Background Notes For Colombia
U.S. Department of State
Background Notes: Colombia, March 1998
Released by the Bureau of Inter-American Affairs.
OFFICIAL NAME: Republic of Colombia
PROFILE
Geography
Area: 1.2 million sq. km. (440,000 sq. mi.); about the size of
Texas, New Mexico, and Arkansas combined; fourth-largest country
in South America.
Cities: Capital--Santa fe de Bogota (pop. about 6 million).
Other major cities--Medellin, Cali, Barranquilla, Cartagena.
Terrain: Flat coastal areas, three rugged parallel mountain chains,
central highlands, and flat eastern grasslands with extensive
coastlines on the Pacific Ocean and Caribbean Sea.
Climate: Tropical on coast and eastern plains, cooler in highlands.
People
Nationality: Noun and adjective--Colombian(s).
Population: 37 million.
Annual growth rate: 1.7%.
Religion: Roman Catholic 95%.
Language: Spanish.
Education: Years compulsory--9. Attendance--80%
of children enter school. Only five years of primary school are
offered in rural areas. Literacy--93% in urban areas, 67%
in rural areas.
Health: Infant mortality rate--37/1,000. Life expectancy--men
67 yrs., women 72 yrs.
Government
Type: Republic.
Independence: July 20, 1810.
Constitution: 1991.
Branches: Executive--president (chief of state and head
of government). Legislative--Bicameral Congress. Judicial--Supreme
Court, Constitutional Court, Council of State.
Administrative divisions: 32 departments; Santa fe de Bogota,
capital district.
Major political parties: Liberal Party, Social Conservative Party,
Democratic Alliance/M-19 (AD/M-19), Patriotic Union (UP).
Suffrage: Universal age 18 and over.
Economy ( 1996)
GDP: $86 billion.
Annual growth rate: 2.1%.
Per capita GDP: $2,225.
Natural resources: Coal, petroleum, natural gas, iron ore, nickel,
gold, silver, copper, platinum, emeralds.
Agriculture (10% of GDP): Products--coffee, bananas, cut
flowers, cotton, sugar cane, livestock, rice, corn, tobacco, potatoes,
soybeans, sorghum. Cultivated land--3% of total land area.
Manufacturing (19% of GDP): Types--textiles and garments,
chemicals, metal products, cement, cardboard containers, plastic
resins and manufactures, beverages.
Other sectors (by percentage of GDP): Financial services--10%.
Community, social, and personal services--14%. Retailing,
restaurants and hotels--11.3%. Transportation, storage,
and communications services--9%. Mining and quarrying--3%.
Construction and public works--3.6%. Electricity, gas,
and water--1%.
Trade: Exports--$10.6 billion: petroleum, coffee, coal,
ferronickel, bananas, flowers, chemicals and pharmaceuticals,
textiles and garments, gold, sugar, cardboard containers, printed
matter, cement, plastic resins and manufactures, emeralds. Major
markets--U.S. ( 39%), Germany, Netherlands, Japan. Imports--$12.8
1 billion: machinery/equipment, grains, chemicals, transportation
equipment, mineral products, consumer products, metals/metal products,
plastic/rubber, paper products, aircraft, oil and gas industry
equipment and supplies. Major suppliers--U.S. ( 40% %),
Venezuela, Japan, Germany, Panama.
Exchange rate: 1,335 Colombian Pesos=U.S.$1. ( March 1998)
PEOPLE
Colombia is the third-most populous country in Latin America,
after Brazil and Mexico. Movement from rural to urban areas has
been heavy. The urban population increased from 57% of the total
population in 1951 to about 74% by 1994. The nine eastern departments,
constituting about 54% of Colombia's area, have less than 3% of
the population and a density of fewer than one person per square
kilometer (two persons per sq. mi.). Thirty cities have 100,000
or more inhabitants. Residents of the high Andes Mountains must
cope with sometimes deadly volcanic activity--more than 20,000
died in the 1985 eruption of the Nevada del Ruiz Volcano near
the town of Armero in Tolima Department. The Galeras Volcano near
Pasto (Narino Department) is active and under observation by the
Colombian Government.
The ethnic diversity in Colombia is a result of the intermingling
of indigenous Indians, Spanish colonists, and African slaves.
Today, only about 1% of the people can be identified as fully
Indian on the basis of language and customs. Few foreigners have
immigrated to Colombia, compared to several other South American
countries.
HISTORY
During the pre-Columbian period, the area now known as Colombia
was inhabited by Indians, mostly primitive hunters or nomadic
farmers. The Chibchas, who lived in the Bogota region, dominated
the various Indian groups.
Spaniards first sailed along the north coast of Colombia as early
as 1500, but the first permanent settlement, at Santa Marta, was
not established until 1525. In 1549, the area was established
as a Spanish colony with the capital at Santa fe de Bogota. In
1717, Bogota became the capital of the viceroyalty of New Granada,
which included what is now Venezuela, Ecuador, and Panama. The
city became one of the principal administrative centers of the
Spanish possessions in the New World, along with Lima and Mexico
City.
On July 20, 1810, the citizens of Bogota created the first representative
council to defy Spanish authority. Total independence was proclaimed
in 1813, and in 1819 the Republic of Greater Colombia was formed.
The Republic
After the defeat of the Spanish army, the republic included all
the territory of the former viceroyalty. Simon Bolivar was elected
its first President and Francisco de Paula Santander, Vice President.
Two political parties that grew out of conflicts between the followers
of Bolivar and Santander, the Conservatives and the Liberals,
have dominated Colombian politics. Bolivar's supporters, who later
formed the nucleus of the Conservative Party, advocated a strong
centralized government, alliance with the Roman Catholic Church,
and a limited franchise. Santander's followers, forerunners of
the Liberals, wanted a decentralized government, state rather
than church control over education and other civil matters, and
a broadened suffrage.
Throughout the 19th and early 20th centuries, each party held
the presidency for roughly equal periods of time. Colombia, unlike
many Latin American countries, maintained a tradition of civilian
government and regular, free elections. The military has seized
power only three times in Colombia's history: in 1830, when Ecuador
and Venezuela withdrew from the republic (Panama did not become
independent until 1903); in 1854; and in 1953-57. In the first
two instances, civilian rule was restored within a year.
Notwithstanding the country's commitment to democratic institutions,
Colombia's history has been characterized by periods of widespread,
violent conflict. Two civil wars resulted from bitter rivalry
between the Conservative and Liberal Parties. The War of a Thousand
Days (1899-1902) cost an estimated 100,000 lives, and up to 300,000
people perished during "La violencia" (The Violence)
of the late 1940s and 1950s.
A military coup in 1953 brought Gen. Gustavo Rojas Pinilla to
power. Initially, Rojas enjoyed considerable popular support,
due largely to his success in reducing "La violencia."
When he did not restore democratic rule, however, he was overthrown
by the military in 1957 with the backing of both political parties,
and a provisional government was installed.
The National Front
In July 1957, former Conservative President Laureano Gomez (1950-53)
and former Liberal President Alberto Lleras Camargo (1945-46)
issued the "Declaration of Sitges," in which they proposed
a "National Front" whereby the Liberal and Conservative
parties would jointly govern. Through regular elections, the presidency
would alternate between the two parties every four years; the
parties also would have parity in all other elective and appointive
offices.
The National Front ended "La violencia." National Front
administrations instituted far-reaching social and economic reforms
in keeping with the Alliance for Progress, an inter-American program
of economic assistance which began in 1961 with major financial
backing by the United States.
Although the parity system established by the Sitges agreement
was terminated in 1978, the 1886 Colombian constitution, which
was in effect until 1991, required that the losing political party
be given adequate and equitable participation in the government.
Although the 1991 constitution does not have that requirement,
subsequent governments have included opposition parties in the
government.
Post-National Front Years
The National Front ended in 1974, having made efforts to resolve
problems of inflation, unemployment, and inequitable income distribution
while cutting government expenses. Between 1978 and 1982, the
government focused on ending the limited, but persistent, Cuban-backed
insurgency that sought to undermine Colombia's traditional democratic
system. The success of the government's efforts enabled it to
lift the state-of-siege decree that had been in effect for most
of the previous 30 years.
In 1984, President Belisario Betancur, a Conservative who won
47% of the popular vote, negotiated a cease-fire that included
the release of many guerrillas imprisoned during the effort to
overpower the insurgents. The cease-fire began to unravel when
Democratic Alliance/M-19 (AD/M-19) guerrillas resumed fighting
in 1985.
A vicious attack on the Palace of Justice in Bogota by the AD/M-19
on November 6-7, 1985, shocked Colombia and the entire world.
Of the 115 people killed, 11 were Supreme Court justices. Although
the government and the Revolutionary Armed Forces of Colombia
(FARC), the largest guerrilla group, renewed their truce in March
1986, peace with the AD/M-19 and dissident factions of other guerrilla
groups seemed remote as Betancur left office.
The next administrations had to contend with both the guerrillas
and the narcotics traffickers, who operated with relative impunity
within Colombia. Narco-terrorists assassinated three presidential
candidates before Cesar Gaviria Trujillo was elected in 1990.
With the death of Medellin cartel leader Pablo Escobar in December
1993, indiscriminate acts of violence associated with that organization
have abated.
GOVERNMENT
President Ernesto Samper assumed office in August 1994. Samper
vowed to continue many of the economic and foreign policy goals
of the Gaviria Administration, while also placing greater emphasis
on addressing social inequities and eliminating poverty. However,
Samper's political crisis relating to contributions from drug
traffickers to his 1994 presidential campaign diverted attention
away from these social programs, thus slowing, and in some cases,
halting progress.
The new constitution, enacted on July 4, 1991, strengthened the
administration of justice with the introduction of an accusatorial
system which replaced the previous Napoleonic Code system. Other
significant reforms under the new constitution provide for civil
divorce, dual nationality, the election of a vice president, and
the election of departmental governors. The constitution expanded
citizens' basic rights, including that of "tutela,"
under which an immediate court action can be requested by an individual
if he feels his constitutional rights are being violated and if
there is no other legal recourse.
The national government has separate executive, legislative, and
judicial branches. The President is elected for a four-year term
and cannot be reelected. The 1991 constitution reestablished the
position of Vice President, who is elected on the same ticket
as the president. By law, the vice president will succeed in the
event of the president's resignation, illness, or death. The first
Vice President, Humberto De La Calle Lombana, took office on August
7, 1994. He subsequently resigned in September 1996 in protest
of Samper's management of the government and narco-links, and
was replaced by Carlos Lemos Simmonds.
Colombia's bicameral Congress consists of a 102-member Senate
and a 161-member House of Representatives. Senators are elected
on the basis of a nationwide ballot, while representatives are
elected on a regional basis. The country's capital is considered
a separate region and elects its own representatives. Members
may be reelected indefinitely, and, unlike the previous system,
there are no longer alternate Congressmen. Congress meets twice
a year, and the president has the power to call it into special
session when needed.
Principal Government Officials
President--Ernesto SAMPER Pizano
Vice President--Carlos LEMOS Simmonds
Minister of Foreign Relations--Camilo REYES Rodriguez (interim)
Ambassador to the U.S.--Juan Carlos ESGUERRA Portacarrero
Ambassador to the OAS--Carlos Holmes TRUJILLO Garcia
Ambassador to the UN--Julio LONDONO Paredes
Colombia maintains an embassy in the United States at 2118 Leroy
Place NW, Washington, DC 20008 (tel. 202-387-8338). Colombian
consulates are located in Atlanta, Boston, Chicago, Detroit, Houston,
Los Angeles, Miami, New Orleans, New York, San Francisco, San
Juan, Tampa, and Washington.
DEFENSE
Colombia's Ministry of Defense, charged with the country's internal
and external defense and security, has an army, navy (which includes
a coast guard), air force, and national police under the leadership
of a civilian Minister of Defense. The armed forces number about
235,000 uniformed personnel: 145,000 military and 90,000 police.
Many Colombian military personnel have received training in the
United States or in U.S. military schools in Panama. The United
States has provided equipment to the Colombian military through
the military assistance program and foreign military sales. Narcotics
decertification in 1996 forced a temporary halt to U.S. military
assistance programs, except for those related to counter-narcotics.
On August 1, 1997, the U.S. and Colombia signed an End Use Monitoring
(EUM) memorandum of understanding which stipulates that U.S. counternarcotics
assistance to the Colombian military is conditioned on human rights
screening of proposed recipient units.
ECONOMY
Colombia, under the leadership of President Cesar Gaviria Trujillo,
undertook a profound economic reform program in 1990-94 that opened
up its economy to international trade and investment. The Gaviria
Government pursued prudent fiscal, exchange rate, and monetary
policies and implemented sweeping changes in the areas of finance,
labor, exchange rates, and trade. These measures were largely
responsible for the sustained economic growth enjoyed by Colombia
during this period; 3.3% average GDP growth during 1990-93, and
a robust 5.3% in 1995. Upon taking office in August 1994, President
Samper promised to continue many of the programs contained in
Gaviria's "apertura," or economic liberalization program.
While the Samper Administration has not undermined "apertura,"
it also has not pushed it forward. Privatization has slowed under
the Samper Government.
Political stability questions stemming from allegations that Samper
accepted drug money in his presidential campaign have affected
the economy. Samper has made repeated concessions in labor disputes
by acceding to workers' demands, including inflationary wage increases.
This led the private sector in 1997 to abandon the "Social
Pact for Productivity, Prices and Wages," a program instituted
in 1995 in which the economy's major players (government, private
sector, and labor) agreed to exercise discipline over wages and
prices to keep inflation in check. Continued internal security
problems stemming from Colombia's civil conflict also affect economic
growth.
In 1996, the Colombian economy produced real growth of 2.1%, down
from the 5.3% recorded in 1995. Economic performance in 1996 owed
its strength largely to the 7.7% growth in the mining and hydrocarbons
sector and a 9.9% growth in the services sector. Exports grew
only slightly, from $10.2 billion 1995 to $10.6 billion in 1996.
Unemployment rose to 11.3% by the end of 1996, its highest level
in almost 10 years. The trade deficit of $2.2 billion was compensated
for by capital flows in the form of foreign direct investment
and private sector borrowing.
Colombia's 1996 foreign exchange reserves were approximately $9.9
billion. The Government of Colombia failed to bring inflation
in at the 17.6% % target for 1996, with a year-end inflation rate
of 21.6%, up from 1995's figure of 19.3%.
Colombia is the only major Latin American country which did not
have to reschedule its external debt during the debt crisis of
the 1980s. The nation paid both principal and interest to its
foreign creditors. Today it enjoys one of the highest credit ratings
in the region.
Colombia's total foreign debt was approximately $28 billion in
1996. With a strong net international reserves position ($9.9
billion at the end of 1996), Colombia has successfully reentered
the international capital markets in Europe, Japan, and the United
States.
Mining and Energy
Colombia is well-endowed with minerals and energy resources. It
has the largest coal reserves in Latin America and is second to
Brazil in hydroelectric potential. Estimates of oil reserves in
1995 were 3.1 billion barrels, equal to about 3.3% of the world
total. It also possesses significant amounts of ferronickel, gold,
silver, platinum, and emeralds.
The discovery of 2 billion barrels of high-quality oil at the
Cusiana and Cupiagua fields, about 125 miles east of Bogota, assures
Colombia's crude oil self-sufficiency until well into the next
decade. Production from those fields is expected to reach 1 million
barrels per day (b/d) by the year 2000. However, refining capacity
cannot satisfy domestic demand, so some refined products, especially
gasoline, must be imported. Plans for the construction of a new
refinery are under development.
Total crude oil production averages 620,000 b/d; about 184,000
b/d were exported. The Government of Colombia has come under pressure
for the stringency of its association contracts for the exploration
and production of Colombia's oil.
Colombia has 6.6 billion tons of proven coal reserves and its
coal production totaled 21.7 million metric tons (mt) in 1995.
Production from El Cerrejon, the world's largest open pit coal
mine, located on Colombia's Guajira Peninsula, accounted for 65%
of that amount. Colombia's exports of 18.4 million mt of steam
coal in 1994 made it the world's fourth-largest exporter of this
commodity. Coal exports are expected to reach 25 million tons
in 1996, and private and public investment in Colombia's coal
fields and related infrastructure projects are expected to enable
the country to export about 35 million mt at the beginning of
the next decade.
While Colombia has vast hydroelectric potential, a prolonged drought
in 1992 forced severe electrical rationing throughout the country
until mid-1993. The consequences of the drought on electricity-generating
capacity has caused the government to commission the construction
or upgrading of 10 thermoelectric power plants. Half will be coal-fired,
half will be fired by natural gas. The government has also begun
awarding bids for the construction of a natural gas pipeline system
that will extend from the country's large gas fields to its major
population centers. Plans call for the completion of this project,
which will make natural gas available to millions of Colombian
households, by the middle of the next decade.
Trade
Colombia's balance of trade showed a deficit of $2.2 billion in
1996, slightly better than the $2.5 billion deficit in 1995. Total
imports reached $12.8 billion, while exports were $10.6 billion.
Colombia's major exports continue to be coffee, petroleum, coal,
nickel, gold, and non-traditional exports (e.g., cut flowers,
semi-precious stones, sugar, and tropical fruits). Colombia's
major trading partner in 1996 continued to be the United States,
which took 39% of Colombia's exports and provided 40% of its imports.
The EU and Japan remain important trading partners, as do Andean
Pact partners, especially Venezuela. Diplomatic relations with
a number of Pacific nations were established during the Gaviria
Administration. Regular diplomatic exchanges with Japan, China,
South Korea, and other Asian nations are designed to open these
markets to Colombian products.
Foreign Investment
In 1991 and 1992, the government passed laws to stimulate foreign
investment in nearly all sectors of the economy. The only activities
closed to foreign direct investment are defense and national security,
disposal of hazardous wastes, and real estate (the latter restriction
to control money laundering). Colombia established a special entity--Coinvertir--to
assist foreigners in making investments in the country. Colombia
received $756 million in non-petroleum related foreign investment
in 1995.
Major foreign investment projects underway include the $6 billion
development of the Cusiana and Cupiagua oil fields, development
of coal fields in the north of the country, and the recently concluded
licensing for establishment of cellular telephone service. The
United States accounted for 51.2% of the $6.5 billion stock of
non-petroleum foreign direct investment in Colombia at the end
of 1995.
On October 21, 1995, under the International Emergency Economic
Powers Act (IEEPA), President Clinton signed an Executive Order
barring U.S. entities from any commercial or financial transactions
with four Colombian drug kingpins and with individuals and companies
associated with the traffic in narcotics, as designated by the
Secretary of the Treasury in consultation with the Secretary of
State and the Attorney General. The list of designated individuals
and companies is amended periodically and is maintained by the
Office of Foreign Asset Control at the Department of the Treasury,
tel. (202) 622-0077 (ask for Document #1900).
Industry and Agriculture
The most industrially diverse member of the five-nation Andean
Pact, Colombia has four major industrial centers--Bogota, Medellin,
Cali, and Barranquilla, each located in a distinct geographical
region. Colombia's industries include textiles and clothing, leather
products, processed foods and beverages, paper and paper products,
chemicals and petrochemicals, cement, construction, iron and steel
products, and metalworking.
Agriculture accounted for 10% of Colombia's GDP in 1996. Its diverse
climate and topography permits the cultivation of a wide variety
of crops. In addition, all regions yield forest products, ranging
from tropical hardwoods in the hot country to pine and eucalyptus
in the colder areas.
Cacao, sugar cane, coconuts, bananas, plantains, rice, cotton,
tobacco, cassava, and most of the nation's beef cattle are produced
in the hot regions from sea level to 1,000 meters elevation. The
temperate regions--between 1,000 and 2,000 meters--are better
suited for coffee; certain flowers; corn and other vegetables;
and fruits such as citrus, pears, pineapples, and tomatoes. The
cooler elevations--between 2,000 and 3,000 meters-- produce wheat,
barley, potatoes, cold-climate vegetables, flowers, dairy cattle,
and poultry.
Narcotics Cultivation and Control
Colombia is the world's leading supplier of refined cocaine and
a growing supplier of heroin, especially to the United States.
Colombia's territory is also the second-largest area under coca
cultivation. Despite the death of Medellin cartel drug lord Pablo
Escobar in 1993 and the arrests of major Cali cartel kingpins
in 1995 and 1996, the Colombian drug cartels remain among the
most sophisticated criminal organizations in the world. They control
cocaine processing, international wholesale distribution chains,
and markets.
Colombia is engaged in a broad range of narcotics control activities.
Through aerial spraying of herbicide and manual eradication, Colombia
has attempted to keep coca, opium poppy, and cannabis cultivations
from expanding. The government has committed itself to the eradication
of all illicit crops, interdiction of drug shipments, and financial
controls to prevent money laundering.
Corruption and intimidation by traffickers complicate the drug-control
efforts of many institutions of government. Despite a major overhaul
of the Colombian judicial system as a result of the 1991 Constitution,
changes have yet to produce successful prosecution of narcotics
traffickers. Colombia passed a revised criminal procedures code
in 1993 which permits traffickers to surrender and negotiate lenient
sentences in return for cooperating with prosecutors. In December
1996 and February 1997, however, the Colombian Congress passed
legislation to toughen sentencing, asset forfeiture, and money
laundering penalties. In November 1997, the Colombian Congress
amended the constitution to permit the extradition of Colombian
nationals, albeit not retroactively--which could have the effect
of shielding major traffickers from justice in the United States
and other countries where they committed their crimes. The legislation
is currently being reviewed by the Constitutional Court. The Colombian
Government permits extradition of foreigners resident in Colombia.
On March 1, 1996 and again on February 28, 1997, President Clinton
made the decision not to certify Colombia as fully cooperating
with the U.S. or taking adequate steps on its own to meet the
objectives of the 1988 UN Convention on drugs. The U.S. concluded
that there was a lack of effort at the top levels of Colombia's
government to push for legislative and judicial reforms to strengthen
Colombian government institutions' ability to fight narco-trafficking.
Under the certification legislation, the U.S. Government was required
to halt non-humanitarian and non-counternarcotics aid to Colombia
and to vote against loans to Colombia by certain multilateral
development banks. U.S. law provides for the discretionary imposition
of economic sanctions, which were not imposed.
On February 26, 1998, the President determined that the vital
national interests of the United States require that U.S. assistance
to Colombia be provided to meet the increasing challenges posed
to counternarcotics efforts in Colombia. The President thus granted
Colombia a national interests certification, which waives the
restrictions of decertification and allows for broader U.S. engagement
with Colombia in the fight against illegal narcotics.
Colombia, along with other drug producing and drug transit countries,
will be reviewed for counter-narcotics performance again at by
March 1, 1999 and each successive year.
FOREIGN RELATIONS
Colombia seeks diplomatic and commercial relations with all countries,
regardless of their ideologies or political or economic systems.
In the 1980s, it broadened its bilateral and multilateral relations,
joining the Non-Aligned Movement--which it chairs 1994-1998, the
Contadora Group, and the Group of Eight (now the Rio Group). In
addition, Colombia has signed free trade agreements with Chile,
Mexico, and Venezuela.
Colombia has traditionally played an active role in the UN, the
Organization of American States, and their subsidiary agencies.
Former President Gaviria became Secretary General of the OAS in
September 1994. Colombia was a participant in the December 1994
Summit of the Americas and followed up on initiatives developed
at the summit by hosting two post-summit Ministerial-level meetings
on trade and science and technology.
Colombia regularly participates in international fora, including
the Organization of American States' drug body (CICAD), on money
laundering, chemical controls, and drug abuse prevention. While
the Colombian Government ratified the 1988 UN convention on narcotics
in 1994--the last of the Andean governments to do so--it took
important reservations, notably to the anti-money-laundering measures,
asset forfeiture and confiscation provisions, maritime interdiction,
and extradition clauses. Some of these reservations have subsequently
been withdrawn, most notably the reservation on extradition.
U.S.-COLOMBIAN RELATIONS
In 1822, the United States became one of the first countries to
recognize the new republic and to establish a resident diplomatic
mission. Today, about 22,000 U.S. citizens live in Colombia, most
of them dual nationals. In 1995, over 102,000 American tourists
visited Colombia.
The decertification announcement on March 1, 1996 occurred during
the midst of a major political scandal in Colombia, linking President
Samper to contributions by drug traffickers to his 1994 presidential
campaign. The United States concluded that President Samper had
undermined Colombian counter-narcotics efforts, and revoked Samper's
U.S. tourist visa on July 11, 1996, in accordance with U.S. Immigration
and Nationality Act (INA) provisions on narcotics trafficking.
President Samper retains his diplomatic visa, which is not subject
to the same INA regulations.
Despite the strain the visa revocation and decertification decisions
placed on political relations, the U.S. and Colombian Governments
have continued to cooperate and consult on bilateral issues. In
1995 and 1996, the U.S. and Colombia signed important agreements
on environmental protection and civil aviation. The two countries
have signed agreements on asset sharing and chemical control.
In 1997, the U.S. and Colombia signed an important maritime shipboarding
agreement to allow for search of suspected drug-running vessels.
During the period 1988-1995, the United States provided approximately
$691 million in assistance to Colombia. In 1996, U.S. assistance
totaled $73.9 million. This funding supports Colombia's counter-narcotics
efforts, such as arresting drug traffickers, seizing drugs and
illegal processing facilities, and eradicating coca and opium
poppy.
Trade Development
Colombia is the United States' fourth-largest export market in
Latin America (behind Mexico, Brazil, and Venezuela) and the twenty-fifth-largest
market for U.S. products worldwide. In 1995, two-way merchandise
trade between the United States and Colombia totaled $9 billion.
The United States is Colombia's principal trading partner. Colombia
benefits from duty-free entry (for a 10-year period, through 2001)
for certain of its exports to the United States under the Andean
Trade Preferences Act. Colombia improved protection of intellectual
property rights through the adoption of three Andean Pact decisions
in 1993 and 1994, but the U.S. remains concerned over deficiencies
in licensing, patent regulations, and copyright protection.
The petroleum and natural gas, coal mining, chemical, and manufacturing
industries attract the greatest U.S. investment interest. U.S.
investment accounted for 51.2% ($3.3 billion) of the total $6.4
billion in foreign direct investment registered between 1967 and
1995. Worker rights and conditions in the U.S.-dominated sectors
are superior to general working conditions. Examples include shorter-than-average
working hours, higher wages, and compliance with health and safety
standards above the national average.
Principal U.S. Embassy Officials
Ambassador--Curtis W. Kamman
Deputy Chief of Mission--Oliver P. Garza
Political and Economic Counselor--Joseph McBride
Consul General--Jean A. Louis
Commercial Counselor--Dorothy L. Lutter
Administrative Counselor--Roland W. Bullen
Defense Attache--Col. William C. Spracher
Agricultural Attache--Vacant
Public Affairs Officer (USIS)--Chris Filostat
Regional Security Officer--Seymour DeWitt
USAID Director--Carl Cira
The U.S. Embassy in Colombia is located at 22D Bis, No. 47-51,
Bogota (tel: (571) 315-0811; fax: (571) 315-2196). The mailing
address is APO AA 34038.
OTHER CONTACT INFORMATION:
U.S. Department of Commerce
Trade Information Center
International Trade Administration
14th and Constitution Avenue, NW
Washington, DC 20230
Tel: 800-USA-TRADE
Internet: http://www.ita.doc.gov
Colombian-American Chamber of Commerce
Calle 98, @2264, Oficina 1209
Apartado Aereo 8008
Bogota, Colombia
Tel: (571) 621-5042/7925/6838
Fax: (571) 612-6838
Email: 73050.3127@compuserve.com
(Chapters in Cali, Cartagena, Medellin)
TRAVEL AND BUSINESS INFORMATION
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Travel Warnings and Consular Information Sheets. Travel Warnings
are issued when the State Department recommends that Americans
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exist for all countries and include information on immigration
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Public Announcements are issued as a means to disseminate
information quickly about terrorist threats and other relatively
short-term conditions overseas which pose significant risks to
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are available by calling the Bureau of Consular Affairs at 202-647-5225
or via the fax-on-demand system: 202-647-3000. Travel Warnings
and Consular Information Sheets also are available on the Consular
Affairs Internet home page: http://travel.state.gov
and the Consular Affairs Bulletin Board (CABB). To access
CABB, dial the modem number: (301-946-4400 (it will accommodate
up to 33,600 bps), set terminal communications program to N-8-1
(no parity, 8 bits, 1 stop bit); and terminal emulation to VT100.
The login is travel and the password is info (Note:
Lower case is required). The CABB also carries international security
information from the Overseas Security Advisory Council and Department's
Bureau of Diplomatic Security. Consular Affairs Trips for Travelers
publication series, which contain information on obtaining passports
and planning a safe trip abroad, can be purchased from the Superintendent
of Documents, U.S. Government Printing Office, P.O. Box 371954,
Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling abroad
may be obtained from the Office of Overseas Citizens Services
at (202) 647-5225. For after-hours emergencies, Sundays and holidays,
call 202-647-4000.
Passport Services information can be obtained by calling
the 24-hour, 7-day a week automated system ($.35 per minute) or
live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per
minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major
credit card users (for a flat rate of $4.95) may call 1-888-362-8668
(TDD: 1-888-498-3648).
Travelers can check the latest health information with
the U.S. Centers for Disease Control and Prevention in Atlanta,
Georgia. A hotline at (404) 332-4559 gives the most recent health
advisories, immunization recommendations or requirements, and
advice on food and drinking water safety for regions and countries.
A booklet entitled Health Information for International Travel
(HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements, currency
and customs regulations, legal holidays, and other items of interest
to travelers also may be obtained before your departure from
a country's embassy and/or consulates in the U.S. (for this country,
see "Principal Government Officials" listing in this
publication).
U.S. citizens who are long-term visitors or traveling in dangerous
areas are encouraged to register at the U.S. embassy upon arrival
in a country (see "Principal U.S. Embassy Officials"
listing in this publication). Registering with the embassy may
help you to replace lost identity documents or help family members
contact you in case of an emergency.
Further Electronic Information:
Department of State Foreign Affairs Network. Available
on the Internet, DOSFAN provides timely, global access to official
U.S. foreign policy information. Updated daily, DOSFAN includes
Background Notes; Dispatch, the official magazine of U.S.
foreign policy; daily press briefings; Country Commercial Guides;
directories of key officers of foreign service posts; etc. DOSFAN's
World Wide Web site is at http://www.state.gov.
U.S. Foreign Affairs on CD-ROM (USFAC). Published on an
annual basis by the U.S. Department of State, USFAC archives information
on the Department of State Foreign Affairs Network, and includes
an array of official foreign policy information from 1990 to the
present. Contact the Superintendent of Documents, U.S. Government
Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To
order, call (202) 512-1800 or fax (202) 512-2250.
National Trade Data Bank (NTDB). Operated by the U.S. Department
of Commerce, the NTDB contains a wealth of trade-related information,
including Country Commercial Guides. It is available on the Internet
(www.stat-usa.gov) and on
CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.
[end document]
Colombia History
Historical Setting
Colombia Government
Colombia Trade Bureau (PROEXPORT)
Colombia's National Investment Promotion Agency (COINVERTIR)
National Admistrative Department of Statistics (DANE)
The Republic of Colombia Homepage A great source of information
Colombia Business Law
III. CORPORATE STRUCTURE
A. CORPORATIONS
- A corporation must be incorporated and operate with a minimum of five shareholders,
and they are liable up to the amount of their respective contributions,
represented by negotiable shares.
- The direction and administration of corporations is performed through the general
assembly of shareholders, constituted by the shareholders gathered in quorum
as determined by the company's statutes. The general assembly must be held at
least once a year.
- At the time of the incorporation, at least 50 per cent of authorized capital must be
subscribed and at least 33 per cent of subscribed capital must be paid.
- Whenever further capitalization is required a corporation may issue shares or
bonds convertible into shares. Shares sales may be effected at any time, except in
special cases provided for in statutes. New shares may be offered at a price higher
than their face value in order to increase equity.
B. LIMITED COMPANIES
- A limited company may be incorporated and operate with a minimum of two and
a maximum of 25 partners, who are liable only up to the amount of their contributions.
- The direction and administration of the company is performed by the board of
partners, in which partners have as many votes as shares they own.
- The capita l must be paid up completely at the time of incorporation and divide
into shares of the same value, which may be assigned following the conditions
foreseen in the company statutes and in law.
C. BRANCHES OF FOREIGN COMPANIES
- Foreign companies wishing to undertake permanent activities in Colombia must
incorporate a branch in the country.
- To incorporate a branch a notarial office is required in the municipality chosen as
Colombian domicile in the country.
- The incorporation record of the branch must detail the kind of business it wants to
develop in the country, the amount of its authorized capital, and the location of its
main offices in Colombia.
D. OTHER PROCEDURES FOR STARTING UP IN COLOMBIA
Either to set up a branch or to incorporate a company, once the public deed is raised at
the notary’s office, the following procedures apply:
- registration of the deed and documents evidencing accepts of appointments ( as
required) in the mercantile register of the chamber of commerce of the place of
domicile;
- simultaneously, registration of the official books of the organization (minute
books, general ledger, general journal etc.), at the Chamber of Commerce
- application for a tax registration number from the tax authority, DIAN.
- opening of a current account in the company’s name to deposit the foreign capital
contribution;
- registration of the investment at the international technical department of the Central
Bank, within three months of making the investment (exceptionally, extensions
may be requested for up to six months). Portfolio investments must be registered
within thirty days of sale of currency through the exchange market.
- If ownership of an investment, or the destination or receiving company of the investment
funds are changed, this must be registered with the Central Bank.
E. CONSORTIA
- These are temporary associations of two or more individuals or corporations whose
common interest in any one or several activities allows the conjunction of effort
without forming a new corporation.
- Consortium administration is conducted in any manner agreed by the associates.
- The associates are liable jointly and with no limitation for every trading operation
of the consortium and any provision intended to limit this liability will be considered
not to have been written.
- Consortia and temporary associations do not pay income tax, but each corporation
in the consortium is a taxpayer and pays income and complementary taxes in
relation to the portion of its income derived from the project.
Copyright© 1998 COINVERTIR
(Reproduced With Permission)
Commercial Guide of Colombia
Colombia Commercial Guide
Treaties to which Colombia is a Member
The Andean Group
The Group of Three (G3)
Colombia - Chile Free Trade Agreement
Colombia - CARICOM Trade, Economic and Technological Agreement
Colombia - Panama Partial-Scope Agreement
Association of Caribbean States
Colombia - Peru Agreement on Investment (Spanish only)
GATT General Agreement on Tarrifs and Trade, 1947
The Organization of American States
Summary of the WTO
WTOThe official site
SELA - The Latin American Economic System
Economic Commission for Latin America and the Caribbean (a commission of the United Nations)
The United Nations
Colombia Labor Law
In general terms, the Colombian labor law is a flexible regime in aspects
related with
the form and termination of contracts, the determination of the working
day and the payment.
The regime is divided into two main sections, one regulating the relationship
between
employer and employee and the other between employers and unions. Foreign
workers
have the same rights as Colombian workers.
A. CONTRACTS:
The law contains the minimum mandatory rights and guarantees of the
employee.
Therefore, when a contract of employment is made, no stipulations may
be agreed contrary
to these rights and guarantees, and the employee may not waive any benefits
accorded
to him by the law.
1. Types of Contracts:
A contract may be verbal or written - it is recommended that it be written.
By its duration,
it could be :
1) Fixed term contract: the
parties agree the term in advance, with no minimum but with
a maximum of 3 years. It may be renewed any number of times, but the
initial term and
renewals must be expressed in writing.
If 30 days before a contract expires neither party advises the other
in writing of its intention
not to renew, it is understood to be renewed for a time equal to the
initial term.
If the term is less than one year, it may only be renewed for three
equal or lesser periods,
at the end of which renewal may not be for less than one year.
2) Indefinite term: If the parties
do not agree to any fixed term, or the nature of the work
required does not permit any such determination. A verbal contract is
taken to be for
indefinite term.
3) Contract for specific work: the
term is determined by the time required to complete a
specific project or activity.
4) Casual or temporary contract: used
for casual labor or temporary work outside the
normal course of the employer's activities, up to a maximum of one month.
2. TRIAL PERIODS
There is allowance for a trial period of up to two months during which
the employer
gauges the abilities of the employee and the employee assesses the conditions
of work.
The trial period must be expressed in writing, and during it, either
party may terminate
without notice and with no obligation to indemnify the other.
3. TERMINATION
A contract of employment may terminate, for the following reasons, amongst
others:
1. Death of the employee
2. Expiration of the term of contract
3. Completion of the work required
4. Liquidation or closure of the company
5. Suspension of activities by the employer for more than 120 days.
6. Mutual agreement
7. Resignation: the employee may terminate unilaterally by giving 30
days' notice. If that
notice is not given, the employer may deduct the value of the notice
period from benefits
due to the employee at the time of severance.
8. Dismissal with cause under Art. 62 of the Labor Code, invoked by
either party.
If the employer terminates without cause, the employee is entitled to
indemnity, calculated
within the following parameters:
