LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

October 7, 2022

How Much Will the Border Reopening Boost Andean Trade?

The reopening of the Colombia-Venezuela border could lead to billions of dollars in trade,according to Colombia’s commerce minister. // File Photo: Colombian Government.

Q

A

Luis Vicente León, president of Datanalisis in Caracas: “For Venezuela, the commercial opening with Colombia represents access to competitive raw materials, inputs and finished products in terms of price and proximity, and it generates a logistical opportunity for importing goods from the rest of the world, with a reduction in freight and transportation costs. For Colombia, it represents an expansion of the country’s natural market and an opportunity for complementarity in the areas of chemical and energy areas, which are very important for both countries. It also means a reactivation of the border areas and an opportunity to take business away from the mafias that control them today. Of course, the opening also presents challenges for both nations. In the case of Venezuela, which has serious infrastructure problems, economic imbalances and sanctions, the opening could be a competitive risk for its local businesspeople. However, the Venezuelan market is currently open and…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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