1.Goverment regulations or deregulations.

 

The report Regulatory Policy: Colombia - Going Beyond Administrative Simplification was launched in Bogota on 25 October 2013. Prudent macroeconomic management and recent structural reforms have helped Colombia weather the recent financial crisis remarkably well.

 

The Government of Colombia has placed particular emphasis on simplifying formalities affecting business and citizens. In addition, a number of initiatives has been launched to make the administration more transparent and accountable vis-à-vis citizens. However, after several years in place, this approach needs to be re-shaped in order to go deeper into the legal background of regulations.

 

The review recommends Colombia to develop a whole-of-government policy for regulatory quality and to rethink the institutional set-up to implement different regulatory tools in a coherent manner.  It also suggests the adoption of a systemic approach to challenge the reasons for and the logic behind formalities (trámites) and, most importantly, regulations. The event in Bogota also served as a platform to launch Colombia's accession process to the OECD.

 

“is the ​law that ​controls the way that a ​business can ​operate, or all of these ​laws considered together by the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.”

 

http://smallbusiness.chron.com/five-areas-government-regulation-business-701.html

http://www.oecd.org/countries/colombia/regulatory-policy-colombia.htm

 

2.Changes in tax laws

 

On 23 December 2014, Colombia's president signed and published a new tax reform bill amending the Colombian Tax Statute.The tax reform creates a new wealth tax. Under general terms, all individuals and legal entities in Colombia, who are deemed income taxpayers, including nonresidents (not expressly excluded by the law to pay this tax) are subject to this tax, provided their tax net equity (gross assets minus debts) as of 1 January 2015, is greater than COP 1,000,000,000 (approx. USD 388,800). In addition, unliquidated inheritances also are subject to this tax if the tax net equity threshold is met.

 

In accordance with the wording of the rule, those that do not meet the tax net equity threshold as of 1 January 2015, or are not considered income taxpayers, are not subject to the tax for 2015, 2016, and 2017 for corporations. Individuals also will not be subject to the tax for an additional year (2018). Portfolio foreign capital Investors and entities under a liquidation process, forced administrative liquidation, mandatory liquidation or which had entered into a restructuring agreement or those under an insolvency regime are not subject to this new tax.

 

For foreign nonresidents, the tax will be assessed on their equity held in Colombia directly or indirectly through branches and permanent establishments (PE) located in Colombia. Likewise, unliquidated inheritances of nonresidents in Colombia shall only be taxed on equity held in Colombia.

 

The entities conducting a spin off after December 23, 2014 and on or before 1 January 2015, will have to add the equity of the split entities to their own equity for 1 January 2015 (the accrual date). Likewise, individuals and legal entities that incorporate entities during the same period mentioned will have to add to their own equity to the incorporated entities equity in accordance with their participation in such vehicles.

 

The taxable basis will accrue (also for accounting purposes as expressed by the law) annually on 1 January 2015, 2016 and 2017 for corporations and 1 January 2015, 2016, 2017 and 2018 for individuals and unliquidated inheritances.

The taxable basis is the gross equity minus debts as of each year. The reform protects the taxable basis from potential fluctuations of the equity (increase/decrease). The reform includes a limitation that assumes a formula with reference to the taxable basis as of 1 January 2015.

 

When the taxable basis is higher in 2016, 2017 and 2018 (the last year applicable only for individuals and unliquidated inheritances), the lesser value between the taxable basis determined for the current year and the taxable basis assessed for 2015 with a 25% inflation increase, certified by (National Planning Department (DANE acronym in Spanish) for the previous year, will be the taxable basis.

 

Minimum presumptive tax

 

CIT payers are required to pay a minimum amount of income tax, which is determined based on the so-called presumptive income method. Under this method, presumptive taxable income is measured as 3% of net assets (or tax equity) as of 31 December of the prior tax year as reported by the taxpayer on the corresponding CIT return. The CIT rate is then applied to the greater of regular

Taxable income (revenue less allowable costs and expenses) or presumptive taxable income (exempting certain business activities).

 

In order to determine the taxable base for presumptive income purposes, it is necessary to subtract from the total amount of net assets, which is the base to calculate presumptive income, the following amounts (selection):

 

• The net asset value of the shares owned in national companies.

• The net asset value of the assets affected by force majeure.

• The net asset value of assets associated with operations in unproductive periods.

Each year, taxpayers must compare the value resulting from the application of the foregoing two systems. The income tax for the taxable year will be calculated on the higher value resulting from this comparison. If presumptive income is higher than the ordinary net income, the difference constitutes an excess of presumptive income, which can be carried forward (adjusted for inflation) to any of the following five taxable years and offset against the net income determined by the taxpayer.

Income tax for equality (CREE)

From 2013 on, 25% rate CIT payers are liable for an additional 9% CREE. Collections will be used to fund cuts on payroll taxes as well as health contributions to the social security system, which 25% rate CIT payers will enjoy on select headcount.

Structurally, the CREE works as an income tax.

Qualified 15% rate FTZ users existing as of 31 December 2012 are grandfathered, as well as those in the process of being qualified. This means that 15% rate CIT payers (FTZ users), and other entities that at  January 1, 2013 had already commenced the process of qualification as FTZ users, should continue to have the same tax rate.

The taxable basis will generally be calculated as revenue (excluding capital gains) minus the following:

• Rebates, discounts, and returns.

• Non-taxed revenue.

• Allowable costs and expenses.

• Select exempt income from Andean Tax Treaty countries and others.

 

For years 2015 and beyond, tax loss and presumptive taxable carryforward are eligible to offset the taxable amount, although the potential impact on deferred assets for tax loss needs to be considered. CREE presumptive taxable income carryforwards incurred beginning from 2015 will be eligible for offset against CREE taxable income over a five-year period-

 

Please be aware that in no case can the taxable amount be lower than 3% of the taxpayer’s net equity as of the end of the last year (i.e. the same system is in place as for the income tax, where even loss-making taxpayers may be subject to liability). It is worth mentioning that the liability for this tax will be used to determine the amount of foreign tax credit that may be claimed by a resident.

 

All taxpayers are required to act as self-withholding agents on taxable income, at a rate that depends on their main activity of business.

 

http://www.ey.com/GL/en/Services/Tax/International-Tax/Alert--Colombia-enacts-tax-reform

http://taxsummaries.pwc.com/uk/taxsummaries/wwts.nsf/ID/Colombia-Corporate-Taxes-on-corporate-income

 

3.Special Tariffs

 

Special tariff occur with several countries. Colombia in this matter has one of the biggest allies in the world, the USA. Not only has the country had spcial ties with the American government but also opening its door both in Europe and Asia. While free trade treatees are starting to have a better effect on Colombias economy, it seems that we are still on the loosing side. When negiciating with countries that have a better development rate than us, we are under their conditions. When Colombians export their products to some of this counties, most of the products that we have here have to pay tariffs to enter other markets. The FMT with these countries are reducing those tariffs by the passing year, but it is still a slow process that we need to overcome with patience if we want to achieve higher levels of development.

 

https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Colombia.pdf

 

4.Political action committees

 

From October 1-6, 2015 the Coalition of Black Trade Unionist (CBTU) organized a delegation to Colombia in order to find out the state of affairs with regards to Afro-Colombian communities’ labor, civil, political and human rights. The CBTU decided to visit Colombia at 2 the request of the Afro-Colombian Peace Council (CONPA)i . A CONPA delegation participated in the CBTU annual conference in May 2015 in Chicago, Illinois. The Colombia trip was led by Representative Hank Johnson (Democrat for Georgia’s 4th District since 2007), a longtime advocate for Afro-Colombian communities’ human and labor rights and a member of the U.S. Congressional Monitoring Group on Labor Rights. U.S. trade unionists and activistsii joined Mr. Johnson. The CONPA organized the agenda that included visits to Cali, Quibdó and Bogota with the support of the Washington Office on Latin America (WOLA). Summary of Findings *Four years after the U.S.-Colombia Labor Action Plan (LAP) was signed in 2011, violence and death threats against trade unionists continue at a steady pace and impunity for these crimes remains the norm.

 

According to the most recent report of the Escuela Nacional Sindical (ENS), dated April 4, 2015, Colombian workers have endured more than 1,933 threats and acts of violence, including 105 assassinations of union activists and 1,337 death threats. As we learned during our visit, these figures most likely underreport violent acts against trade unionists. *While the LAP purports to end subcontracting used to undermine

 

 

http://www.usw.org/act/activism/civil-rights/resources/FINALCBTUdelreport.pdf

 

The previous article explains how our industry can not only have some favorable PAC on its favor but also in the growing service industry, we can give out a helping hand to those people in need of work. Moreover, this year can be a good time to start working on these issues since the economic condidions seem to be on the companys favor. Having a plan of stability in the country is of utmost importance since the lack of work, flow of economic monetary units and the ever growing needs in everyones life, need to be aken care of fast and efectivly to counter the social problems that the cities in Colombia suffer from every day.  

 

http://www.idea.int/es/vt/countryview.cfm?id=

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.Number, Severity, and location of government protests

 

Protest against the government have been throught the past several year very recurrent. It seems that the country has still much to fix to have an important part of the population calm. Colombia is a place were inequality is what motivates protests the most.

 

Bogota being the place were our operations will work, is a very unsable city since people have been protesting more over the past few months against some policies stablished since the past government and are now looking to show their inconformity to the current administration. Unfurtunatly this year has started really bad since the first public transport protest which ended with serveral inyured and a lot of public property damage. This kind of manifestations are normally done in mayor streets, were traffic if the main victim if thing don’t go for the worst. These protest are quite severe since there normally ends up being damsage to someone or something.

 

http://www.eltiempo.com/bogota/bloqueos-portal-americas-tintal-y-banderas-de-transmilenio/16506152

 

 

7.Number of Patents

 

The company has patented two kinds of services. The first one is the house maid service, which is focused on cleaning and cooking mostly. The second service we provide if the babysitter service which consists mostly one taking care of children, although not limited to that. For the companies purpose, we have decided to have services that can be very similar between them yet being able to assist in two different kind of situations.

 

Acourding to the Superintendentof industry and tradepatent database of Colombia, 2425 patents were registered just last year. This years only 23 have been registered up until now and it is likely to be a lower number in contrast with 2015.

 

http://serviciospub.sic.gov.co/~oparra/serv_57/externas/datospatente.php

 

 

8.Changes in Patent Laws

 

Patent laws in Colombia don’t have high changing rate. The main laws in this matter, are revised and updated every five to ten years.  Although there are more than just the main laws, there are also decrees and other minor laws that are more specific in certain areas, that are update every one to three years. Most of this laws only appear to regulate new markets mostly, and are rarely changed in essence.

 

http://www.wipo.int/wipolex/en/profile.jsp?code=co  

 

9.Environmental protection laws

 

Under the Colombian law, the environmental basic statute is contained in Decree 28811 of 1974 together with its regulations. In addition and among others, the environmental regulations are Law 99 of 1993, Law 1124 of 2007, Decree 1715 of 1978, Resolution 1555 of 2005, Decree 1541 of 1978, Decree 2858 of 1981, Decree 948 of 1996, Decree 979 of 2006, Decree 1713 of 2002, Law 165 of 1994, Law 740 of 2002, Decree 1909 of 2000, Decree 1608 of 1978, Law 357 of 1997, Decree 1604 of 2002, Decree 1729 of 2002, Law 253 of 1996, Law 439 of 1998, Resolution 1023 of 2005, Law 30 of 1990, Law 29 of 1992, Law 618 of 2000, Law 511 of 1999, Law 472 of 1998, Law 393 of 1997 and Law 1333 of 2009.

 

On 21 July 2009, Law 1333 was enacted by virtue of which the new environmental penalty procedure was established. In accordance with this regulation the non-compliance with environmental regulations may bring forth against the violator the imposition of daily fines of up to 5,000 minimum legal monthly wages in force equivalent to US$1,245 million. In addition, other type of penalties are contemplated such as the revocation or caducity of the environmental license, authorization, concession, permit or registration; the demolition of the works borne by the infringer; the seizure of goods used for the breaching, the restitution of the extracted wild flora and fauna specimens; or community work. Moreover, it must be provided that the criminal code indicates imprisonment penalties in case there is an action that affects the environment and natural resources typified as offences, which may in some cases go up to 10 years in prison.

 

Law 99 of 1993 provides the "Natural Reserves of the Civil Population" through which a part or all of a real estate that keeps a sample of a natural ecosystem and is managed under the sustainability principles for the use of natural resources and the activities of which are submitted to the applicable regulations may be constituted as such, provided that there is participation of environmental organization without aim for profit. This way private land areas may be protected in order to preserve the environment and natural resources. The Colombian government may declare protected areas in private property.

accordance with the Colombian regulation, the main regulations concerning fauna and flora is contained in the Natural Resources Code and the Agreement about Biological Diversity entered into in Rio de Janeiro on 5 June 1992, within the framework of the Rio Convention. In addition, there are other important regulations on the matter such as the Cartagena Protocol on Biotechnology Security of the Agreement about Biological Diversity entered into in Montreal on 29 January 2000, and the Convention on International Trade of Threatened Wild Fauna and Flora Species (CITES). The endangered species are protected by the environmental and criminal law. In particular the commerce, transportation, exploitation, and other activities related to endangered species without the fulfilment of law may cause to the responsible fines and deprivation of liberty.

 

Under applicable regulations, particularly Law 1333 of 2009, the types of liability derived from affecting the environment, natural resources, human health and landscape consist of environmental administrative liability, extra-contractual civil liability, contractual civil liability (torts) and environmental criminal liability. In case of public officers liability may include disciplinary and monetary sanctions.

The judiciary responsibility in the protection of the environment is represented in the authority of the courts to decide on popular actions and group actions whereby the collective right to enjoy a healthy environment is protected. Likewise, from the constitutional jurisdiction viewpoint, special relevance is acquired upon deciding on actions for the protection of human rights seeking to protect the environment and natural resources in cases closely related with the violation of one or several of the fundamental rights also known as first generation rights. As an example different companies entrusted in oil exploration and exploitation activities have been called to trial for oil spills that have affected the environment and natural resources. Last year a criminal judge condemns some citizens to jail because he did find that those citizens were responsible for the contamination of a water corp.

 

In Colombia, the Environmental National System (SINA) was created to establish the administration of the environmental issues of the country. SINA includes a set of orientations, regulations, activities, resources, programmers and institutions through which the National Environmental Management is executed. Important public entities take part in SINA, such as the Ministry of the Environment, Household and Territorial Development, the National Planning Department, Regional Autonomous Corporations, scientific research institutes, control entities as the General Comptrollership of the Republic, local environmental authorities, the community, and non-governmental organizations.

The Ministry of the Environment, Household and Territorial Development is the entity entrusted with the direction of SINA and environmental and natural resources management.

 

Such entities, in particular the Regional Autonomous Corporations, are entrusted with the execution of environmental policies, plans and programmers established at a national level. In addition, these entities may establish in exercise of the subsidiary rigorous principle environmental regulations stricter than national regulations. Furthermore, they are entrusted with the environmental control and follow-up of actions filed by citizens, companies and state entities.

“Having clear that the most important thing is the environment and the way we are going to respect it and conserved it, its our obligation, here we exposed the laws, norms and policies that must be followed in case that there some unagremment”

 

 

http://www.upme.gov.co/guia_ambiental/carbon/gestion/politica/normativ/normativ.htm

 http://www.ecoplanet-f.org/?gclid=CKfpwO2y98oCFU1bhgodn0MPmg

http://latinlawyer.com/reference/article/27273/colombia/

 

 

10.Level of defense expenditures

 

Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.)

 

 

 

http://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS

 

 

11. Legislation on equal employment.

 

I. Laws Prohibiting Discrimination

Articles 13 and 53 of the Colombian Political Constitution (“Constitution”) and various provisions of the Colombian Labor Code (“Labor Code”) strictly prohibit discrimination in the workplace. Additionally, Article 10 of the Labor Code requires that every employee be provided with the same legal rights. Discrimination includes an employer’s failure to hire and failure to provide equal terms and conditions of employment based upon an employee belonging to a particular protected classification including the following:

 

• Gender;

• Sexual orientation;

• Race;

• National and family origin;

• Language;

• Religion;

• Political or philosophical opinion;

• Military status

• Disability.

Although the Constitution does not expressly prohibit age discrimination, Labor Law 931, issued in 2004, does. Labor Law 931 also expressly prohibits any employer from requesting the particular age or age range of job applicants and imposes hefty fines against employers who violate the law.

 

II. Laws Prohibiting Harassment

In Colombia, pursuant to The Work Harassment Law 1010 of 2006, harassment based upon a protected category is also prohibited. “Harassment” is defined as the persistent and demonstrable conduct taken against an employee by a supervisor or co-worker with the intent of causing the employee intimidation, fear or inducing the employee to resign. Harassment also includes conduct which offends or threatens an employee’s dignity or sexual freedom. Colombian Labor Law requires that every employer maintain both preventative and corrective measures against harassment.

III. Remedies Available to Employees for Unlawful Discrimination and Harassment
An employee may commence administrative or judicial labor actions for unlawful discrimination and harassment.    

 

A prevailing employee may be entitled to the following legal remedies:

 

(1) Reinstatement in the cases of unlawful termination
(2) granting of equal terms and conditions of employment
(3) and monetary damages.

Additionally, employers found liable for harassment can be fined pursuant to Colombian’s Disciplinary Code.

“in colombia there are some rights for people to apply for a job, some standars, age and experience. There are some legal regulation states the prohibition of all forms of discrimination based on gender, gender identity and sexual orientation.

 

 

http://www.crossborderemployer.com/post/2015/06/08/Employment-Law-in-Colombia-Part-II.aspx

http://www.doingbusiness.org/data/exploreeconomies/colombia/labor-market-regulation

 

 

12.Level of government subsidies.

 

 

Domiciliary public utility services in Colombia have a cross subsidy system which charges subsidized rates to the households who live in houses located in strata associated to low wealth levels, and taxed rates to the better off. We assesses the hypothesis that the flow of subsidies that potentially come from a particular house, are discounted by housing market agents so that most of them are transferred to the prices of the houses that generate the subsidies. By estimating a hedonic prices model applying a regression discontinuity approach, we find that the increment in house value estimated because of subsidies is similar in magnitude to the present value of the flow of subsidies. Likely effects are found on the rent amount. We conclude that subsidies to the poor population through public spending in domiciliary public utility services in Colombia is being achieved, if anything, in a very limited way. Most of the financial effort on this subject ends up distorting housing relative prices according to socioeconomic strata, with an annual cost of up to 0.7% of GDP in supposed gross subsidies to domiciliary public utility services.

 

The value for Subsidies and other transfers (current LCU) in Colombia was 85,474,600,000,000 as of 2012. As the graph below shows, over the past 9 years this indicator reached a maximum value of 85,474,600,000,000 in 2012 and a minimum value of 30,984,700,000,000 in 2003.

 

Definition: Subsidies, grants, and other social benefits include all unrequited, no repayable transfers on current account to private and public enterprises; grants to foreign governments, international organizations, and other government units; and social security, social assistance benefits, and employer social benefits in cash and in kind

Subsidies and other transfers (% of expense) in Colombia was 51.23 as of 2012. Its highest value over the past 9 years was 51.23 in 2012, while its lowest value was 34.88 in 2011.

 

Definition: Subsidies, grants, and other social benefits include all unrequited, nonrepayable transfers on current account to private and public enterprises; grants to foreign governments, international organizations, and other government units; and social security, social assistance benefits, and employer social benefits in cash and in kind.

“Government is the one who gives the subsidiaries to people who really needs it, this are some costs to the government, when assessing the effects of this subsidies the effect of these government strategies would benefit us, as they could be intended to promote employment and industry development.

 

http://www.indexmundi.com/facts/colombia/subsidies-and-other-transfers  las dos tablas
http://www.banrep.gov.co/en/borrador-422

 

 

13.Antitrust Legislation

 

 

In recent years, the Santos administration has dedicated significant resources and devoted restructuring initiatives to enhance and intensify the competition law enforcement in Colombia. These efforts largely follow suggestions made by the OECD and the IDB in 2009, as well as additional notes in the Colombia Report of the OECD published in 2013 related to the enhancement of Colombia’s competition policy and its application.

 

In 2009, the Colombian Competition Regulator (SIC) celebrated the 50th anniversary of the enactment of the competition statute in Colombia.1 A Commission comprising the OECD and the IDB (the Commission), led by a former Argentinian regulator, presented a report on Colombian competition law and policy. 

 

Although the report recognised several strengths of the Colombian competition regime, the Commission made a number of recommendations to improve the existing framework. Many of the suggestions were directed at increasing enforcement and enhancing certain procedures to make the competition rules more efficient. Some of these had been already adopted by Law 1340 of 2009, enacted in July 2009.

 

However, the increased powers and functions assigned to the SIC by Law 1340 of 2009 prompted the need to devote significant resources to the agency’s competition division and to increase the number of staff dedicated to competition law enforcement. Echoing the Commission’s suggestions and the challenges arising from the new legal structure, the Colombian Development Plan for 2010–2014 of the Santos administration urged for the allocation of new funds for the SIC so that it could adequately undertake the additional functions assigned to it under the new Law as the Colombian Competition Regulator.

 

A year later, the Ministry of Tourism, Industry and Commerce restructured the SIC.4 In addition to gaining new specific powers, the SIC received an important increase in its budget (almost triple that of 2011 to approximately US$64 million in 2014) and an expansion of its manpower. Since 2008, the competition staff has nearly doubled. The Law also invested the SIC with powers to impose fines 50 times higher than the cap allowed by the previous statute.

 

With these new powers, a larger budget and increased staff, the SIC was in the spotlight to show that it was ready to intensify the results in the civil prosecution of offenders of the competition rules.

 

http://globalcompetitionreview.com/reviews/74/sections/279/chapters/3003/colombia-overview/

 

 

14.Sino/American relationships

 

There is no better time than now for the United States to propose Sino-American strategic restraint. Chinese political leaders may be reluctant, especially given their military’s focus on antisatellite and cyber war as ways of neutralizing U.S. conventional advantages. Nevertheless, by laying out an integrated approach to mitigating strategic dangers and pursuing it patiently but persistently, the United States can convince China that growing mutual vulnerability demands mutual restraint.

 

The United States is a superpower, and China is becoming one. But this does not make cold war, much less hot war, inevitable. Rather, it gives both a special responsibility to manage judiciously their power to cause grave harm not only to each other but also to the region and the world.

 

http://nationalinterest.org/commentary/the-future-sino-american-relations-6358

 

 

15.Russian-American Relationships

 

For more than 200 years, Russia and the United States have shared a multi-faceted diplomatic relationship, at one point even sharing a land border when Russia had a settlement at Fort Ross, California.

 

Over this period, the two countries have competed for political and economic influence, and cooperated to meet mutual global challenges. In 2007, private and government organizations in the United States and Russia mark the bicentennial of diplomatic relations with events that illustrate the depth and history of the relationship.

Russia's sale of Alaska to the U.S.

 

Government in the mid-19th century marked an active period that included commercial joint ventures and Russian support for the United States during the American Civil War. The early 20th century saw sometimes tense relations, but our countries continued to talk and, at times, cooperate. Although the United States did not recognize the Soviet Union until 1933, we provided humanitarian assistance to the victims of the 1921-1923 famine.

 

Despite our differences, the Soviets and the Americans united against a common enemy during World War II, and the Soviet Union participated in the Lend-Lease program under which the United States provided the Allies with supplies. That period ended with the onset of the Cold War, as our military alliances opposed each other in Europe and across the globe. Nevertheless, cultural, sports, scientific, and educational exchanges, and summits that led to important arms control treaties, kept the lines of communication open. U.S. and Soviet astronauts even ventured into space together in the 1975 Apollo-Soyuz mission.

 

After the break-up of the Soviet Union in 1991 and the end of the Cold War, the U.S.-Russian relationship took on a new dimension, and contacts between our citizens expanded rapidly in number and diversity. Russians and Americans work together on a daily basis, both bilaterally and multilaterally, in a wide range of areas, including combating the threats of terrorism, nuclear arms proliferation, HIV/AIDS and other infectious diseases, and other global challenges. Not surprisingly, there remain issues on which our two governments do not agree. Even after 200 years, our relations continue to evolve in both expected and unexpected ways.

 

http://www.state.gov/p/eur/ci/rs/200years/

 

Russian Foreign Minister Sergei Lavrov and his Colombian counterpart, Maria Angela Holguin, agreed to strengthen their trade relations in a meeting both held on Tuesday, as part of the tour of the Russian minister for Latin America.

During the meeting, Lavrov and Holguin reviewed the agenda of Colombian exports to Russia, so the Colombian Foreign Minister expressed the readiness of his country to expand business opportunities.
“We want to expand that market (Russian) and we can work together in different opportunities. We all all work done, but also the commitment of wanting to improve trade relations,” Holguin said after the meeting in Bogota (capital).

Holguin stressed that the Andean nation has a large potential for trade with Russian companies, especially in the field of construction, cites EFE.

 

Both countries have strong cultural ties, recalled the Colombian Foreign Minister, and in turn recalled the great experience that leads Russia to Bogota theater scene this season.

Lavrov arrived on Monday to Bogota from Cuba to also meet briefly with Colombian President Juan Manuel Santos, who expressed support for the peace process that develops in Havana with the Revolutionary Armed Army Colombia People’s Forces (FARC -EP), then leave for Nicaragua and continue your visit in Guatemala.

 

Russian Foreign Minister emphasized that want to deepen bilateral relations with Colombia this year, the 80th anniversary since its establishment is fulfilled, and highlighted the steps in the framework of the Intergovernmental Commission on Economic and Trade Cooperation.”It is very important to promote and encourage direct contacts between the business communities of both countries,” Lavrov on this issue.

 

In that regard, he appreciated the efforts of the Chamber of Commerce and Industry of Russia and the Colombo-Russian Chamber of Commerce and recalled that during the last visit of Holguin to Moscow, signed a program of cultural, educational and sports exchanges that Tuesday agreed to extend.

Conflict in Ukraine
Moreover, Lavrov appreciated Colombia’s position regarding the armed conflict in Ukraine, despite having good relations with the US government, that promotes violence in the east, to assist the Government of Kiev with weapons and artillery defense.

 

“We appreciate the balanced position of Colombia in relation to the Ukrainian crisis,” the Russian minister, who then added, “could now spell our partners our assessment in this regard,” TASS quotes.

 

Colombia–Russia relations refers to the bilateral  and foreign relations between Colombia and Russia.

Diplomatic relations between Colombia and the USSR were established for the first time on June 25, 1935 (then severed on May 3, 1948, and restored back to normal on January 19, 1968).

 

Colombia has an embassy in Moscow andRussia has an embassy in Bogotá.

 

On October 3, 2008, Colombia, considered one of the closest U.

S. allies in Latin America, sent its defense minister to Russia for the first time to discuss signing a new military cooperation accord.

 

Defense minister (and future president) Juan Manuel Santos arrived in Russia on Oct. 6 to attend an Interpol police conference and meet with his Russian counterpart Anatoly Serdyukov, along with Colombia's Ambassador to Russia, Diego José Tobón Echeverri.

 

Alquin "is the first Colombian defense minister to make an official visit to Russia, which is of major significance for relations between the two countries", the Colombian presidency said on its web site.

 

Talks focused on cooperation in fighting the drugs trade, terrorism and a new defense accord, it said.

Colombian Vice-President Francisco Santos said during a visit to Russia in June that his country wants to buy fighter and transport helicopters and radar systems as it broadens its sources of defense equipment.

 

The defense minister will attend a demonstration of Russian weaponry during his week-long visit, the presidency in Bogota said.

Colombia's efforts to court Russia came after it voiced concerns about billions of dollars in Russian arms sales to neighboring Venezuela, where President Hugo Chávez proclaimed a goal of countering U.S. influence in Latin America and was accused by Colombia of arming FARC rebels. [On November 1, 2013, the Colombian Air Force intercepted two Tu-160s of the Russian Air Force that were flying over Colombian airspace without previous governmental clearance.

The two blackjacks, as code named by the NATO, were escorted out of Colombian airspace soon after and a note of protest was sent by the Ministry of Foreign Affairs of Colombia to Moscow.

 

http://lainfo.es/en/2015/03/25/russia-and-colombia-interested-in-expanding-trade-relations/

http://www.cardkiwi.com/Russia%20-%20Colombia%20relations

 

 

16.European-COLOMBIAN Relationships

 

EU Relations with Republic of Colombia.

Colombia is a dynamic and open economy, of growing regional importance and a principal partner for the EU in Latin America. EU-Colombia relations are underpinned by EU economic and development cooperation, the priorities of which are:

• peace, stability and alternative development

• justice and human rights

• trade and competitiveness.

•  

The EU’s relations with Colombia are built on political dialogue, trade, and development cooperation, and cover a wide range of bilateral, regional and multilateral issues, whilst also helping to address the legacies of its internal armed conflict.

Political and policy dialogue is based on the 1996 Rome Declaration , and a 2009 Memorandum of Understanding . The political dialogue is strengthened and institutionalised through the Political and Cooperation Agreement  between the EU and the Andean Community, which is implemented through high-level political and sectoral dialogue meetings at regional or bilateral level.

 

Colombia is the EU’s fourth most important economic partner in the region, with a trade volume of €11.884 billion. The EU is Colombia's second biggest trading partner. Trade and investment , already burgeoning, will be encouraged through further mutual market opening under a trade agreement between the EU and Colombia (and Peru), initialled in 2011 and to be applied soon.

 

A bilateral human rights dialogue complements relations between the EU and Colombia.

 

http://www.euractiv.com/section/global-europe/opinion/colombia-and-the-eu-agreement-is-a-step-forward/

http://eeas.europa.eu/colombia/index_en.ht

 

17. African-COLOMBIAN Relationships

 

The 2004-2014 decade was particularly good for African economies. Moreover, after the crisis of 2008, the International Financial Institutions (IFIs), the various European governments and emerging investors paid tribute to the 'resilience' of African economies. An increase of 4.6 percent of GDP in 2014, Africa was among the most dynamic economic blocs in the world. However, June was more difficult. The International Monetary Fund (IMF) and World Bank (WB) published its outlook for 2015 and a word can be highlighted: 'fragility'. Despite the good results, fears of foreign investors resurfaced.

 

According to the World Bank, the African Growth forecasts GDP went from 4.9 to 4.2 percent within 12 months. What causes concern is the transformative capacity of African economies, namely, the ability to move from an economy of productive income, in short, nothing new. The need to change the way of producing wealth remains the main challenge for Africans. At the macroeconomic level, the exploitation of natural resources and the sale of primary products are the basis of that rentier model. In 2015, some African economies still suffer from this dependence on exports. According to the WB, the falling price of black gold, Algerian GDP growth will increase from 4.1 percent in 2014 to 2.6 percent this year. Including South Africa, in recent months, all African commodity producers have had to 'hold'. However, unlike the image traditionally accepted, African rentiers are few. The idea that income is the dominant economic model in Africa, depends on some particular historical situations, especially the dominance of the state in the economy. It is true that the state is set as the main operator who organizes and distributes wealth in African countries. In the eyes of many, this situation explains the poor African capacity to leave behind the rentier model.

 

In general, the 'rent economy' is critical for both economic reasons, because it creates little added value, as ethical, because it encourages corruption and limits taking initiatives. But, although not the most efficient economic model, it is not true that limit the 'entrepreneurial spirit'. As in many other 'less advanced' economies, micro- enterprises (fewer than four employees) is the lifeblood of African economies. Thus, in a situation of adversity markets 'commodities', we should note the important role of the African manufacturing sector in maintaining relatively high growth rates. Next to microenterprises, SMEs and African multinational also highlighted. One difference with the greatest impact in relation to the last century is that many multinationals operating in the continent are in the hands of Africans. Alongside the US, European, Chinese and Brazilian multinationals traditional, new African names are shaping the continent's economies. All Africans know the South African multinational MTN Group, or the names of Patrice Motsepe, with African Rainbow Minerals in South Africa, or Aliko Dangote, with Dangote Cement in Nigeria. These names are changing African economies from within. You are not alone and are more and more. Between 2003 and 2015, according to Forbes magazine, the number of African billionaires went from 2-29, and the act is felt more often.

 

The recently expressed concern that the IFI was predictable. Clearly, the rise in prices of raw materials and the relative isolation of the African financial market in the world financial market, during the financial crisis of 2008, explained, better than the industrial dynamism, sustained growth in the last decade. However, now that prices for raw materials are falling and that the spectrum of the crisis is fading, internal factors become more important.

 

Which show the latest figures from the crash BM is expected by many did not occur. With a projected growth of 4.2 percent for 2015, the African continent continues to have a remarkable dynamism. The biggest difference with the previous period is that African economies are becoming productive economies, and that while still depend on exports of commodities, the process of transformation began and the miracle should follow.

 

http://www.portafolio.co/opinion/crecimiento-economico-africa-2015
http://www.africainfomarket.org/estadisticas/item/16925-relaciones-comerciales-colombia-africa-16925

 

18.Import-Export regulation

 

 

Import Declaration: The importer must submit an import declaration to the DIAN. This declaration includes the same information contained on the import registration form and other information such as the duty and sales tax paid, and the bank where these payments were made. This declaration may be presented up to 15 days prior to the arrival of the merchandise to Colombia or up to two months after the shipment's arrival. Once the import declaration is presented and import duties are paid, customs will authorize the delivery of the merchandise.

 

Customs officials are responsible for inspecting merchandise to verify that the description and classification are consistent with the importer's declaration. A customs inspection group often performs after-clearance random investigations to detect fraud, foreign exchange irregularities, and tax evasion. Major customhouse brokers have a customs office in their own bonded warehouses where most clearance procedures are completed before the merchandise is delivered to the customers.

 

To carry out an export, the exporter must: 1) remit the pro-forma invoice, 2) obtain acceptance of conditions from the client (letter of credit, draft bill), 3) negotiate (through a local financial institution) the letter of credit/draft bill from the endorsing foreign bank, 4) present (to Ministry of Commerce, Industry and Tourism) a form known as “Registration as National (local) Producer, Export Offer and Determination of Origin”, 5) present the certificate of origin (when necessary) with copy of the commercial invoice, and other certificates required by the country of destination (textile visa, phytosanitary certificates, etc.), and 6) complete and present the export declaration form, also known as shipping authorization of final export declaration, with all attachments as required.

 

Products that require special documentation include: vegetables, plants, fruits, animals, gold, emeralds, oil, coal, nickel, platinum, textiles, products exported through the General System of Preferences (GSP), products exported through the ATPDEA, and products exported through any free trade agreement.

Most of Colombia’s foreign trade procedures have been streamlined mount of money created when banks make loans. The Fed can also target changes in the discount rate, or the interest rate charged by the Fed when making loans to financial institutions, which is intended to impact short-term interest rates across the entire economy

 

http://www.investopedia.com/terms/f/fiscalpolicy.asp 20.

 

 

Political condition in foreign countries

 

The year 2015 brought significant economic challenges and changes to Latin America. Average real annual GDP growth for the seven largest economies slipped into negative territory, led by economic crises in Brazil, Venezuela, and Argentina.Falling global commodity prices, a product of slowing economic growth in China, hit South American commodity exporters particularly hard. But even Mexico, more industrialized and integrated into the broader North American economy, suffered from the drop in global oil prices. TheOPEC daily basket price plummeted from an average of $96.29 per barrel in 2014 to $49.77 per barrel in 2015 with the price hovering just over $30 at the end of the year. Foreign investors see many of the region’s economies as a risky bet, and Brazil, the largest economy, has seen its sovereign debt downgraded to junk bond status. 2016 will be the year when the political consequences of the change in the region’s economic fortunes play out. The region’s middle class, which has doubled in size since 2002, faces diminished opportunities, and many of its members lack the accumulated wealth and education to easily weather the present downturn. The region’s vulnerable classes, no longer in critical poverty but not part of the middle class either, face an even more difficult situation.  Disgruntled publics In these hard times, public scrutiny of government performance has increased. Disgust with corruption by public officials has become an important motivation for social unrest in countries ranging from Brazil and Mexico to Guatemala and Honduras.  Throughout the region, presidents—right, left, and center—apparently lack the political capital to implement needed reforms. Models that privileged redistribution and consumption over growth, savings, and investment are no longer as tenable in a period of economic recession. But it is difficult to end programs that many people have become accustomed to and now depend on, such as subsidized energy prices in Venezuela and Argentina.  In Mexico, an ambitious reform agenda by President Enrique Peña Nieto—which launched energy, fiscal, education, and judicial reforms—has largely stalled in the face of corruption allegations and mismanagement of the grave domestic security situation. In Brazil, urgent economic reforms are needed due to rising inflation, high levels of public debt, and intractable fiscal deficits. Yet politics is paralyzed by the Petrobras corruption scandal and the evolving drama surrounding the possibility of a presidential impeachment. And the list goes on across the region. 22.Lobbying activities Colombia is one of the countries that more money spent on lobbying operations in the United States , according to a study of the Cepal . In the past three years , Colombia has paid 116 million dollars to firms specializing in export promotion , information management and public relations in Washington , in order to defend their markets in the United States. This figure is equivalent to 26 percent of total expenditures for the same purpose by all Latin American countries . The FNC was one of the most important buyers of these services in the period.

 

http://www.semana.com/confidenciales/articulo/colombia-rey-del-lobbying/14541-3 23.

 

 

 

Size of government budgets

 

The budget by Colombia’s congress reflects austerity, saving, and the defense of the middle class from more taxes, according to a Senate press release. A huge point of debate was the financing of the budget and whether that cost would fall on Colombia’s “middle class.” $60.5 billion or 56% of the budget will be dedicated towards operating costs of the government while money allocated towards public investment will increase to $24 billion or 22% from last year’s $23.1 billion. $4 billion have been set aside for the attention and reparation of Colombia’s victims of the armed conflict, reported Radio Santa Fe.

 

Another $2.5 billion have been allocated towards Colombia’s rural countryside in the form of rural housing, road infrastructure, and productive agriculture projects. “The financial situation is more delicate than originally thought. It is barely viable because the budget for 2015 that is being discussed does not have included the costs of post-conflict. That must be financed in 2015,” said former agriculture minister Juan Camilo Restrepo, according to El Espectador. According to Colombia’s tax authority DIAN, over $15 billion of Colombian riches has been stashed away in offshore tax havens. DIAN announced that it will work to hunt down Colombian capital abroad. Most voted in favor of the budget except for the Democratic Center Party members, led by senator and former president Alvaro Uribe, who have been adamantly opposed to the proposed tax reforms, big government, and contracts. Colombia recorded a Government Budget deficit equal to 2.40 percent of the country's Gross Domestic Product in 2014. Government Budget in Colombia averaged -3.63 percent of GDP from 2001 until 2014, reaching an all time high of 0.23 percent of GDP in 2005 and a record low of -8.47 percent of GDP in 2004. Government Budget in Colombia is reported by the Ministry of Finance and Public Credit Republic of Colombia.

 

Government Budget is an itemized accounting of the payments received by government (taxes and other fees) and the payments made by government (purchases and transfer payments). A budget deficit occurs when an government spends more money than it takes in. The opposite of a budget deficit is a budget surplus. This page provides - Colombia Government Budget - actual values, historical data, forecast, chart, statistics, economic calendar and news. Colombia Government Budget - actual data, historical chart and calendar of releases - was last updated on February of 2016. 

 

http://www.tradingeconomics.com/colombia/government-budget http://colombiareports.com/colombias-congress-approves-budget-2015/ 24.

 

 

World oil, currency and labor markets

 

Emerging-market currencies dropped from a two-week high and stocks declined as declining industrial profits in China and falling oil prices weighed on the outlook for economic growth. A gauge tracking 20 currencies in developing countries fell for the first time in seven days, as a slump in the Russian ruble to a record low outweighed gains in the Brazilian real. Chinese and South Korean shares led declines in Asia as trading resumed in some countries after the Christmas holidays. Industrial profits decreased 1.4 percent year-on-year in November, China’s National Bureau of Statistics said on Sunday.

 

The Ibovespa ended a two-day gain as Brazilian commodity exporters slipped. While sentiment has shifted to a slightly more positive tone since the U.S. raised interest rates for the first time in almost a decade this month, the focus is still tilted toward China and a collapse in commodities. Oil slid from the highest level in three weeks, snapping the longest run of gains since April as Iran repeated its goal of boosting exports after sanctions on the country are lifted. “China is down on concern about weak earnings, which is dragging down other stocks and currencies in Asia," Per Hammarlund, the chief emerging-markets strategist at SEB AB in Stockholm, said by e-mail. “The key asset to follow next year will be oil. Of the main EM currencies, the ruble looks very vulnerable.”

 

Stock Slump The MSCI Emerging Markets Index fell 0.5 percent to 800.32, dropping for the first time in six days. The gauge has retreated 16 percent in 2015, on course for its worst annual performance since 2011. Currencies also have had a rough year, with exchange rates in Turkey, South Africa, Colombia, Brazil and Argentina all falling at least 20 percent against the dollar. The currency gauge is down 14 percent since the start of January, poised for its worst year since 1997. “Volatility will continue into the first half of 2016 until we see signs that growth has stabilized in China, commodity prices have bottomed out and investors have adjusted to the reality for a continued rise in U.S. interest rates,” said Jonathan Ravelas, the chief market strategist at Manila-based BDO Unibank Inc. “The data coming out of China reinforces a struggling economy, which has been one of the ongoing concerns in the market.”

 

http://www.bloomberg.com/news/articles/2015-12-28/won-leads-emerging-market-gains-as-stocks-mixed-in-holiday-trade 25