Florida-Colombia Trade Shows Signs of Recovery

 
Current Economic Situation
The Colombian economy suffered its worst recession in 70 years in 1999 and early 2000. GDP fell 4.5% in 1999, unemployment reached 19.5% in early 2000 and the fiscal deficit grew to about 5.5% of GDP. The level of extreme poverty grew from about 18% of the population to 20%, with much higher figures in rural areas. The causes of the recession were many: internal strife, rampant violence and disorder, and external shocks from low oil and coffee prices. Colombia's credit rating was lowered from investment grade and interest rates increased to 20%. GDP now stands at about $100 billion; 1999 exports totaled $15.7 billion, and the external debt was $32.4 billion.

Economic recovery began in 2000, due largely to reforms instituted by the Colombian government and supported by the International Monetary Fund and other institutions. Colombia signed a $2.7 billion extended fund facility loan with the IMF in 1999, and the United States is giving $1.3 billion to support poverty reduction, crop substitution and the war against drug production and trafficking under the Plan Colombia. The World Bank announced in September 2000 that over the period 2000-2002 it would contribute $1.4 billion to an international program jointly backed by the Inter-American Development Bank, the Corporaci�n Andina de Fomento and the Fondo Latinoamericano de Reservas. The program is expected to provide a total of about $4.2 billion in credits to help bolster Colombia's economy and ease the social impact of recession.

Florida Exports to Colombia - 1999 and First Semester 2000

In 1999, Florida exported $1.87 billion to Colombia. The top 20 exports represented only 46% of the total, a low proportion in comparison with other countries, suggesting great diversity in the export trade. In first semester 2000, Florida exported $823.7 million to Colombia, a decline which may signal a decrease in exports for the full year.

The biggest Florida export to Colombia in 1999 was automatic data processing machines, at $171.8 million, followed by transmission apparatus for radiotelephony ($109.2 million), parts and accessories for typewriters ($78.4 million) and machine parts for derricks, fork-lift trucks, conveyors, graders, etc. ($72.8 million). Of these, the last had the biggest share of total Florida exports (exports to Colombia/total Florida exports of that item), at 12.1%.

In first semester 2000, the top four exports were the same, but the third and fourth places were reversed from 1999. Only three new exports appeared in the top 20 exports: parts and accessories for tractors, craft paper and paperboard, and baby garments.

The top 1999 exports based on change in export value were: air- and spacecraft, with a $12.9 million increase (94.3%); turbojets, turbo propellers and other gas turbines, which increased by $11 million (48.2%); and railway freight cars, at $9.97 million (no prior period exports). The export with the biggest drop in value for 1999 was also one of the most important in absolute value: transmission apparatus for radiotelephony, which decreased by $105.9 million (49.2%). It was followed by electrical apparatus for line telephony, at -$48.7 million (61.6%); and parts for television and radio, at -$30.1 million (69.2%).

The top 2000 exports, based on change in export value, were: machine parts for derricks, fork lift trucks, conveyors, etc., with a $12.5 million increase (33.8%); synthetic filament yarn, which increased by $5.4 million (98.8%); and parts and accessories for typewriters, with growth of $4.95 million (13.1%). The three exports declining most in value in 2000 were also among the leading exports in absolute value: air- and spacecraft (-$16.6 million, or 70.7%); ADP machines (-$11.4 million, or 12.6%); and turbojets, turbo propellers and other gas turbines (-$9.2 million, or 48.6%). Refrigerators and freezers also showed a high percentage drop of 70% (-$5.2 million).

Florida Imports from Colombia

Florida imports from Colombia in 1999 totaled $1.49 billion. The top 20 imports accounted for $1.21 billion of the total, or 81.1%. Compared to exports, Florida imports from Colombia are much less diversified, reflecting a more typical relationship between the state and its Latin American trading partners. In first semester 2000, Florida imported $774.7 million from Colombia, indicating a probable increase in trade in 2000 compared to 1999.

The number one import from Colombia in 1999 was cut flowers, at $338.1 million. This single item represents 22.7% of total imports. In second place was pigments dispersed in nonaqueous media, at $160.9 million, followed by men's or boys' suits, jackets, trousers, etc., at $129.3 million, and unwrought gold, at $68.3 million (colloidal precious metals accounted for $56.7 million). Colombia's dominance in the cut flower market is reflected in the fact that Florida imports from that country represent 73.4% of total Florida imports of that item and 57.2% of total US imports.

Cut flowers remained Florida's top Colombian import in first semester 2000, growing by 22% ($210 million for the semester). The only new items among the top 20 imports were bed and table linens and travel goods, vanity, camera and binocular cases.

The imports with the largest increase in value in 1999 were: pigments dispersed in nonaqueous media (increasing by $121.4 million, or 306.8%); gold ($47.5 million); men's or boys' suits ($15.6 million, or 13.8%); Portland cement ($9.9 million, or 34.6%); and platinum ($9.2 million, or 515.1%). A more unusual item among the top ten imports was animal products and dead animals unfit for human consumption, which grew by 170.7% to total $9.6 million.

The Colombian imports that decreased the most were coffee (-$67 million, or 55.1%); articles of precious metals (-$48.8 million, or 83.4%); bananas (-$18.8 million, or 88.8%); and cut flowers (-$18.3 million, or 5.1%). Imports of antiques experienced the largest percentage decrease: 99.8%, or -$16 million.

The imports that increased most in value in first semester 2000 were: gold ($33.7 million, or 157%); colloidal precious metals ($32.7 million, or 205.2%); cut flowers and buds ($22.1 million, or 11.7%) and petroleum and oils ($11.7 million, or 92.5%). The first three items showed strong increases in value for a single semester. The largest percentage increase recorded among the top ten was in sweaters, pullovers and sweatshirts, which grew by 211.7% ($3.8 million). Decreasing the most in first semester 2000 were: pigments dispersed in nonaqueous media decreasing by (-$29 million, or 33.1%); coffee (-$16.5 million, or 18.5%); precious metal waste and scraps (-$9.3 million, or 96.8%); and women's or girls' slips or petticoats, etc. (-$8.7 million, or 50.3%). The largest percentage decrease among the bottom ten, based on decrease in import value for the semester, was in precious metal waste and scraps.

Observations
In 2000, Colombia gradually recovered from its severe recession in 1999. This recovery is reflected in the trade data (mainly among Florida imports) for first semester 2000. Gradual improvement is expected to continue in 2001 barring a major political or economic setback. Florida imports from Colombia in first semester 2000 were 52.1% of full year 1999, suggesting that Colombian imports for the year may grow above last year's levels. Florida's total trade with Colombia decreased slightly in 1998 and fell by 18% in 1999. That same year, Colombia dropped from fourth to sixth place among Florida's top ten trading partners. Some of this trade should be recovered gradually in 2000 and 2001.

The tables below show Florida and Colombia trade data for 1999 and first semester 2000.

(Note: If asked for password just press cancel)
Table Set 1 (Excel File)
Table Set 2 (Excel File)
Table Set 3 (Excel File)
Table Set 4 (Excel File)

  
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