Political, Governmental, and Legal Forces

Now, according to the data of the World Bank, Colombia is one of the countries that spend the most in terms of military expenditure. In 2014, our country spend a 3,5% of Colombia’s PIB. This is because of the different guerrillas that are in our country nowadays like ELN and FARC but now, the government is working to make a peace treatment with them. If this happens, the expenses could decrease and this can benefit the industries since there will be new investments for them.

El Banco Mundial, Gasto Militar (% del PIB), [Online] Available at:

http://datos.bancomundial.org/indicador/MS.MIL.XPND.GD.ZS [Accessed Feb 14, 2016]

Gasto en Defensa y Seguridad (1998-2011), Historia del Gasto en Defensa, [Online] Available at: https://www.mindefensa.gov.co/irj/go/km/docs/Mindefensa/Documentos/descargas/estudios%20sectoriales/Serie%20Prospectiva/Gasto%20en%20defensa%20y%20Seguridad%201998-2011.pdf

Legislation on equal employment

The employment equality makes an essential part of respect and protection of the human rights, and the fair and equitable economic development. The Ministry of Labor has set up a panel that pursues the insurance of the mainstreaming of differential approaches to all policies, programs and projects developed. The possibility of a worthy, quality job has to be a possibility for all Colombians.

The Labor Gender Equality seeks 1. Avoid discriminations and inequalities in the labor environment because of gender. 2. Reduce unemployment gaps between men and women 3. Reduce the informality concentrated in women 4. Promote and strengthen social dialogue and generate mechanisms for surveillance, controlling and monitoring indicators of gender gaps in the labor market.

The Employment Equality for Reparations to Victims of Armed Conflict is a program that answers to the obligations indicated in the law 1448 of 2011, which states the Ministry of Labor to develop a public policy that reinstated the capabilities of the victims. This is to improve the employability and promote self-employment for them.

The Employment Equality for the Fight against the Traffic of persons for forced labor seeks to make visible the purpose of the crime as well as raise awareness among potential victims, government officials and authorities involved in the prevention and care of the population. This approach also develops awareness campaigns and empowerment to prevent to prevent, eradicate and punish trafficking of persons for forced labor of Colombians inside and outside the country.

The equality is an important key for the industry because every organization has to recognize and respect the work of their employees; there always has to be an ethical work, employer – employee and employee – employer.

Mintrabajo, Grupo de Equidad Laboral, [Online] Available at:

http://www.mintrabajo.gov.co/equidad.html [Accessed Feb 14, 2016]

Level of government subsidies

Juan Manuel Santos launched its new housing plan; ’Mi Casa Ya’ which plans to build more than 400,000 homes in the next four years (This information is from 2014.)

This program is directed to homes with incomes greater that 2 to 4 minimum salaries ($1’378.908 - $2’757.816) to which the government will subsidize their first payment of their home, with a value greater that a 70 SMLMV ($48’261.780) and less than or equal to ($93’076.290) and the government also will pay the interest they get with the bank.

On the other hand, the government doesn’t give entrepreneurs or bossiness subsidies in any industry. Although there is an “Incentivo a la Capitalización Rural –ICR” which improves the productivity and competitiveness of the farmers by given them investments in capital goods.

The fact that the government does not help the producers, can affect them, not all of them, but some of them because this can cause unemployment among other. Now if we talk about Santos program ‘Mi Casa Ya’, this is a great impact for families who doesn’t have the opportunity to buy a house on their own, and the government giving this financial support subsides, to individuals, can improve the economics and so as the quality of life of people. This can give them different opportunities for them to have a better life.

El Tiempo, 19 Popuestas a Inquietudes sobre nuevos subsidios de vivienda, [Online] Available at:

http://www.eltiempo.com/economia/sectores/inquietudes-sobre-subsidio-de-vivienda-mi-casa-ya-del-gobierno-colombiano/14761496 [Accessed Feb 14, 2016]

Min Vivienda, Mi Casa Ya, [Online] Available at:

http://www.minvivienda.gov.co/mi-casa-ya [Accessed Feb 14, 2016]

MINAGRICULTURA, Incentivo a la Capitalización Rural- ICR +, [Online] Available at:

https://www.minagricultura.gov.co/tramites-servicios/credito-agropecuario/Paginas/Incentivo-a-la-Capitalizacion-Rural-Programa-DRE-v2.aspx [Accessed Feb 14, 2016]

Antitrust legislation

• Colombian Constitution of 1991 as amended in 1997 establishes;

Article 33:

“The economic activity and private initiative are free, within the limits of the common good. For execution, no one could require the law authorizes neither prior permits nor requirements.

The free economic competence is a right for everyone who carries responsibilities.

The organization, as a basis for development, has a social function that implies obligations. The State will strengthen the solidarity organizations and will stimulate business development.

The State, rule of law, will prevent the obstruction or the restriction of the economic freedom and will avoid or control people or organizations make of their dominant position in the domestic market.

The law will delimit the scope of economic freedom when the social interest requires it, the environment and the cultural heritage of the nation.”

Article 334:

“The economy’s general direction will be in charge of the State. This will interfere for rule of law in the exploitation of natural resources, land use, production, distribution, use and consumption of goods, and public and private service to rationalize the economy in order to get similar improvement of the quality of life of the population, the equitable sharing of the opportunities and the benefits of development and preservation of a healthy environment.

The State, in a special way, will interfere to give full employment of human resources and ensure that all people, especially those with lower incomes, have effective access to basic goods and services. Also to promote the productivity and the competitiveness and the harmonious development of the regions.”

• Decree No. 2153 of 1992, which restructures the Superintendence of Industry and Commerce.

• Decree No. 1202 of 1964, which regulates the law 155/59 on restrictive trade practices.

• Law No. 155/59 on Restrictive Trade Practices.

• Decision 285 of the Commission of the Cartagena Agreement, with rules for prevent or correct the distortions in the competence caused by practices that restrict free competition.

All organizations in every industry must take into account the antitrust legislation; an organization must never take advantage of their position.

SICE, Constitución Política de Colombia, 1991 con reforma de 1997, [Online] Available at:

http://www.sice.oas.org/compol/natleg/Colombia/333.asp  

[Accessed Feb 14, 2016]

SICE, Legislación Nacional sobre Política de Competencia, [Online] Available at:

http://www.sice.oas.org/compol/natlegs.asp [Accessed Feb 14, 2016]

Colombian international relationships

In an article taken from “La Presidencia de la República” in 2012, states that Colombia nowadays has better international relationships.

Colombia’s relationships with neighbor countries are better today and the country has a leadership of major multilateral and regional organizations.

Among the most important advances of the portfolio of foreign policy, includes the full restoration of relations with Ecuador and Venezuela.

Some of other actions that stand out about Colombia’s international relationships are the consolidation of bilateral relation with countries in the region, especially with Central America and the Caribbean, in terms of security, culture and bilingualism.

On the other hand, to address social issues that affect the international relationships, two plans were created: “Plan Fronteras para la Prosperidad” and “Plan integral de Prevención, Niños, Niñas y Adolescentes con oportunidades.”

Also, a pacific alliance was created with Chile, Peru, Mexico, where Panama and Costa Rica are the observers.

Is in process the energy interconnection with Chile, Ecuador and Peru.

Colombia also support for the signing of the TLC with the United States, South Korea, European Union, and the APPRI with Japan and supported as well the negotiations of trade agreements with Panama, Costa Rica, Turkey, Israel and the Pacific Alliance.

There was also a non-traditional diversification of international relationships: APEC, ASEAN, FOCALE, TPP, and the Customs Union. Fifteen missions made to India, Russia, Turkey, Azerbaijan, Kazakhstan, Ukraine, Belarus, Singapore, Indonesia, Australia, Egypt, Myanmar, Cambodia, Vietnam and New Zealand.

There are four new embassies in Turkey, Indonesia, United Arab Emirates and Trinidad and Tobago, and four new consulates; Orlando, Newark, Vancouver and Shanghai.

Colombia, on the other hand, achieved the abolition of the visa for the European Union (which was the biggest achievement so far), Haiti, Georgia, Jamaica, Russia, Sri Lanka, El Salvador and Turkey.

The visa for the United States was extended to 10 years.

The international relationships are a key for development in our country. Thanks to this we can get to new technology etc., so this is vital for us and for every other industry.

Presidencia de la República, (2012), Colombia hoy tiene mejores relaciones internaiconales, [Online] Available at:

http://wsp.presidencia.gov.co/Prensa/2012/Agosto/Paginas/20120801_03.aspx [Accessed Feb 14, 2016]

Import – export regulations

To import to Colombia we have to take into account the following:

• Location of subheading tariff

• Importer registration: For this, the individual has to be part of the Common Regime, be subscripted in the Camara de Comercio and have a RUT which allows to identify, locate and classify the subjects of obligations managed and controlled by the DIAN.

• Market study: Analyze the price of the product in the international market, costs of international transport, nationalization costs and other expenses.

• Identification of product: Check the subheading of the product to be imported to know the customs duties (IVA, customs tariff, etc.) also check if the product is subject to clearances and previous inscriptions towards entities such as ICA, INVIMA, among others.

• Procedure by the Ministry of Commerce, Industry and Tourism (if Import registration is required)

     -For imports which value is greater that USD1000:

       +   Acquire certificate or digital signature

       +   Download user manual, programs and imports

     -For imports which value is lees than USD1000

       +   Registration in the operative group       

       +   Sign conditions of use

       +   Registration of imports

       +     Payment of import registration

• Exchange procedure in imports

• Other formalitie

• Nationalization proces

      - Once the commodity arrives to Colombia, ask for an authorization to make a pre-           inspection.   

      - Is the value of import is equal or greater than USD5000; the person should fill the           Andean value declaration Custom.

       - Pay the custom attributes

       - To pick the commodity, present the following documents: