:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/47AUKAUROJCEBFJWJ6VNYCMIWM.jpg "The tension between the United States and China represented a turnover of 3,745 million dollars in Colombia in 2022 1")
Amid trade tensions between United States and China, the Colombian economy has expanded its presence in the North American market due to weaker Chinese supply. According to figures from United States Census Bureau, exports of Colombian products with a potential in the situation between the two countries amounted to 3,745 million dollars in 2022, representing a growth of 81.5% compared to the period pre-pandemic covid-19 in 2019, when USD 2,063 million was recorded.
“In 2022, the trade performance between Colombia and the United States responded to an exceptional behavior in terms of non-mining goods, energy and export diversification, driven by the tariff advantages envisaged by the two countries after the entry into force of the trade agreement in 2012,” said the president of the Colombian-American Chamber of Commerce (AmCham Colombia), María Claudia Lacouture.
Disaggregated by sectors, and in the particular analysis of opportunities in the United States-China tension, the agriculture held a 54.3% share of total business opportunity value, reflecting external sales of $2,032 million in 2022, a growth of 63.6% from $1,242 million in 2019. It is followed by precious metals and gemstoneswith a 40.8% share of the total exported value, corresponding to US$1,528 million in 2022, or 111.9% above the US$721 million reported for 2019.
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Between 2019 and 2022, Colombian products with opportunities that consolidated in the US market due to a Chinese slowdown were coffeewith revenue of $1,931 million (+62.5%); goldby consolidating shipments for $1,253 million (+134.6%) and precious or semi-precious stoneswith exports of USD 274.9 million (+46.9%), respectively.
In addition, other products stand out such as bras and girdles (79.4 million USD), various animal products (40.1 million USD), coat sets for sport (33.5 million USD), palm oil and its fractions (31.1 million USD) and the skin care beauty products ($27 million).
“The strengthening of exports in 2022 also indicates a process of taking advantage of the FTA (Free Trade Agreement) between Colombia and the United States, where 27 Colombian products presenting a commercial opportunity are in tension with the United States. United. – China has increased its presence in the American market compared to the Chinese market,” said Lacouture.
He also said that it is important to continue the actions of promotion and alliances and dynamics so that there are more companies that export non-mining and energy goods to the United States.
In 2022, the dynamism of Colombian economy managed to respond favorably in the US market despite ongoing supply chain disruptions, container shortages and geopolitical tensions between Russia and Ukraine. In this scenario, the reorganization of production lines, better known as relocation, continued to gain relevance in the region through legislative initiatives in the United States Congress.
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In view of the foregoing, the bill of Relocation in the Western Hemisphere, which aims to reduce the dependence of the American manufacturing industry on China. At the same time, it would seek to generate economic opportunities in Latin America as a means of stopping irregular immigration, as well as the fight against corruption and the defense of the rule of law in the region.
Likewise, the approval of the Inflation Reduction Act will set the tone for a new business card in the years to come, given the investments $370,000 million to revitalize the US supply chains. In this sense, increasingly strong tension is expected with the Asian economy in the years to come, in addition to the entry into force of the CHIPS and scientific lawwhich proposes to compete with China in the production of semiconductors with resources of 52.7 billion dollars.
The reconfiguration of supply in the US-China trade tension has also influenced greater competitiveness of Colombia compared to benchmarks in the region such as Mexico. From this perspective, exports of thirteen Colombian products increased from 2019 in response to a decline in Mexican supply to the United States, which materialized in opportunities valued at USD 1,327 million in 2022.
“In its sector breakdown, precious metals and stones concentrated 94.7% of the total value of the thirteen items with opportunity, equivalent to USD 1,253 million for the course of 2022. Thereafter, there is textile and chemical shipments, which had a 4.3% stake and recorded exports of $33.8 million and $21.4 million, respectively,” noted AmCham Colombia.
Throughout 2019 and 2022, Colombian products with a higher position in the United States compared to Mexico were gold, reaching sales of $1,253 million (+134.6%); sets of sportswear, with exports of 33.5 million dollars (+183.9%) and carboxylic acids, with a supply of 20.1 million dollars (+189.3%), mainly.
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From AmCham Colombia They reiterated a call for joint work between the national government and the private sector to better utilize trade opportunities related to the FTA between Colombia and the United States. At the same time, the current conditions of the relocation they increasingly give Colombia a competitive advantage in the production of goods and services, being an element to be strengthened in the transition to a more diversified export basket in the country.