Consequences and opportunities of the reactivation of the border between Colombia and Venezuela
The reopening of the border between Colombia and Venezuela, after being closed for more than two years, has been positive news for many businesses in both countries. Although there are some challenges to face, the opportunities presented are significant for those who want to do business in the region.
Firstly, the reopening of the border represents a great opportunity for businesses in both countries that want to resume trade and investment. During the last few years, businesses on the border have suffered due to the closure and travel restrictions that limited their business opportunities. Now, with the reopening, there is great potential for businesses in these countries to explore new business opportunities and re-establish lost commercial relationships.
For example, in 2008 trade between Colombia and Venezuela achieved results that have not been surpassed to this day. Venezuela was the second largest destination country for Colombia’s exports, accounting for 16.2% of the country’s total exports for that year. Between these two countries, the figure for that year reached over 7 billion dollars in trade.
Although the figure does not approach this number today, opportunities have increased compared to the last few years when the borders were closed. As of 2021, more than 221 million dollars had been traded between the two countries.
In this way, important international trade relations have been re-established, where products such as food, beverages, tobacco, chemicals, plastics, iron, steel, animals and their products, fuels, and more have been exported from Colombia to Venezuela. And, from Venezuela to Colombia, iron, steel, machinery and electrical appliances, cotton, plastics, animal or vegetable oils, paper, cardboard, and much more have been exported.
However, there are also challenges to face. One of the main concerns is security. The border between Colombia and Venezuela has historically been a problematic area, with security issues and drug trafficking. Companies operating in the region must take these challenges into account and take measures to protect their employees and assets.
Despite these challenges, the reopening of the border also presents many opportunities for businesses. Some of these are:
- Access to new markets: the reopening of the border means that businesses now have access to a larger market. Companies in Colombia can expand their operations in Venezuela and vice versa.
- Cost reduction: the opening of the border can also reduce costs for businesses in both countries. Companies can buy and sell goods and services without having to pay additional tariffs and taxes, which can reduce production costs and increase profitability.
- Seizing new opportunities: this reopening can also create new opportunities for businesses. They can explore new markets, products, and services that were not available before the border closure.
- Greater regional integration: the reopening can also promote greater regional integration. Companies can work together to take advantage of business opportunities in the region and build a stronger economy.
In conclusion, the reopening of the border between Colombia and Venezuela presents both challenges and opportunities for businesses. While security remains a significant issue, the opportunities to expand businesses, reduce costs, and seize new opportunities are significant. Companies that are willing to take measures to mitigate risks and take advantage of opportunities can succeed in this new era of commercial relations between both countries.
References
http://www.comvenezuela.com/asi-va-el-comercio
https://www.dane.gov.co/files/investigaciones/boletines/exportaciones/bol_exp_dic08.pdf
