China's slowdown highlights the promotion of Colombian products in the US between January and November 2023

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China's slowdown highlights the promotion of Colombian products in the US between January and November 2023

Non-mined energy products derived from agriculture and chemicals are in leading positions in the United States, creating a potential of more than US$3,000 million for Colombian export goods following the Chinese economy and the easing of trade tensions.

Bogota, February 1, 2024. – Given the Chinese slowdown and the low export mobility of that country to the United States, 40 Colombian products managed to increase their sales in the American market in the first eleven months of 2023. These products belong to the 108 items that have been identified with the opportunity. Chamber of Commerce Colombo Americana, AmCham Colombia recorded turnover of US$3,857 million between January and November 2023, an increase of 19% compared to US$3,249 million in the same period of 2022, according to data. US Census Bureau,

“The mobility of 108 products with opportunity represents a favorable scenario for the current trade shifting trends amid US-China tensions. In these commodities, Colombia has a revealed comparative advantage (RCV) of more than 1 over China, making it more competitive and efficient in its production processes. Still, access will depend on joint work between the government and companies,” said Maria Claudia Lacouture, president of AmCham Colomba, the Colombian American Chamber.

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During January and November 2023, a slowdown in the Chinese economy allowed Colombian products to enter the United States. The main sectors are agricultural products, with exports worth US$1,647 million, an increase of 11% compared to US$1,490 in the same period in 2022. This is followed by stones and precious metals, whose sales are up by US$1,403 million. 28% to US$1,098 in the same period in 2022; and chemicals, with shipments of US$64 million, an increase of 128% compared to US$28 million in the same period of 2022.

Among the Colombian products with the greatest growth in the United States following reduced Chinese supplies during the first eleven months of 2023, weeding, gauze and bandages are the leaders, with exports of US$9.3 million (+457%); carboxylic acids, sending US$41.2 million (+135%); and paper and cardboard, with US$18.2 million (+64%). They are followed by cassava and its derivatives, valued at US$10.2 million (+58%); hair preparations, with US$11.6 million (+48%); cane sugar, with US$132 million (+43%); and legumes and vegetable preparations, with US$84 million (+28%), respectively.

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New regional perspective, a reference point

progress of near shore o Trade transfers to Latin America continue to strengthen as U.S. companies evaluate new production options in the region. In connection with this, Mexico managed to become the largest trading partner of the United States in the world with exports of US$438,986 million between January and November 2023 and overtaking China’s leadership of the last 16 years.

Although Mexico’s supplies to the United States reflect a new commercial landscape generated by US-China tensions, Colombian exports compensated for reduced Mexican supplies in 28 of the possible 108 products. This is explained by the low dynamics of the production of precious stones and metals, especially gold, which, according to the statistical office of the said country, INEGI, has decreased by -11.3% in the first nine months of 2023.

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Following lower production from Mexico, the Colombian products whose sales increased on the US market in the first eleven months of 2023 included gold (US$1,403 million); bars, rods and elements for aluminum manufacturing (519 million); palm oil and its fractions (US$37 million); and paper and cardboard (US$18 million), each.

At AmCham Colombia we highlight the importance and opportunities of export diversification that Colombia currently faces in the face of the current trends of changing global trade dynamics, diversification of risks in companies and the search for new competitive suppliers. To achieve this, it will be necessary to take joint action, regardless of the favorable exchange rate, to stimulate investment and move forward on a path to sustainable growth and more formal and quality employment.