Venezuelan imports from Colombia up 70% in January-August

Venezuela-Colombia bilateral trade has been reactivated, clearly benefiting Colombian entrepreneurs in view of the rapid rise of sales to Venezuela.

Data handled by the National Administrative Statistics Department of Colombia (DANE) shows that from January though August this year, Venezuela purchased USD 1.77 billion in goods from Colombia, that is, 70% above the figure recorded during the same period in 2011 (USD 1.04 billion).

Meanwhile, Venezuelan exports to Colombia are growing at a much slower pace, reporting only a 12.3% increase from January through August 2012. During said period, Venezuelan sales to Colombia climbed form USD 378 million in 2011 to USD 425 million in 2012.

Over the last five years, Venezuelan-Colombia bilateral trade has been overshadowed by political instability, particularly after Venezuelan President Hugo Chávez and his then counterpart Álvaro Uribe Vélez engaged in a dispute.

Nonetheless, since Colombian President Juan Manuela Santos took office, there have been major efforts to reestablish relations with Venezuela, which continues being a valuable and strategic trade partner that buys Colombia's export products.

In recent weeks, the Governments of Colombia and Venezuela entered the Partial Scope Agreement (AAP) to regulate Colombia-Venezuela bilateral relations. The deal was formalized with the Latin American Integration Association (Aladi). Similarly to the Andean Community of Nations (CAN), under APP, tax reliefs on Venezuelan and Colombian exports will amount to almost 100%.

Translated by Jhean Cabrera