Colombian Investment In Costa Rica Skyrockets

As negotiators from Colombia and this country continue their labors toward a free trade treaty, Costa Ricans businesses are largely enthusiastic. Even without a pact, Colombian investment in the country has risen precipitously in the last 11 years.



In 2000, it was barely a million dollars. Last year, Colombian businessmen invested $147 million to become the fourth biggest foreign investors after the United States, Spain and Mexico.

Despite the fact that Colombia duplicates some of Costa Rica's exports such as coffee and is a direct competitor in other export markets, both countries can benefit from the trade pact.

For example, many businessmen hope that Colombian businessmen may invest in local export businesses to enlarge their presence in third markets or even open new territories.

Backing for the pact has been growing. Monday, the national newspaper La Nacion gave its editorial blessing on the free trade treaty, not for the first time, urging negotiations forward.

In some cases, Colombians are a part of the local business picture even without the pact. For example, the paint manufacturer Kativo in this country was purchased by the Colombian firm Grupo Pintuco. the local cookie maker Galletas Pozuelo was bought by Compania Nacional de Chocolates and the BAC bank here is now owned by Grupo Aval.

Foreign Trade Minister Anabel Gonzalez pointed out that already Colombian investment is prominent in pineapple and banana exports, financial and insurance services and paints and construction materials.

As for the other main investors in Costa Rica, the United States accounts for slightly more than half (55%) last year while the investment from Mexico and Spain is largely due to the entry into this country of Claro and Movistar's cell phone services.

By Rod Hughes, Fijatevos.com