4 days ago
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Colombia and the United States came backmost from the brink of an all-out commercialized warfare connected Sunday (January 26), aft the South American federation agreed to person deported immigrants connected US subject craft “without regulation oregon delay”, a White House connection said.
Colombian President Gustavo Petro had initially refused to fto the level land, decrying US President Donald Trump’s sweeping actions against amerciable immigrants. He had besides said helium would judge repatriated immigrants connected “civilian planes, without treating them similar criminals”.
However, by precocious Sunday, Petro had overturned his decision, stating that Colombia was acceptable to facilitate the “dignified return” of Colombians.
Trump had threatened excessive tariffs connected Colombian goods implicit Petro’s archetypal stance. Petro had besides warned of retaliatory tariffs connected US goods. However, with Colombia much babelike connected commercialized with the US than vice-versa, Petro would privation to debar a commercialized warfare with Trump. The White House has said that the projected caller tariffs are “fully drafted” and tin inactive beryllium implemented if Colombia does not instrumentality to the agreement.
Let’s instrumentality a look astatine Colombia’s commercialized with the US.
US-Colombia commercialized imbalance
The US forms the largest trading spouse for Colombia, which exports astir of its goods work escaped aft a US-Colombia Trade Promotion Agreement which came into effect successful 2012.
The US imported a whopping $16.1 cardinal worthy of Colombian goods successful 2023, according to US authorities data. However, Colombian commercialized is simply a smaller constituent successful the immense US economy. In 2023, Colombia ranked 26th among countries importing to the US.
The US besides has an implicit $1.5 cardinal commercialized surplus with Colombia.
A look astatine Colombia’s largest exports to the US
According to Reuters, Colombia relied connected entree to the US marketplace for astir a 3rd of its exports oregon astir 4 per cent of its GDP. The largest Colombian exports to the US see crude oil, java and chopped flowers.
Data provided by The Observatory of Economic Complexity, a repository of satellite commercialized data, shows that Colombia’s crude lipid imports to the US amounted to $6.05 cardinal successful the twelvemonth 2022. This made up for conscionable 4 per cent of the full crude lipid imports successful the US. In contrast, Canada and Mexico made up 60 per cent and 10 per cent of crude lipid imports, respectively, that year, per information from the US Energy Information Administration.
Experts, however, person warned that an summation successful tariffs would marque java costlier successful the US. Colombia is the 2nd largest supplier of java to the US, making up 20 per cent of its imports.
Colombia is besides the largest supplier of chopped flowers to the US.
Retaliatory hikes by the Colombian President whitethorn besides wounded companies successful the US, which exported $5.31 cardinal worthy of refined petroleum to the South American federation successful 2022. Those exporting corn, which made up implicit $1 cardinal of full exports from the US to Colombia successful 2022, whitethorn besides consciousness the heat.
Other benefits
The US is the largest concern spouse for Colombia. The US authorities states that astir 450 American businessmen person invested successful projects successful Colombia, particularly successful the manufacturing and mining sectors.
Colombia besides relies heavy connected the remittance inflows from Colombians moving successful the US. Remittance refers to the transportation of wealth from workers to their families backmost home. In 2024, remittances made up 2.4 per cent of Colombia’s GDP. Data provided by the Colombian authorities showed that remittances made up 3.6 per cent of the disposable income of families.
The Migration Data Portal shows that the United States is the largest root of remittances for Colombia. It made up for 30 per cent of remittances, amounting to $3 billion, successful Colombia successful 2023.
Moreover, Colombia besides receives assistance from the US to combat cause trafficking and prolong the influx of Venezuelan refugees.
Tariff menace connected hold
Trump had threatened to hike tariffs by 25 per cent connected Colombian goods, which were to spell up by 50 per cent successful a week.
Trump had besides warned of a question prohibition and visa revocations connected Colombian authorities officials and fiscal sanctions aft Petro refused to fto deported migrants onshore successful Colombia. Petro, too, had announced retaliatory tariffs of 25 per cent connected US imports.
In a station connected X, the Colombian President asserted, “I americium informed that you enforce a 50% tariff connected the fruits of our quality labour to participate the United States, and I bash the same.” Hitting retired astatine Trump, Petro had said, “I don’t shingle hands with achromatic enslaver…”
Hours later, the Colombian authorities issued different statement, saying it had “overcome the impasse” with the US government, and that it would invited the deported Colombians.
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