Given the increasingly elusive solution to the tariff crisis that has Colombia and Ecuador at odds, the United States market is presented as the best alternative for Colombian products. The first to increase tariffs to 50% was the government of Ecuador, whose president, Daniel Noboa, stated that his counterpart Gustavo Petro does not do much in the fight against drug trafficking, a problem that affects both countries.
The situation became more complicated this Thursday, when the government of Daniel Noboa announced that, as of May 1, the security tariff on imports from Colombia will be raised from 50% to 100%. The decision is once again based on national security criteria, “after verifying the lack of implementation of concrete and effective measures in matters of border security by Colombia,” says a statement from the Ministry of Production.
So far, attempts by the government of Gustavo Petro to normalize relations have been unsuccessful and, as can be seen, the situation is tending to worsen. Those suffering the consequences are Colombian exporters. At the border, tension is also evident due to the difficulties in the crossing of goods, and for the authorities the stimulus that smuggling is receiving is a matter of concern.
However, as always happens, when one door closes, another opens. An analysis by the Cámara de Comercio Colombo Americana (AmCham Colombia) revealed concrete opportunities so that, in the face of the tariff increase in the Ecuadorian market, Colombian companies that sell products to that country redirect toward the United States part of the exportable supply that currently has the neighboring country as its destination.
Related: Colombia–Ecuador Crisis: Petro Orders Ambassador in Quito to Return.
Colombian products with possibilities in the U. S.
The study found that 1,208 products from the portfolio exported to Ecuador can already be sold in the United States, which makes them immediate candidates for a commercial diversification strategy toward the northern country. These products are part of a basket characterized by having export history, regulatory compliance, and commercial channels already established in the U.S. market.
In this group are mainly, among others, manufactures such as:
• Plastic articles
• Metal office furniture
• Tiles
• Paving slabs
• Plastic bottles
• Polyvinyl chloride
• Bags of ethylene polymers
• Notebooks
• Plastic caps
• Books
There is also space for agroindustrial goods such as (to mention some):
• Confectionery items without cocoa
• Food preparations
• Sugar cane with flavoring
• Coffee extracts and concentrates
• Preparations for animal feed
• Palm oil
• Bakery products
• Margarine
• Chocolates
• Food for cats and dogs
• Sweet biscuits
• Malt beer
• Corn flour
• Preparations for sauces
In the same way, personal care items and industrial inputs stand out such as preparations for eye makeup; hair preparations; beauty preparations for skin care; perfumes and toilet waters; makeup remover wipes; fungicides; insecticides, which allows a viable redirection in the short term (0 to 9 months), taking advantage of existing demand and reducing entry barriers.
Additionally, the study identifies 905 products with feasible potential in the United States, grouped in an alternative basket, which correspond to goods that the U.S. market already imports from other countries, but in which Colombia does not yet have a relevant participation.
In these cases, although there is confirmed demand, their entry requires enabling processes such as certifications, compliance with sanitary and phytosanitary regulations, as well as the development of commercial channels with importers and distributors.
In this classification are products such as electric energy; toothpastes; seamless pipes for casing or production of iron or steel; frozen yellowfin tuna; medicines containing antibiotics; herbicides; chassis for tractors and vehicles; washing machines; soybean oil; live yeasts; medicines containing hormones; mineral or chemical nitrogen fertilizers; methionine, among others.
Although these opportunities represent a clear alternative for export diversification, their materialization is not homogeneous and will depend on factors such as business structure, the strategies of multinational companies established in the country, logistical costs, and the availability of commercial channels. Nevertheless, strengthening these capacities could allow Colombia to consolidate its position in the U.S. market and mitigate the effects of changes in other regional destinations.