flowers that occur in Valentine’s Day are destined for the US.
“The measures announced by President Trump are of great seriousness,” Javier Díaz Molina, president of Analdex, said during this Sunday.
Another key product with market in the United States, which would have been affected with the sanction measures, was coffee, whose directives remained this Sunday on alert due to the loss of competitiveness that meant a 25% or 50% tariff in that Market, in front of a current zero.
The president of the National Federation of Coffee Growers (FEDECAFÉ), Germán Bahamón, recalled that Café represents more 560,000 families and that USA. “It is the first commercial partner of Café de Colombia, with 40% of our country’s exports and more than US $ 1.1 billion.”
According to the Colombian Chamber of Commerce (Amcham Colombia), between January and November 59% of the products exported to the US. Based on Dane figures.
Another fact is also relevant is that About 70% of imports from the United States are goods that Colombia does not produce and that, for the most part, they are part of the local productive chains. “This country is the main supplier of goods to the nation,” the aggression stressed.
There were collateral effects for several Petro objectives
The diplomatic and commercial crisis that emerged this weekend between the United States and Colombia also generated an impact on the flow of foreign tourists who come to Colombia, front in which according to Amcham Colombia, Americans are the main foreign travelers visiting Colombia, since between January and November 2024, more than 1.07 million people arrived from that country, being 26% of non -resident foreigners who arrive, according to figures from the Ministry of Commerce, Industry and Tourism.
Likewise, another of the great key productive sectors for the government and could have been losing is fruit, where the banana is a great protagonist to have its main market in the US Edible, sour or melons, Colombian exports to the US added US $ 398.48 million between January and November 2024.
With the 25% tariff announced by Petro, when importing US gas.
Photo: Spec
From the Import Front one of the main blows to the pocket of Colombians by the Trump-Petro confrontation was liquefied gas (LNG) that reaches the country.
According to the Colombian Association of Generators (Andeg), the thermal plants guild, with the new tariff ordered by President Petro, Colombia would pay a price higher than US $ 20 per million BTU (British Caloric power unit) for importation of gas from the United States, increasing the cost of energy in the electricity market by 50%, and the end user rate would rise more than 18% to users, impacting the inflation of electricity, that has yielded significantly in the last 15 months.
In the country’s total, it is estimated that, per year, on average, more than 3,000 companies export to the US, which represents 35% of those that do it to the world, based on data from the Tax Directorate and National Customs (Dian), and the ones that do it most to that country are Ecopetrol, Tecnoglass, Petroleum Colombia Trafigura, the Cartagena and Sunshine Bouquet refinery, which immediately with the 25% or 50% tariff were left out of competition in front of other bidders.
In addition, the United States is the main remittance issuer for Colombia. In the third quarter they were registered at US $ 4,637 million, showing a growth of 17% compared to the flows that arrived in the same period of 2023, and representing 53% of the US $ 8,680 million that the country received, according to bank figures of the Republic.
Ómar G. Ahumada Rojas
Portfolio General Editor
