Cooperation and Dialogue: Key to a Relationship Spanning Over 200 Years
On January 20, 2025, Donald Trump assumed the presidency of the United States, marking the beginning of a new phase in bilateral relations with Colombia. The relationship between Colombia and the United States has evolved over two centuries, shaped by shared economic interests, security cooperation, and diplomatic engagement. This historic alliance has been instrumental in fostering both nations’ economic growth, trade, investment, and social development.
Colombia has long been a key strategic partner for the United States in Latin America, with both countries working closely on issues ranging from counter-narcotics efforts to regional stability. As the political landscape in the U.S. shifts under the new administration, Colombian policymakers and business leaders are closely monitoring potential changes in economic policies, trade agreements, and security cooperation that could impact the strong bilateral relationship.
Impact of the Free Trade Agreement on Bilateral Trade
Since the Free Trade Agreement (FTA) between Colombia and the United States took effect in 2012, trade between the two nations has grown significantly. The FTA has provided Colombian exporters greater access to the U.S. market, boosting key sectors such as agribusiness, textiles, and mining energy. This has allowed Colombian businesses to become more competitive while simultaneously offering American consumers a diverse range of high-quality products.
As of November 2024, Colombian exports to the U.S. accounted for 29% of the country’s total exports, reaching USD $13.106 billion, according to Fedesarrollo. The primary goods exported include:
- Oil
- Flowers
- Coffee
- Non-monetary gold
- Aluminum
- Fruits
The relationship between Colombia and the United States in trade has also benefited American businesses, as Colombia imports various goods, including machinery, pharmaceuticals, and agricultural products from the U.S. This trade partnership has created jobs and investment opportunities in both countries, further strengthening economic ties.
United States: Colombia’s Leading Trade Partner and Top Investor
The United States remains Colombia’s top investor, representing 42% of total foreign direct investment (FDI). According to data from the Central Bank of Colombia, by the third quarter of 2024, U.S. FDI in Colombia reached USD 4.163 billion out of $9.953 billion. This investment has been directed toward industries such as infrastructure, renewable energy, manufacturing, and technology.
Beyond capital investment, U.S. businesses significantly contribute to Colombia’s job creation and economic development. American companies have generated over 115,000 direct jobs, fostering local employment and contributing to sustainable development. These firms often invest in workforce training and education, enhancing skill development and creating opportunities for professional growth in Colombian industries.
The relationship between Colombia and the United States extends beyond trade and investment. Over the years, both nations have cooperated in security, education, innovation, and environmental protection. Continued collaboration will be essential to maintaining a stable and mutually beneficial partnership as new challenges emerge.
Challenges and Opportunities Under the New U.S. Administration
Despite potential adjustments in trade or investment policies, business dialogue and economic diplomacy will continue to strengthen trust between both nations. Ricardo Triana, Executive Director of CEA Colombia, stated:
“We are convinced that the relationship between Colombia and the United States will continue to be a key pillar for economic development and regional stability. The new administration presents an opportunity to explore new areas of collaboration in sectors such as technology, security, and human development.”
CEA Colombia emphasizes maintaining a predictable and secure business environment to ensure investor confidence and promote sustained economic growth. Colombian business leaders are keen to adapt to changes in U.S. trade policies while seeking new opportunities to diversify exports and attract investment from other global markets.
One key area of focus for the new administration will be security and counter-narcotics efforts. The United States has been a crucial ally in supporting Colombia’s efforts to combat drug trafficking, providing funding and strategic assistance for security initiatives. Continued cooperation in this area will maintain regional stability and protect economic interests.
Global Challenges and the Future of Bilateral Trade
The future of the relationship between Colombia and the United States will depend on how both nations address global challenges, including:
- Security and the fight against drug trafficking – Continued collaboration on security initiatives is critical for maintaining stability and reducing organized crime.
- Migration and border policies – The movement of people between Latin America and the U.S. remains a key issue, with policies affecting both Colombian migrants and U.S. visa holders.
- New international trade dynamics – The global economy is shifting, and both countries must adapt to changing trade policies, supply chain disruptions, and economic competition.
Trade disputes could threaten economic growth, with potential tariffs impacting Colombian exports. If the U.S. imposes 25% or 50% tariffs on certain goods, this could significantly affect Colombia’s economy, increasing costs for businesses and consumers. To counteract these risks, the Colombian government must implement strategies to promote fair and resilient trade policies while fostering stronger relationships with alternative trade partners.
Additionally, Colombia can expand its export markets beyond traditional sectors. Increased investment in technology, clean energy, and digital services could open new doors for Colombian businesses seeking to compete in the global economy. With support from both governments, innovation-driven industries could play a vital role in the country’s long-term economic grow
Strengthening a Strategic Partnership
As Colombia and the United States move forward in this new phase of their bilateral relationship, trust, dialogue, and cooperation will remain the fundamental pillars to ensure sustainable development and mutual benefit. Economic stability and strengthened trade ties will depend on strategic decisions that turn challenges into opportunities, securing a prosperous future for both nations.
Colombia and the United States can continue developing policies encouraging investment, economic growth, and job creation by fostering open communication between policymakers, business leaders, and trade organizations. Their long-standing relationship will remain a cornerstone of regional stability, reinforcing their shared values of democracy, free markets, and economic cooperation.
As global economic and political dynamics continue to evolve, the resilience of the Colombia-U.S. partnership will be tested. However, with proactive strategies and a commitment to collaboration, both nations can ensure that their economic and diplomatic ties remain strong, leading to lasting benefits for both countries’ businesses, workers, and citizens.