Opportunity and The Three Cs

Luis Germán Restrepo of ProColombia, the Colombian trade association, cites the Trade Promotion Agreement as a major factor in why these numbers are likely to increase in the coming years. “The agreement eliminated over 80 percent of tariffs right away, with the remainder phased out gradually over the next decade.”

Further, he explains, the agreement “has removed artificial barriers to imports and exports, expanded trade significantly between our countries, and promoted economic growth at a time when it is badly needed,” Restrepo adds. “It’s especially important for the agricultural market, as more than half of current exports became duty free immediately, including almost all fruit and vegetable products.”

Andres Galvis, president of Garden Herbs, knows these products well. His is one of the largest growers and packers of fresh-cut flowers, herbs, and produce for export in Colombia, and he has seen immediate results from the trade agreement. “The agreement had an almost instant effect on our ability to export products to the United States. We’ve seen the value of fruit exports in Colombia more than triple from 2012 to 2016,” he says.

Climate and commodities
Colombia’s climate is ideal for fruit production, especially during the North American off-season, for which demand is constantly increasing in the United States. And while the backbone of the export trade has always been bananas and plantains, other fruits are gaining ground each year, especially avocados, Persian limes, and passion fruit. “There are few countries on Earth that have the range and quality of fruits and vegetables that Colombia can offer,” shares Galvis.

Costa Rica
Tucked away in the middle of Central America, Costa Rica is a small country, taking up only 19,653 square miles and acting as home to just over 4.5 million people. Despite its size, though, it is growing into one of Central America’s most dynamic economies.

Economic growth
One of the few success stories in a region with a history of turmoil, Costa Rica’s economy has grown steadily since the 1980s—due in large part to the country’s tendency to welcome outside investment, lean towards trade liberalization, and promote highly progressive environmental laws. The latter have protected Costa Rica’s agricultural production while allowing for expansion and diversification into other areas such as tourism, services, finance, and pharmaceuticals.

Considered one of the greenest countries on the planet, it has pioneered ecological protection and development to promote biodiversity and conservation, and is the only country in the world to reverse the deforestation that plagues so many tropical nations. Costa Rica also managed to ride out the global recession of 2008 with relative comfort, and if it continues on its current path, is likely to become a powerhouse within the region.