CULTURE AND REGIONAL ECONOMY OF EUROPE

Grancolombian Polytechnic University Institution

Faculty of Administrative, Economic and Accounting Sciences

Tutor
JOHANA PAOLA HOYOS JIMENEZ

Presented by

LAURA QUINTERO SANDOVAL (0910012990)

MONICA LILIANA CORTES MORALES (1521020343)
MAIRA ALEJANDRA CALDERÓN GÓMEZ (1321070242)
ALVARO ANDRES MURCIA RAMOS (1321480072)

Bogotá DC, Colombia

Julio 2017
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INDEX

CHARACTERIZATION OF THE COUNTRIES .........................Error! Bookmark not defined.

 Finland ................................................................................................................................ 4
 France .................................................................................................................................. 5
 Germany.............................................................................................................................. 6
EVOLUTION IN THE LAST 10 YEARS ..................................................................................... 7
 Finland ................................................................................................................................ 7
 France .................................................................................................................................. 7
 Germany.............................................................................................................................. 8
ANALYSIS OF THE MAIN ECONOMIC INDICATORS ........................................................... 9
PUBLIC DEBT ...........................................................................Error! Bookmark not defined.1
IPC ..............................................................................................Error! Bookmark not defined.2
 Finland .............................................................................Error! Bookmark not defined.2
 France ................................................................................................................................ 13
 Germany...........................................................................Error! Bookmark not defined.4
CULTURE .................................................................................................................................... 15
 Finland .............................................................................................................................. 15
 France ................................................................................................................................ 16
 Germany............................................................................................................................ 17
TRADE ......................................................................................................................................... 18
 Finland .............................................................................................................................. 18
 Germany............................................................................................................................ 19
 France ................................................................................................................................ 20
HISTORY ..................................................................................................................................... 22
FINAL DOCUMENT OF THE EU-COLOMBIA TRADE AGREEMENT FRANCE .............. 24
The Colombia – European Union Trade Agreement .................................................................... 26
Opportunities of business Between Colombia and Filand ............................................................ 31
Opportunities of business Between Colombia and France ........................................................... 31
Opportunities of business Between Colombia and Germany ....................................................... 32
REFERENCES ............................................................................................................................. 34
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GRAPICS INDEX

Graphic 1. Analysis of the main economic indicators .................................................................... 9

 France .................................................................................................................................. 9
 Finland ................................................................................................................................ 9
 Germany.............................................................................................................................. 9
Graphic 2. Public debt..................................................................Error! Bookmark not defined.1
 Finland .............................................................................................................................. 11
 France ................................................................................................................................ 11
 Germany............................................................................................................................ 12
Graphic 3. IPC ............................................................................Error! Bookmark not defined.2
 Finland .............................................................................Error! Bookmark not defined.2
 France ................................................................................................................................ 13
 Germany............................................................................................................................ 14
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CHARACTERIZATION OF THE COUNTRIES

FINLAND

Finland, its capital is Helsinki officially the Republic of Finland has been a member of the

European Union since 1995 and is located in northeastern Europe. It has borders to the west with

Sweden, to the east with Russia and to the north with Norway, with a population of 5.4 million

The president is Sauli Niinistö, its main religion is Evangelical-Lutheran Church with a (89%). the

country's industry focuses on pulp, metallurgy and high technology

Finland is locatd in the north-eastern part of Europe,almost a quarter of its surface is north of the

Arctic circle, making it the second most northern country in the world after Iceland.Finland is

bathed by the Baltic Sea in the south. where is the highest elevation of the country, Mount Halti,

of 1,328 meters. The species are typical of the northern conifer forest, such as the bear, elk and

owl. There are some native species, such as the Saimaa seal, a relic of glacial times.

The average temperature in Finland is several degrees higher (in winter more than 10 degrees

Celsius). The seasons are very marked. In spring the average daily temperature ranges from 0 to

10 degrees Celsius. In autumn, which begins in late August, the temperature remains below 10

degrees Celsius.

The population of Finland is about 5.2 million. Finland is the sixth European country in

extension and has a modest density of 17 inhabitants per km2. The majority, 65%, live in urban

areas, and 35% in rural areas, the two official languages are Finnish and Swedish. Finnish is

largely the mother tongue of 93% of the population.

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FRANCE

Its capital is Paris considered as one of the best tourist destinations in the world,

Officially French Republic, is a sovereign country, member of the European Union, is located in

the western part of the European continent, in turn this country limits to the south with the

Mediterranean Sea, as well as with the Principality of Monaco, and with Italy, while to the west

the natural border is the Atlantic Ocean, while to the north it borders the Channel, the North Sea

and Belgium. Constituted in social and democratic state of right and whose form of government

is the republic.

It’s one of the places of the world whose economy is one of the considered ones as a product of

the good levels of its GDP whose bases are based on the commercial activities, banking and of

course in tourism in which it is estimated that more than 80 million foreign visitors per year, so

the industry is very important throughout the country, the currency of France at present is the

Euro.

The official language is French, in France the flora and the faunason the varied as it is its

different geographic areas or the climate can be different , such as in the Massif Central plant

native species are chestnut and beech, while in the subalpine area it is abundant juniper and

dwarf pine.
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GERMANY

Germany (in German Deutschland), officially the Federal Republic of Germany, is a central

European country that is part of the European Union (EU). It borders on the north with the North

Sea, Denmark and the Baltic Sea; to the east with Poland and the Czech Republic; to the south

with Austria and Switzerland, and to the west with France, Luxembourg, Belgium and the

Netherlands. The territory of Germany covers 357,021 km ² and has a temperate climate. With

more than 82 million inhabitants, it represents the largest population among the member states of

the European Union and is home to the third largest group of international emigrants.

It is a federal parliamentary republic of sixteen states (Bundesländer). The capital and largest

city is Berlin. It is a member of the United Nations, NATO, G8, G4 nations, and signed the Kyoto

Protocol. It is the third largest economy in terms of nominal GDP, the first in Europe, and the

largest exporter of goods in the world in 2007.The official language is German, the religion are

Christians 62.5% (Catholics 31.4%, Protestants 31.1%), Muslims 4%, Jews 0.2%, the local

currency in the Euro (EUR)

Most of the mammals live in forests where you can find animals such as roe deer, common deer,

wild boar, red fox, European deer and many mustelids. Beavers and otters are increasingly rare

inhabitants of rivers. As the country is in an area with temperate climate its flora is characterized

by extensive wood and coniferous forests

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EVOLUTION IN THE LAST 10 YEARS

Finland

In the last 10 years Finland grew faster than France and Germany, the Finnish economy is heavily

dependent on exports, more than 80% of production is exported. The main export products are

wood and paper machinery, shipbuilding, electronics and chemical. The economic growth in

Finland has been the internationalization of companies, and the rapid development of the

information and communication technology export sector. After the crisis of 2009 the government

of Finland adopted a program against the crisis to curb unemployment, the reduction of industrial

production.

Fuente
Banco Santander (2017) Finlandia: practica de negocio. Recuperado de
https://es.portal.santandertrade.com/establecerse-extranjero/finlandia/practica-de-negocio

France

It is the fifth economy in the world, behind the United States, Japan, China and Germany. In

2007, its Gross Domestic Product (GDP) was 1 trillion 892 billion euros. It is the fifth country for

its exports and the sixth for its imports. The unemployment rate is still higher than that of other

developed countries. In 2014 France stopped being the fifth world economic power in favor of the

United Kingdom. The country experienced great difficulties to overcome the crisis, although GDP

growth recovered (1.3%) in 2015, driven by public and domestic consumption. The government

managed to clean up public accounts and the budget deficit narrowed to 3.3%, according to

France's treaties with the European Commission in 2016. France is the largest agricultural power

in the European Union (contributes a quarter of the production agricultural production). However,
 8

this sector accounts for a small part of the country's GDP and employs less than 3% of the

population. French agriculture receives substantial subsidies, coming mostly from the European

Union. The main products are wheat, corn, meat and wine. The main industrial sectors in France

are telecommunications, electronics, automotive, aerospace and armament.

Fuente
Banco Santander (2017) Francia: practica de negocio. Recuperado de
https://es.portal.santandertrade.com/establecerse-extranjero/francia/practica-de-negocio.

Germany

It is the largest economy in Europe and the fourth world economic power, affected in recent

years by its vulnerability to external shocks, as well as its dependence on external demand, the

considerable income obtained from exports, in 2007 Germany had the first victims of the market

crisis was the public and private banking sector a solution that the country found was to reduce

working hours, by the end of 2007 industrial production callus, after spending 10 years Germany

has a solid economy, growth German economy consolidated itself rising to 1.7% of GDP,

supported by household consumption and trade, the unemployment rate fell to its lowest level in

the last 25 years. The main goods exported from Germany are vehicles, machinery, chemicals,

electronic products, pharmaceuticals, transport equipment, basic metals, food products, rubber and

plastics.

Fuente
Banco Santander (2017) Alemania: practica de negocio. Recuperado de
https://es.portal.santandertrade.com/establecerse-extranjero/alemania/practica-de-negocio

ANALYSIS OF THE MAIN ECONOMIC INDICATORS

 9

 annual evolution pib Finland

Grafico1.PIB Finland.
Fuente: Copyright Datosmacro.com
 annual evolution pib France

Grafico2.PIB France.
Fuente: Copyright Datosmacro.com
 annual evolution pib Germany

Grafico3.PIB Germany, Fuente: Copyright Datosmacro.com

 10

 Unemployment Finland.

Grafico1. Unemployment Finland.

Fuente: Copyright Datosmacro.com
 Unemployment France.

Grafico2. Unemployment France.

Fuente: Copyright Datosmacro.com
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 Unemployment German.

Grafico2.
Unemploymen
t Germany.
Fuente:
Copyright
Datosmacro.c
om

PUBLIC DEBT

Finland

The public debt in Finland has grown in the first quarter of 2017 by 519 million euros and stands

at 136,573 million. This figure assumes that debt reached 62.6% of GDP in Finland, while in the

previous quarter, the fourth quarter of 2016, it was 63.1%.

Fuente

Copyright, (2009) Máster en Comercio y Finanzas. Recuperado de

http://www.comercioexterior.ub.edu/correccion/11-12/Finlandia/evolucion.htm
France

The public debt in France has grown in the first quarter of 2017 by 62,350 million euros and

stands at 2,209,768 million. This figure assumes that the debt reached 98.7% of GDP in France,

while in the previous quarter, the fourth quarter of 2016, it was 96.3%.

IMF – World Economic Outlook Database, (2017) Contexto económico. Recuperado de

https://es.portal.santandertrade.com/analizar-mercados/francia/politica-y-economia.

Germany

Public debt in Germany declined in the first quarter of 2017 by 25,519 million euros and stands

at 2,114,849 million. This figure assumes that the debt reached 66.9% of GDP in Germany, while

in the previous quarter, the fourth quarter of 2016, it was 68.3%.

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Fuente
Banco Santander (2017) Alemania: practica de negocio. Recuperado de
https://es.portal.santandertrade.com/establecerse-extranjero/alemania/practica-de-negocio

IPC

FINLAND

The annual rate of change of the CPI in Finland in August 2017 was 0.7%, 2 tenths higher than

that of the previous month. The monthly variation of the CPI (Consumer Price Index) was 0.3%,

so that the accumulated inflation in 2017 is 0.1%.

It should be noted that the 4.1% increase in dress and footwear prices, with a year-on-year rate

of -2.9%, which contrasts with the drop in transport prices of -0.8%, and a year-on-year variation

of 2.4%.

FRANCE

The annual rate of change of the CPI in France in August 2017 was 0.9%, 2 decimals higher than

the previous month. The monthly variation of the CPI (Consumer Price Index) was 0.5%, so that

the accumulated inflation in 2017 is 0.8%. It should be noted that 6.1% of clothing and footwear

prices rose to -1.2% year-on-year, in contrast to the fall in medical prices of -0.4%, and a year-on-

year change of 0.1%.

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GERMANY

The annual rate of change of the CPI in Germany in August 2017 was 1.8%, 1 decimal higher

than the previous month. The monthly variation of the CPI (Consumer Price Index) was 0.1%, so

that accumulated inflation in 2017 is 0.6%.

It should be noted that 2.5% of Clothing and footwear prices rose to 2.7%, which contrasts with

the decline in Leisure and Culture prices of -0.5%, and an interannual variation of 1.7%.

CULTURE

Finland

Finland is a country friendly to foreigners as their tradition and customs are still the European

line and most of the time is very relaxed. It is a town which has a strong nationalist effect, based

on it is history and the avant-garde approach that has achieved in recent years in terms of

technology and education. They do not tend to initiate conversations with strangers, except if it

is helping or providing information, since it is a very hospitable and supportive town, despite its

apparent sobriety. It’s a population very cultured. They are great readers of books and diverse

publication, and area recognized worldwide for the quality of their libraries. The most common

form of getting is the handshake. Observe the basic rules of courtesy.

Business culture in Finland

 Be punctual is a sign of respect and efficiency.

 Be prepared for almost have not trivial conversations (if any) before talking business,

Finns never interrupt another person when he talks; they tend to distrust those who talk a

lot. Finns rarely ask questions; they expect that the exhibitor give sufficient details
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 hand in hand in a brief and firm, without additional gestures

 Finland is a modern country and commercially mature that enjoys close relations with its

Nordic neighbors. The social and business protocol is similar to that governing in the US,

and therefore there is no need to mention special taboos. Relationships are important in

the social world and business as the Finns prefer to work with people they know and

trust.

France

From the middle Ages, France has distinguished himself as a cultural center in Europe. The

increase of their wealth, through the grant to the art that the monarchy made during several

centuries, It was the most important factor that attracted to Paris to the biggest European talent.

France has a large number of customs, many of them are very old and have passed on from

generation to generation in an unalterable being distinctive of this people, among them we can

highlight the family ties that continue to be very strong but with a few changes that modern life

has brought the fact of smaller families, The cuisine is a real art and its gastronomy is recognized

all over the world. His extensive culinary tradition dates back to the middle ages being born at that

time, the first books, The French tend to greet and say goodbye with a handshake.

Business culture in France

 Appointments are usually scheduled between 9 am and 7 pm

 Greet your partner with a handshake and go to her or him by his last name

 In the sphere of business exchanges of gifts are not common except in time of Christmas,

when it is customary to give chocolates, wine, books, etc.

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 Be patient because negotiations can take a long time and decisions are made to wait.

 Avoid confrontations and pressure tactics, but don't hesitate to discuss and defend their

point of view.

Germany

The German society is identified by the skill that has their populations to plan and organize. This

population is associated with the observance of the rules and discipline, and it is true that the

Germans have these two qualities very radical and are proud of it. It is for this reason that the

punctuality, neatness and order are practically are always present.

The effort and excellence are recognized constantly, so often, the Germans considered his

work as one of the most important things on a day to day basis. By this same excel in sports,

technology and the automotive industry. This is reflected, for example, in the form of greeting.

Business culture in France

 It is essential to arriving on time to a meeting and even this well seen arriving with 15

minutes in advance. The Meetings usually take place between 10h and 16h, avoid the

lunch hour (from 13h to 15h) and the Friday afternoon.

 To make the first contact, use the telephone to verify that you are talking to the right

person. Confirm your interest by e-mail, remind her and set up a meeting.

 Usually, you will be well received and after some questions about the trip, your partner

will begin to discuss business quickly. It is expected that your answers are informative

and well documented. It is very important to prepare the meetings to have solid

arguments. Should not be interrupted.

TRADE

Finland
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Finland's most significant product is copper. It also exploits other mining products, such as

zinc, silver, gold, chromium and nickel. The industrial sector in Finland is dominated by

companies engaged in paper production, pulp and paper mills. Other important industries for

development in Finland are the production of heavy machinery, printing materials, basic metals,

ceramics and glass. Its currency is the euro. The timber industry, paper and pulp are almost half of

annual exports. Imports include petroleum, chemicals, equipment for machinery, food and iron

and steel products. Finland's main business transactions are with Sweden, Germany and Great

Britain. But it also maintains good commercial relations with United States, Denmark, Japan and

Norway. Finland entered the European Union in May 1994 and ratified it by means of a

referendum.Finland has a highly industrialized economy, based on large forest resources, high

levels of capital investment, maximum technological development, excellent well-being and

security for its inhabitants. Traditionally, Finland has been a net importer of capital to finance

industrial growth. Since the 1980s Finland's rate of economic development has been one of the

highest in industrialized countries. The most dynamic economic sectors in Finland are the wood,

metals, engineering, telecommunications and electronic industries, along with design. With the

exception of wood and some minerals, Finland depends on imports to stock up on raw materials,

energy, and some components for manufactured goods. Due to the climate, agricultural

development is limited to self-sufficiency in commodities. Forestry is important for export and

provides a secondary occupation for the rural population. Finland's main exports are Kaolin Coated

Paper ($ 5 Billion), Refined Petroleum ($ 3.92 Billion), Large Flat Rolled Stainless Steel ($ 2.97

Billion), Cars ($ 2.33 Miles of millions) and Sawnwood ($ 1.81 Billions), according to the

classification of the Harmonized System (HS). Its main imports are Crude Oil ($ 4.05 Billion),
 17

Cars ($ 2.5 Billion), Oil Refining ($ 2.44 Billion), Packaged Drugs ($ 1.57 Billion) and Computers

( $ 1.34 Billion).

The main destinations for Finland's exports are Germany ($ 8.79 Billion), Sweden ($ 5.78

Billion), the United States ($ 4.58 Billion), the Netherlands ($ 3.96 Miles of millions) and Russia

($ 3.23 Billion). The main origins of its imports are Germany ($ 8.7 billion), Sweden ($ 6.44

billion), Russia ($ 6.23 billion), China ($ 4.32 billion) and the Netherlands ($ 3.7 Billion).

Finland borders Norway, Russia and Sweden by land and with Estonia by sea.

Germany

Germany is the fourth largest economy in the world after the United States, China and Japan. It

is considered the economic engine of the European union as it is the largest exporter of capital

worldwide and is the third largest exporter in the world. Its exports represent 41% of its national

production. The sector that most influences the national production is the one of services, followed

by the industry and in a smaller percentage the agriculture. Among the most exported products in

Germany are vehicles, machinery, electronic and chemical products, foodstuffs and

pharmaceuticals, rubbers and plastics.

Germany is a country committed to the transition of renewable energy, which they call

Energiewende, represents more than 27% of electricity consumed in the country, is by far the

largest producer of wind turbines and solar technology in the world, as well as is the largest

producer of lignite. It is a country rich in wood, uranium, nickel, copper, iron and natural gas.

Germany gets most of its energy from fossil fuels, followed by nuclear power and ultimately from

its renewable energy. For its location, it is very important for the realization of trade fairs in the
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world. The most important trade fairs are held in cities such as Berlin, Hannover, Frankfurt and

Munich. Despite being one of the five countries that most export arms, it is not a permanent

member of the security council of the United Nations. It is the third agricultural producer of the

European Union, after France and Italy and its main products are wheat, potatoes, cabbage, fruits

and barley. Germany is a highly industrialized country, but a high percentage of its territory is

covered by forests.

The main exports of Germany are Cars ($ 153 Billion), Parts-Spare Parts ($ 56.2 Billion),

Packaged Drugs ($ 50.3 Billion), Airplanes, Helicopters, and / or Spacecraft $ 32.8 Billions) and

Human or Animal Blood ($ 16.3 Billions), according to the classification of the Harmonized

System (HS). Its main imports are Cars ($ 46.7 Billion), Parts-Parts ($ 34.9 Billion), Crude Oil ($

30.5 Billion), Computers ($ 26.1 Billion) and Packaged Medicines $ 24.1 Billion).

The main destinations for Germany's exports are the United States ($ 122 Billions), France ($ 101

Billions), the United Kingdom ($ 93.9 Billions), China ($ 78.6 Billions) and the Netherlands ($

72.1 Billion). The main origins of its imports are China ($ 97.4 Billion), the Netherlands ($ 91.3

Billion), France ($ 72.3 Billion), the United States ($ 63.3 Billion) and Italy ($ 51.5 Billion).

France

France is one of the eight major exporting powers in the world. Trade accounts for more than

60% of GDP (2016). However, the country has a significant structural trade deficit. Imports are

developing at high speed because the French acquire a large quantity of imported goods, which

are sold at a lower price in the local market than "made in France" products. Energy imports also

have a large impact on current accounts. In addition, despite the efforts made by the government

to promote innovation, the added value of French exports is relatively low. After reaching a peak

in 2011, the trade deficit has been progressively reduced until 2015. Since then, the acceleration
 19

of imports led to a higher trade deficit (EUR 48.3 billion in 2016 and EUR 34.4 billion in the first

half of 2017).

France's main trading partners are the European Union, the United States and China. France

mainly exports vehicles, pharmaceuticals, food, wine, hydrocarbons and electronic components,

and imports consumer goods, vehicles, hydrocarbons and pharmaceuticals.

Among the main clients of the trade of France, are Germany, Belgium, Italy, Spain and United

Kingdom. Its main suppliers Germany, china, Belgium, Italy and United states. Its main products

include aircraft, helicopters, airplanes, automobiles, tractor parts, petroleum oils and integrated

circuits. The trade sector employs more than 3 million people in France, almost one employee in

five. Trade is the main activity of 660,000 companies: 75% in retail trade (1.6 million employees),

26% in wholesale trade (995,000) and 13% in trade in car repairs (420 000) .76 77 Turning to

turnover, the wholesale trade is 620 billion, 78 in retail trade 440 billion, 79 in automobile trade

and 140 billion Most of the companies are small businesses and shops of the commercial craft, of

the wholesale commerce and of the commerce trade. But the retail sector is dominated by large

retailers.

The main exports of France are Aircraft, helicopters and / or spacecraft ($ 51 Billions),

Packaged Drugs ($ 24.3 Billion), Cars ($ 21.2 Billion), Spare Parts $ 17.8 Billion) and Gas

Turbines ($ 12.6 Billion), according to the Harmonized System (HS) classification. Its main

imports are Cars ($ 29.6 Billion), Crude Oil ($ 19.9 Billion), Petroleum Gas ($ 18.6 Billion),

Petroleum Refining ($ 17.4 Billion) and Parts of aircraft ($ 14.8 billion). The main destinations for

France's exports are Germany ($ 72.3 Billion), the United States ($ 39.1 Billion), the United

Kingdom ($ 37.6 Billion), Belgium-Luxembourg ($ 36, 8 Billion) and Italy ($ 35.5 Billion).
 20

HISTORY

For the European Union, Colombia is a strategic partner in Latin America with whom we share

many links and an agreement that is based on a broad framework of collaboration and political

dialogue. This new agreement will open bilateral trade relations and investment between the EU

and the countries that sign this agreement. One of the most important points in this agreement is

the commitment of the parties to repeat human rights and the development of sustainable economic

policies. This agreement will contribute to improving the quality of life of Colombians and will

open new market opportunities for our country.

This agreement also allows foreigners to look to Colombia as a new possibility for their

investments and thus stimulate the growth of the economy. Every day, the world changes rapidly,

an example of this is that in the decade of the 90 there were 70 commercial agreements, already in

2010 there are 300 trade agreements in force and this figure to date has grown much more.

Colombia has not been left behind and has become one of the most attractive economies in Latin

America. Implementing a policy of internationalization, the government of Colombia makes the

decision to connect the country with the world and have access to international markets, including

the European Union. In a few words, the trade agreement between Colombia and the EU seeks to

create a legal framework to stabilize trade relations, generate jobs and bribe benefits for industrial

sectors, as the EU is one of the main destinations for non-mining exports. country. The agreement

between Colombia and the EU seeks, firstly, that products and services to enter with an advantage

through a preferential treatment and second to reduce non-tariff barriers of goods and services, so

that Colombian products exported to Europe enter with an advantage over countries that do not
 21

have them and that the same happens with the products of the European Union that enter our

country.

These agreements are indefinite, they do not have a deadline, different from what happens with

the preferential access that the EU provides to 176 countries through the generalized system of

preferences, which do not benefit all exports and is granted unilaterally and transiently. With this

agreement not only seeks to strengthen the strictly commercial, but also contribute to democracy,

job creation, respect for human rights, reduce poverty, commitment to the environment and

sustainable development.

The end of any trade treaty is to access a market and is divided according to the goods to be

exported between agricultural and non-agricultural. With regard to non-agricultural markets,

coverage will be 100%, ie for industrial and fisheries products. For products entering Colombia,

tariff elimination periods are taken into account to prevent a bad impact on the economy and thus

preserve the principle of asymmetry. In fact, Colombian products can enter without any tariff since

the signing of the treaty, while products that want to enter Colombia must wait a period of 10 years

to be able to enter duty-free. The agricultural markets are more complex, that is why it does not

allow the complete liberation of these products. Some of them can enter with zero tariff

immediately sign the agreement, products such as coffee, flowers, palm oil, tobacco products and

cocoa. But other kinds of products, called sensitive, beef, bananas and sugar, will undergo gradual

or contingent liberalization.

FINAL DOCUMENT OF THE EU-COLOMBIA TRADE AGREEMENT.

The trade agreement between Colombia and the European Union seeks to create a legal

framework that increases stability in trade relations, provides greater benefits for industrial sectors

and helps to generate employment, Colombia is one of the main Latin American economies and
 22

its export capacity has increased exponentially in recent decades. In 2011, Colombia exported

products by 5.5 times the value reported in 1995. In the last ten years, from 2002 to 2011,

Colombian exports to the European Union reached a figure of 51,214 million dollars, on the other

On the other hand, Colombia exports to Europe less than half the United States. These facts

demonstrate the great potential of Colombian export growth towards the European Union.

Main export destinations:

United States: 21,705 million, European Union: 8,976 million, Ecuador: 1,909 million, Venezuela:

1,750 million, Peru: 1,397 million, Mexico: 705 million, Japan: $ 528 million

Rest of the world: 19.984 million. Most of the Colombian exports are concentrated in four

products, which are traditional exports: petroleum and its derivatives, coal, coffee and ferronickel.

Main exports by sectors 2011.

Mining sector: 31,260 million, Industrial Sector: 23,276 million, Agricultural, livestock, hunting

and forestry sector: 2,264 million, Other sectors: 154 million

Main traditional and non-traditional exports 2011

Traditional Exports: 39,786 million, Non-Traditional Exports: 17,168 million.

Note: The main non-traditional Colombian exports are bananas, flowers, non-monetary gold,

emeralds and textiles

Top Colombian export destinations within the EU

Netherlands: 2.524 million, Spain: 1,720 million, United Kingdom: 1,196 million, Italy: 745

million, Belgium: 621 million, Denmark: 451 million, France: 444 million, Germany: 419 million,

Rest of Europe: 856 million

Colombia exports to the European Union:

Fuels, minerals and related products: 5,871 million, Food, beverages and tobacco: 1,966 million,
 23

Manufactured goods: 511 million, Raw materials other than food and fuel: 378 million, Others 250

million. Mineral fuels, food products and live animals (coffee, bananas, flowers, fruit, shrimp,

white corn, sugar, vegetables) accounted for 87.2% of Colombian exports to the European Union

in 2011. There are therefore numerous opportunities for export diversification towards the

European Union, such as manufactured goods (soaps, cosmetics, footwear, clothing, paper), whose

percentage of total exports is less than 5%, and raw materials other than products foodstuffs and

fuels (emeralds, tobacco).

Imports of Colombia in 2011: origins

The United States remains the main exporter of products to Colombia, with more than 13,000

million dollars in 2011, followed by China with 7,665 million, which in 2011 displaced for the

first time Europe as second trading partner. The European Union exported products worth

approximately US $ 7.2 billion in 2011 to Colombia. The four largest European countries

supplying Colombia are Germany, France, Italy and Spain. Colombia mainly imports machinery

and technology: Industrial machines and vehicles, assembled or not, make up the first chapters of

Colombian imports. Colombia mainly imports assembled vehicles, automatic communication

centers, newspaper and cardboard, iron and steel plates and tubes.

Major Foreign Investment Sectors in Colombia

Oil Sector: 5,083 million, Mining and quarrying including coal: 2.546 million, Commerce,

restaurants and hotels: 2,311 million, Transport, storage and communications: 1,689 million

Manufacturing: 792 million, Others: 1,183 million. Spain is the first source of workers'

remittances, with more than ten thousand five hundred million dollars from 2005 to 2011; three

hundred million more than the United States.

THE COLOMBIA - EUROPEAN UNION TRADE AGREEMENT

 24

Trade relations between colombia and the eu are based on stability, legal certainty and

predictability. however, the trade agreement signed with the european union not only seeks to

strengthen strictly trade, but also contributes to the consolidation of democracy, respect for human

rights, the fight against poverty, increased employment in decent conditions, commitment to the

environment and sustainable development. the agreement ratifies the commitment to comply with

international standards in all matters covered, including multilateral guidelines, that will enable

the conclusion of the Doha Round in the framework of the World Trade Organization (WTO) in

the future.

Non-agricultural markets: Colombian products will be able to enter the EU without any tariff

since the entry into force of the Agreement, while European products should expect a transition

period of 10 years to be able to enter duty-free in Colombia.

Agricultural markets: An important part of agricultural products will be able to enter the

European market with a zero tariff from the entry into force of the Agreement, such as flowers,

roasted coffee and coffee preparations, crude oil and refined palm, most fruits and vegetables, most

of the cocoa and tobacco products. However, a number of more sensitive products will be subject

to gradual or contingent liberalization, such as bananas, sugar, beef, etc.

Technical barriers to trade: TBT When certain institutional or legal instruments, such as a

standard, technical regulation or procedure to assess product conformity, make international trade

difficult, we are faced with technical barriers to trade. This intensification of regulatory policy to

the raising of living standards around the world, which has driven the demand for safe and high

quality products by consumers, and the increasing problems of water, air and soil pollution that

have led to modern societies to look for products that are not harmful to the environment. Sanitary

and phytosanitary measures: Sanitary and phytosanitary measures are prominent in the Colombia-
 25

European Union Agreement, with the aim of "protecting the life of humans, animals and plants in

the territory of the parties and to facilitate trade between the parties in the field of sanitary and

phytosanitary measures ".In the Colombian case, surveillance and control are jointly exercised by

the Colombian Agricultural Institute (ICA) and by the National Institute for Drug and Food

Surveillance (INVIMA), according to the competencies assigned to each institution by Colombian

law.

Trade defense instruments: The main mechanisms for altering the purpose of trade agreements

have been the management of prices lower than those common in the domestic market, public

subsidies, and temporary import bans. In this regard, there are three main trade defense

instruments: anti-dumping measures, anti-subsidy measures and safeguard measures.

Anti-Dumping Measures: The WTO defines dumping as the situation that occurs because a

company exports a product at a price below that which would normally be applied in the market

of its own country, or below the cost of production price. Is it unfair competition? The WTO

wonders, whose Anti-Dumping Agreement does not issue any judgment.

Countervailing Duties: The WTO condemns the use of prohibited subsidies and regulates

measures that countries can take to counteract their effects. For this purpose, it is envisaged that a

country may use the WTO dispute settlement procedure to try to eliminate or prohibit a prohibited

subsidy.

Multilateral safeguard measures: In the context of the WTO, a temporary ban on imports

entering a country is considered a safeguard measure when it is considered to be threatened by an

excess of imports of a particular product, provided that lead to injury or threat of serious injury to

domestic production. The Agreement contains a specific chapter where the parties undertake to

facilitate the temporary stay in their territories of persons in brief business visits as well as to
 26

Colombian service providers who have been contracted to provide a service in the European Union

to an end consumer (architecture, engineering, medical services, research and design, market

research, trade fairs, tourism ...) and to liberalize current payments and capital movements, which

will benefit the free circulation of services, investments and establishment.

Public procurement: Public procurement must follow transparent and open procedures,

according to the Colombia-European Union Trade Agreement, and ensure that there are essential

conditions for competition so that suppliers can compete on equal terms and without

discrimination. Colombian companies will receive free access, for example, to European public

procurement by national governments for railways and gas, as well as works concessions.

European operators will also benefit from access to Colombian contracting at central, regional and

municipal level.

Rules of origin: The WTO describes the rules of origin as the criteria necessary to determine

the origin of a product. The relevance of the information is that tariffs and restrictions on imports

may change depending on the origin of the imported products. The Agreement on Rules of Origin

was established under the WTO in order to achieve the harmonization of non-preferential rules of

origin and to ensure that such rules do not themselves create unnecessary barriers to trade. The

Agreement established a work program for the harmonization of rules of origin in conjunction

with the World Customs Organization (WCO). Where two or more countries have participated in

the production of the product, the origin attributed to the country where the last substantial

transformation took place. There are three assumptions: that after the transformation a change of

tariff heading occurs; that previously specified transformations take place; or that the value of non-

originating materials is below the established limit. Annex II to the Colombia-European Union

Trade Agreement provides that products originating in each Party shall be considered as
 27

originating products wholly produced in the European Union or in Colombia. Intellectual

Property: The Colombia-EU Trade Agreement guarantees an adequate and effective level of

protection of intellectual, industrial and commercial property rights, as well as other rights covered

by the TRIPs Agreement, for to reduce distortions and obstacles to trade, to promote innovation

and creativity and, at the same time, to stimulate investment and economic development.

Geographical indications: the geographical indication refers to the name of the place of origin

of the products Geographical indications give us information about the original place of

production. It is worth remembering that many of these products have a significant trajectory in

the national and international markets that make them well known. National and regional

legislations have been particularly concerned in recent decades in the protection of appellations of

origin. European laws protect this designation if there is a link of the product to the geographical

environment and if at least one of the stages of production, processing or processing takes place in

the geographical area.

Trade and sustainable development: Sustainable development involves seeking progress and

strengthening its three basic pillars - economic development, social development and

environmental protection - at the national and international levels. The Johannesburg Declaration

on Development 2002, which states that countries have a collective responsibility to promote and

strengthen economic development, social development and environmental protection,

interdependent and synergistic pillars of sustainable development at the local, national, regional

and global levels. seeks to reinforce the commitment of the parties to the effective implementation

of their own national labor laws to ensure fair trade conditions and to recognize the principles of

decent work of the ILO and their relevance in the field of trade. With regard to climate change, the

Colombia-European Union Trade Agreement express reference to the United Nations Framework
 28

Convention on Climate Change and the Kyoto Protocol as the parties recognize that climate change

is a common and global concern that requires the broadest possible cooperation of all countries

and their participation in an effective and appropriate international response,

Human rights and non-proliferation clause of weapons of mass destruction: The European

Union included calls for peaceful resolution of conflicts in its key documents. In this case, he also

requested to include clauses on human rights and non-proliferation of arms, which are now part of

the Trade Agreement. These clauses are not very common in this type of agreement and that the

EU systematically incorporates in its international agreements, since they are a success for the

benefit of its development, Colombia and the European Union are committed to respect for

democracy, the State of Law and human rights.

The human rights clause is accompanied by a provision of suspension that allows, as long as

there is a violation of the clause contained in this clause, the immediate and unilateral adoption of

appropriate measures. These include suspension of trade preferences granted by the Agreement,

and even complete suspension of the Agreement.

OPPORTUNITIES OF BUSINESS BETWEEN COLOMBIA AND FINLAND

In 2010 the Finnish import of Colombia was 67 million euros. Finnish export to Colombia was

53 million. During 2012, 15 Colombian companies exported their products without miners to

Finland for more than US $ 10,000. Products that are exported. Taking as reference Finland's

investment trends in the world and in Latin America, it can be determined that the sectors with the

greatest opportunities for promotion and success in Colombia are: Communications, Software and

IT Services, Metalworking, Agribusiness and the Fashion System.

Cali and the Valle del Cauca have opportunities tostrengthen trade and business with Finland, on

e ofEurope's most economically and social of the planet.According to the Ambassador and Charg
 29

é d'affaires of thatnation in Colombia, Hannu Ripatti, those possibilities are inthe export of garm

ents, cosmetics based on naturalproducts, shoe leather, exotic fruit and confectionery.

EXPORT FROM COLOMBIA PRODUCTS THAT ARE IMPORTED

Minerals like iron Renewable energy
Colombian coffee Communication technologies
Cacao

OPPORTUNITIES OF BUSINESS BETWEEN COLOMBIA AND FRANCE

In 2016, total exports to France grew 35%, from US $ 110.4 million in 2015 to US $ 149.1 million.

It makes France the eighth most important market in the European Union and the foreign buyer

number 31 of Colombia.

PRODUCTS THAT ARE

EXPORT FROM COLOMBIA
IMPORTED
Colombian coffee Medicines
Crustaceans Machinery
Spare parts: Auto parts, engines,
Fruits
vens, centrifuges.
Extracts and essences of coffee Makeup
Sugar cane Pesticides
Textiles Vaccine
Coal

In Colombia there are 180 French subsidiaries. He is the first foreign employer with more than

100.000 direct employments in Colombia. These companies bill more of US$15.000 million. The

biggest French companies in Colombia are: Casino - success, Renault-Sofasa, Sodexo, Veolia-

proactive, Sanofi-Genfar, Pernod-Ricard, L'Oréal-Vogue, between others.

 30

Lately companies have come to Colombia as Decathlon (sports shops), I am urgent (laboratory

specialized in cicatrization that Gerco acquired), Natixis (investment bank that finances projects

of infrastructure), Vinci (construction that gained the project Bogota-Girardot), RCI Pays in the

frame of an association with Bbva. In addition, the hotel chain Accor has an ambitious plan of

development in Colombia with the opening of some hotels in the next years.

OPORTUNITIES OF BUSINESS BETWEEN COLOMBIA AND GERMANY

Germany was the direct destination of 7.6% of Colombia's agri-food exports, the most

important industries in the country are related to chemical producers, vehicles, machine tools,

electronics and shipbuilding. During the first half of 2016, 291,140 tonnes were exported to

Germany, corresponding to US $ 235.67 million in FOB value.

Export from Colombia

Fruits
Aromatic Herbs
Textile
Handicrafts and other manufactures

Germany more sells to Colombia they are pharmaceutical, chemical products, machinery and

vehicles. Between January and November, 2015, the imports from Germany reached the US$

2.100 million. The exports from Colombia to Germany (January - November, 2015), fell 20 per

cent (to US$ 1.470 millions) according to information of the Agency of Statistics of Germany.

This justified itself for the fall in the oil price.

At this moment there are almost 200 companies with the German capital in Colombia.

Additional, it is between 300 and 400 representatives of German brands. Colombia turns into a

developed country. Being present in almost all the sectors. Principally in the self-propelled sector,
 31

in machinery, in construction, logistics and infrastructure. Likewise, we possess gastronomic

companies and of tourism.

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http://www.francia.net/poblacion-de-francia/

 Banco Santander. (2017). Datos de libre acceso del Banco Santander. Recuperado de

https://es.portal.santandertrade.com/analizar-mercados/alemania/presentacion-general

 Embajada de Finlandia , Madrid (2017). recuperado de

http://www.finlandia.es/public/default.aspx?nodeid=36866&contentlan=9&culture=e

s-ES
 32

 Fundación universitaria, Madrid, Cultura y tradiciones en Finlandia. recuperado de

http://www.universia.es/estudiar-extranjero/finlandia/vivir/cultura-tradiciones/145

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negocio

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negocio

 Fundación Universitaria, Madrid, Cultura y Tradiciones en Alemania. Recuperado de

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negocio

 Copyright, (2009) Máster en Comercio y Finanzas. Recuperado de

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economia

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 33

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