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The Emerging Emeralds in International Trade

Feb 28, 2023

A Conversation with Her Excellency Mrs. Patricia Cortés Ortiz, Colombia Ambassador to Ireland

The Colombia – Ireland relationship dates back to the 1800s from the time over 2,000 Irish volunteers accompanied Simon Bolivar in the campaign in which Colombia gained independence from Spain, including Cork man, General Daniel O’Leary who was aide-de-camp to Bolívar. Once the wars of Independence were over, a good portion of the volunteers remained in Colombia, some as part of the Colombian army, others to integrate into society as businessmen, merchants, artists and miners. Though academic sources differ, it is estimated that the Irish diaspora in Colombia is 10,000 people at present. There are around 700 Colombians that live and work in Ireland today.

It is without a doubt that the long history between the two countries has only strengthened in recent years with the opening of the Colombian Embassy in Dublin in 2018, the Irish Embassy opening in Bogotá in 2019, and alongside Global Ireland, Ireland’s strategy for Latin America and the Caribbean to 2025.

 With thriving businesses and business professionals that are keen to increase activity, the World Trade Center Dublin and the Embassy of Colombia are pleased to announce our partnership this year with a focus on increasing trade activity and trade relations between the Emerald Isle and the Land of Emeralds.

The Embassy of Colombia in Dublin opened its doors in 2018. Can you share an overview of the Embassy and how the first years of establishing the Embassy have been? What challenges and successes have you seen?

Colombia and Ireland have developed a strong and multifaceted relationship. We share values and common experiences related to peace. Our bilateral agenda has grown stronger since the visit of President Michael D. Higgins in 2017 and the opening of our embassies in Dublin in 2018, and Bogotá in 2019.

I was posted to be the first resident Ambassador of Colombia to Ireland, and Ireland has been a very welcoming post, so we have been fortunate to diversify our bilateral agenda extensively and to strength our people-to-people connections and links. One of the great successes we can account The Emerging Emeralds in International Business and Trade A Conversation with Her Excellency Mrs. Patricia Cortés Ortiz, Colombia Ambassador to Ireland 7 for is the high-level political engagement throughout this period. The first visit of a Colombian Foreign Minister, in the 20 years of relationship, occurred in September 2019 with the presence of Colombian Foreign Minister, Carlos Holmes Trujillo. Last year the Tánaiste, Leo Varadkar, visited Colombia on St. Patrick’s Day and our Former VicePresident and Foreign Minister, Marta Lucía Ramirez, visited Ireland in April. Our current Minister for Agriculture, a key portfolio in President Petro’s administration, visited Ireland last September.

n business, the creation of the first IrishColombian Business Network initially formed by 14 companies keeps growing; and the bilateral trade is diversifying steadily. We also expanded the scope of cooperation to include areas like agriculture, education, science, and innovation.

 Additionally, I can see the difference in the media coverage of Colombia in Ireland; there has been progress in dismantling stereotypes. This remains an area we work in every day, which can only be changed through dialogue, communication, education, and cultural exchanges.

The only obstacle for a more fluid bilateral relationship is the short-stay visa requirement by Ireland to Colombia. Currently, Ireland is the only country in Europe that requires a visa for Colombians which remains a main barrier to expanding our economic and people-to-people ties. Though, based on the facts and the many aspects we have in common with Ireland, we are very hopeful about this requirement being lifted soon.

The EU-Colombia Trade Agreement has been in place with Colombia since 2013 and has certainly led to the increase of exported products from Ireland to Colombia and vice versa. Please share some insights into Colombian trade, what sectors and businesses are performing the best in both markets, and what you envision will help progress and increase the activity between the two countries?

The signing of the 2013 agreement undoubtedly made the trade links more robust. Another milestone was the opening of the Embassies in Dublin and Bogotá. This allowed us to work together with Ireland to diversify the exports –the mining sector had been traditionally the most significant exporter from Colombia to Ireland– and increasing the non-mining goods brought to Ireland.

Foreign direct investment (FDI) originating from the EU during 2013 reached USD $2.582,5 million (a 666% growth compared to 2010), with a share of 15% over the total investment flow received from the world, according to the Central Bank (Banco de la RepĂşblica). During 2021 the investment coming from the EU surpassed USD $3.377 million, with an increase of 31% compared to 2013. Between 2013 and Q3 2022, FDI from Ireland recorded inflows of USD $126.8 million with the largest amount reported during 2016 at USD $98.6 million.

We are very pleased with the performance of non-mining exports from Colombia to Ireland. Despite the challenges, 2022 was a hugely positive year for our exports, and we closed with sales of USD 8.35 million in nonmining sectors, a 50% growth compared with 2021 and 81% against pre-pandemic levels. Our best performing sectors include green coffee, fresh flowers, and bananas. Also, this growth shows the commitment of both countries in the environment and to decrease their carbon footprint.

Colombia has been a producer of coffee for over 300 years and exporting for over 200, but we still value the growth in this sector. Thanks to the growing coffee culture in Dublin and all-around Ireland, the green coffee exports tripled between 2019 and 2021. We also saw a boost in flowers sales in Ireland, thanks to the work-from-home and outdoor socializing activities promoted during the pandemic, which increased Colombian exports by 88% compared to pre-pandemic figures. This is also so positive at a social level since it generates employment for 25% of the female workers in rural areas of Colombia.

We are working on a Trade Mission from Ireland to Colombia for 2023, or a highlevel visit accompanied by business representatives, for Irish businesses to familiarise with the Colombian market and know the business opportunities the country has to offer first-hand. Both governments are aligned in the importance of promoting sustainable projects, which we hope will translate into more Irish investment in renewable energy projects. We have also had very interesting cases of bilateral trade in the technology sector; some Irish companies have made Colombia a hub to provide their technology and software services to the US and Europe.

The main sectors of Irish direct investment in Colombia are energy –with a notable increase in green energies–, technology, paper-based packaging, and forestry. The imports of Ireland to Colombia in the services sector also deserves mentioning, since Ireland’s exports in this sector have tripled between 2016 and 2019. According to Trade Map, Irish exports to Colombia are concentrated in pharmaceuticals, instruments and apparatus, food preparations and beverages.

As you know, we at the WTC Dublin support the many small to medium sized businesses in Ireland that all have such a strong brand story and history. Our goal is to assist them with their international trade journey and to open new opportunities for them as their business grows. What advice do you have for Irish SMEs that are looking to break into the Colombian market? What are the important few steps they should be taking as they consider growth into Colombia?

Colombia has excellent business opportunities for Irish SMEs; and as I mentioned it can serve as a regional hub if they are considering expanding their business to the Americas.

Colombia has the fourth-largest economy in the region and stands out for being one of the most stable ones in Latin America. In 2021, the GDP increased by 10.6%, and the forecast for the following five years shows that Colombia’s economy will grow faster than markets such as Brazil, Mexico, and Argentina. In addition, Colombia offers an attractive domestic market of more than 51 million inhabitants, being the 3rd largest country in Latin America.

Thanks to its strategic location, Colombia can act for Irish companies as a bridge between North and South American countries. Due to its privileged geographic location in the centre of the continent, which enables us to connect to any destination in the hemisphere in short periods, Colombia is an ideal friend-shoring destination.

Additionally, Colombia is located within two time zones of all major cities in the Americas, making the country an excellent destination for services exports. Companies here have preferential access to 97% of countries in the Americas due to the Free Trade Agreement in place. These countries represent more than 31% of the world’s GDP and 1 billion inhabitants.

Companies located in Colombia also benefit from the free trade zone, which offers multiple incentives and is at the forefront of global trade trends. For example, e-commerce operations are allowed in free zones for users of goods and services through postal traffic and urgent shipments.

The first step for any company wishing to enter the Colombian market should be to get in touch with ProColombia, our government promotion agency for investment, trade, and tourism; and the World Trade Centre, of course. The Embassy in Ireland can also support companies with an initial exploration. We are always open to connecting companies with key factors and entities that will support their journey prior and when in Colombia.

Family-owned companies or family members working together is a common business practice in both Colombia and Ireland. Do you think this cultural similarity strengthens the success of partnerships between Colombian and Irish companies?

Yes, absolutely. Colombian and Irish societies are very family oriented. For example, in the agricultural sector in Colombia, most production is done by small and medium sized holders and family-run businesses. According to the National Federation of Coffee Growers (FNC), more than 540,000 families are coffee growers and represent 96% of the producers nationwide. In the cocoa sector, small and medium growers, represented by 65,000 families, produce most of the cacao in the country. Hence why the commitment of our government to small producers is so important and makes so much sense. We have noticed we have that in common with Ireland, with government policies supporting small producers and family-owned businesses.

This means companies and final consumers understand this culture, which facilitates doing business together.

At the top of Colombia’s exports to Ireland is in the Coffee and Tea category. What were and are the key components that place this category at the top of the list? What steps were taken to establish this strong export for Colombia in Ireland?

I have seen coffee culture in Ireland grow exponentially in the past four years, which can only be positive for Colombia. I feel there are several reasons for the interest of Ireland in our coffee. Quality first, but tradition, rich history, sustainability and socially responsible production are very close, and key reasons some of the biggest importers may mention. Colombia is the world’s leading producer of mild and specialty coffee. We only produce Arabica which has lower concentration of caffeine making it a healthier option. Our biodiversity allows for two harvests and supply all year round. This biodiversity means different climates and a varied geography giving our coffee very diverse cup profiles.

Colombia is not only committed to support small coffee farmers as I mentioned, but my country also recently joined the International Women’s Coffee Alliance (IWCA) to make sure we empower female coffee growers and women within the coffee industry.

 Besides coffee, Irish people also love their chocolate, and we would love to take advantage of this fact. 10 Cocoa has been a great contributor to peace in terms of being a substitution to illegal crops. Our cocoa has received numerous distinctions for flavour and aroma worldwide, so we would like Irish consumers to associate Colombia not only with great coffee but with great cocoa.

One of the top concerns since the COVID-19 pandemic has been in the area of shipping and receiving when we talk about international trade. Can you share the current status Colombia ports and any latest insights in terms of receiving and sending goods to and from Ireland?

Logistics in the last few years have been indeed challenging worldwide. In Colombia, between 2019 and 2020, there was a 15.3% decrease in port traffic. However, in 2021 Colombia recorded a slight post-pandemic recovery by 1.4% YOY.

Colombia has over 3,000 maritime export routes to 750 ports in more than 140 countries in the world. The Liner Shipping Connectivity Index (LSCI) of the UNCTAD recognized the Cartagena Port Group as the best-connected port in Latin America and the Caribbean in 2020 ahead of Callao in Perú, Guayaquil in Ecuador and Manzanillo in Panamá. Regarding maritime connectivity with Ireland, there are five shipping lines on the Atlantic coast, whose transit times are as low as 16 days, with transfers in the ports of the Netherlands, Panama, and France. From Buenaventura, in the Colombian Pacific, there are five shipping lines and connections are made in the ports of Panama, Netherlands, Morocco, and the United Kingdom.

Tourism is a key economic driver in both Ireland and Colombia. Are efforts being made to bring more trade missions to Colombia? Are there opportunities for spending holidays in your beautiful and diverse country?

Tourism is indeed a key economic driver for Colombia and Ireland. In Colombia, we are committed to promoting sustainable tourism, where people can enjoy the nature and cultural richness of Colombia in a more inclusive, sustainable, and resilient manner.

Colombia is the most biodiverse country per square meter. It also has the highest biodiversity of birds in the world, with over 1,954 species. In Colombia, you can find six countries in one, which is why we invite tourists to visit the six regions of Colombia; The Caribbean, Easter, and Western Andes, Pacific, Amazon, and Massif. You will find completely different landscapes, nature, and traditions in each region.

Colombia is becoming trendier, multiple international newspapers have recognized Colombia’s nature and cultural richness. Forbes Magazine ranked Colombia as the third most beautiful place in the world; and The New York Times included two Colombian cities in its list of “52 places to go” in 2023. The National Geographic Magazine choose Colombia as its cover for its November magazine and capture the real essence of the country by exploring different regions.

We work daily to promote Colombia’s tourism and invite Irish to visit our countries. We have participated in different tourism fairs around the world to showcase Colombia. Last month, we had a stand of photo credit: ProColombia 11 Colombia at the Holiday World Show Fair Dublin, the largest tourism fair in Ireland. We were also present in Fitur this year, one of the biggest tourism fairs worldwide. In the past, we had a mission of tourism journalists traveling to Colombia to learn more about the country. We aim to keep promoting this type of initiatives. 

The Colombia and Ireland relations is deep rooted in history and has benefited both countries with great collaboration in both business and in tourism. What do you see as the next area of collaboration between the two countries, what more can be done and what initiatives/projects excite you the most? 

I see several areas where there is room for further collaboration: education, science, agro-tech, innovation, women’s empowerment, and energy transition.

Colombia and Ireland are committed to reducing their carbon footprint and promoting sustainable projects has become a priority for our governments. We both have excellent potential for wind energy, an area of work in which we can cooperate and increase bilateral trade.

Colombia offers excellent opportunities for Irish investors in wind and solar energy. We already have a renowned Irish company executing big solar and wind energy projects in Colombia, and we hope to welcome more.

Technology services is another sector where both countries are powerful. The business relationship has become more robust, with Irish companies choosing Colombia as a hub to export services to other parts of the world. This type of case represents a clear economic advantage to both countries, and I look forward to working with the WTC to grow the current number of companies doing so.

I believe the elimination of the short-stay visa requirement by Ireland to Colombian citizens would unlock huge possibilities for our investment, trade and tourism relations. 

Also, it would contribute to exchanges in education, science and innovation, three areas both Colombia and Ireland are very invested in. This flexibilization would mean a milestone for our bilateral relationship and will provide many opportunities. 

A very exciting event would be the possible Trade Mission planned to Colombia this year. I am sure the existing Irish-Colombian Business Network will welcome this and other opportunities we put together in partnership with the World Trade Center Dublin, to facilitate a conversation among Irish businesses with an interest in entering the Colombian market and vice versa. 

Colombia – Ireland Trade Statistics Source: United Nations COMTRADE database on international trade 

In 2021, Ireland exported US$206.39 Million to Colombia with the top categories: Pharmaceutical products; Optical, photo, medical apparatus; Cereal, flour, starch, milk preparation products; Machinery; Beverages, spirits and vinegar; Plastics; and Dairy products. 

In the same year, Colombia exported US$13.61 Million with the top categories: Mineral fuels, oils, distillation products; Coffee, tea, mate and spices; Electrical equipment; Edible fruits and nuts; Machinery; Pharmaceutical products; Live trees, plants and flowers; and Sugars and confectionary.

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