Colombia is preparing for a takeoff towards the Far East. The recent signing of the Comprehensive Economic Partnership Agreement (Cepa) with the United Arab Emirates opens a framework of possibilities to strengthen the supply chain and expand commercial opportunities, consolidating a milestone in the country's logistics and commercial agenda for the coming years.
The United Arab Emirates (UAE) is made up of a group of seven emirates (similar to monarchies): Abu Dhabi, Ajman, Dubai, Fujairah, Ras el Khaimah, Sharjah and Um el Kaiwain. These are located in the Persian Gulf, in the Middle East, and border with Oman and Saudi Arabia. It is the 28th economy in the world with a GDP of USD $500 billion and in 2023 imports in the United Arab Emirates grew by 3.91% compared to the previous year. Purchases abroad represent 83% of its GDP, a very high proportion compared to that of the rest of the countries, which places it in 181st place out of 193 countries, in the ranking of imports with respect to GDP, ordered from lowest to highest percentage. .
This agreement, the first of its kind with an Arab nation, represents a strategic step for Colombia in accessing a high-income and rapidly growing market.
The United Arab Emirates, with its dynamic economy and privileged geographical position, becomes a key trade partner to diversify Colombian exports and explore new opportunities in various sectors , boosting international logistics and supply chain efficiency.
An agreement to take advantage of bilateral foreign trade opportunities.
The CEPA establishes a favorable framework for commercial exchange between both countries, optimizing logistics and reducing costs associated with the supply chain . 85% of Colombian products that enter the United Arab Emirates will do so without tariffs, eliminating trade barriers and facilitating access to a market of more than 50 million consumers, which translates into greater efficiency in transportation and fluidity in the supply chain.
Opportunities that Boost the Supply Chain Colombia has already begun to reap the fruits of this agreement, boosting the supply chain.
In 2023, trade between both countries amounted to US$329 million, evidencing a potential that can be widely exploited. The greatest opportunities are in the manufacturing and agro-industrial sectors, given that the United Arab Emirates imports an annual average of US$19,000 million from the world in the agricultural and food sector, while Colombia sold non-mining goods for US$34.3 million in 2023. .
Among the Colombian products that already find a space in the United Arab Emirates, the following stand out:
Gold: Colombia, recognized as one of the largest gold producers in the world, will find a receptive market in the United Arab Emirates, optimizing the supply chain of this valuable mineral.
Coffee: The aroma and flavor of Colombian coffee will conquer palates in the Far East, positioning the country as a benchmark in the coffee industry, strengthening the logistics of this emblematic product.
Flowers: The beauty and diversity of Colombian flowers will adorn homes and events in the United Arab Emirates, consolidating the country's presence in this sector, boosting the supply chain of these delicate goods.
Fruits: Mangos, mangosteens, passion fruit and Hass avocado, among other tropical delicacies, will whet the appetite of consumers in the Arab market, optimizing the logistics of these perishable products.
Sweets: Colombian sweets, recognized for their flavor and tradition, will be able to sweeten life in the United Arab Emirates, strengthening the supply chain of this gastronomic industry.
Beef: The quality and flavor of Colombian meat will be appreciated by lovers of haute cuisine in the Arab market, boosting the logistics of this high-value product.
Pumps for liquids: Colombian innovation and technology in the production of pumps for liquids will find a market niche in the United Arab Emirates, optimizing the supply chain of this industrial sector.
A large market for foreign trade
The United Arab Emirates, with an annual import volume of more than US$350 billion, represents an unprecedented opportunity for Colombian companies and for the development of international logistics. The CEPA opens the doors to a market with high demand for goods and services, where Colombia can position itself as a reliable and competitive supplier, strengthening its supply chain and optimizing logistics processes.
Image taken from the newspaper La República https://www.larepublica.co/
A promising future for logistics and foreign trade
The agreement with the United Arab Emirates marks a milestone in Colombia's commercial diversification strategy, boosting logistics and strengthening the supply chain. This new chapter in bilateral relations not only opens the doors to a market with great potential, but also strengthens the country's presence on the international stage, consolidating its position as a relevant player in foreign trade and international logistics.
At Roldán International Freight Solutions we seek to strengthen the export processes of companies in Colombia with strategic markets for the country's international trade, to import and export to countries such as Mexico, Brazil and Peru, Chile in Latin America; Spain and Germany and Italy in Europe.
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