Export opportunities abound

Jan. 1, 2020
New markets for automotive and heavy-duty aftermarket products are close at hand in one of the U.S.’s nearest neighbors – Colombia.

New markets for automotive and heavy-duty aftermarket products are close at hand in one of the U.S.’s nearest neighbors – Colombia. This growing Latin American country provides a world of opportunity for motor vehicle part suppliers.

The third most populous Latin American country after Brazil and Mexico, Colombia’s economic growth has outpaced experts’ projections, according to the U.S. State Department Background Report. Its third quarter 2011 GDP growth reached 7.7 percent, outstripping predicted growth of up to 6 percent.

Colombia’s per capita GDP has doubled since 2002, and its unemployment has fallen from 15.7 percent in 2002 to 9.2 percent in 2011. Its development in the last decade can be attributed to an increase in security, resulting in greater foreign investment. The country continues to make progress in improving citizen security and currently plays an active, prominent role in global and regional institutions like the United Nations Security Council (UNSC) and the Union of South American Nations (UNASUR).

In October 2011, the U.S. entered into a trade promotion agreement  (TPA) with Colombia, opening this growing market to more U.S. goods, including automotive and heavy-duty aftermarket products. Under the agreement, more than 80 percent of U.S. exports of consumer and industrial products to Colombia will become duty free immediately, with remaining tariffs phased out over 10 years.

The Colombian automotive market has great potential. In the past decade, Colombia’s passenger car population has increased nearly 13 percent, according to “World Motor Vehicle Market Report 2011,” the annual report published by the Automotive Aftermarket Suppliers Association (AASA) and the AASA Overseas Automotive Council (OAC). World Motor Vehicle Market Report also notes the country’s total vehicle population increased by nearly half a million from 1.6 million in 2007 to 2 million in 2008.

Colombia is the fourth largest vehicle importer in Latin America, after Brazil, Argentina and Chile. Carmakers with Colombian manufacturing facilities include General Motors, Mazda, Mitsubishi, Renault and Toyota.

The automotive sector is Colombia’s fourth most important industry, according to the “Automotive Resource Guide 2010-2011,” published by the U.S. Commercial Service. The United States has traditionally been Colombia’s major supplier of vehicles, automotive parts and accessories. Colombia imported $11.3 billion products from the United States in 2008.

Making in-country contacts is key to success in this new market, so the AASA Overseas Automotive Council will host a trade mission to Bogota, Colombia on Tuesday, June 5, at the Radisson Royal Bogota Hotel.

The OAC event will include one-on-one meetings between suppliers and distributors, a presentation from the U.S. Commercial Service and a customer appreciation reception and dinner. The OAC has secured resources to gather legitimate, qualified Colombian distributors, but interested manufacturers must pre-register. Details are available here http://www.aftermarketsuppliers.org/Councils/OAC/Events/Trade-Mission.

Immediately following the OAC Trade Mission is the Feria Autopartes Medellin trade show, which begins the afternoon of Wednesday, June 6 in Medellin, Colombia. For the past 16 years, the Feria Autopartes Medellin trade show has brought together domestic and international representatives of manufacturers, importers, wholesalers and retailers. It also has expanded in recent years to include automotive maintenance and repair, and transporters.

This is an excellent opportunity to combine the OAC Trade Mission with the trade show to learn more about the aftermarket in Colombia. For more information about the OAC Colombia Trade Mission, visit www.oac-intl.org or click here http://www.aftermarketsuppliers.org/Councils/OAC/Events/Trade-Mission.

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