Venezuelan-Colombian Trade: A Cautious Comeback with Room to Grow

By Enrique Cheang, E.C.V. & Asociados

After years of frosty relations, Colombia and Venezuela are cautiously rekindling their trade ties. The Colombian Association of Foreign Trade (Analdex) reports a promising start, with exports to Venezuela reaching a whopping USD 898.5 million from October 2022 to January 2024.

This is good news, but it's important to keep things in perspective. Total trade between the two countries in 2023 reached USD 804 million, reflecting an 8.7% increase from the previous year. While this marks the highest level since 2016, it falls far short of the golden years between 2000 and 2015, when trade averaged a healthy USD 3.1 billion.

The Colombian Ministry of Commerce, Industry and Tourism (MinCIT) had ambitious goals for 2023, aiming for an exchange between USD 1.6 billion and USD 1.8 billion. Unfortunately, reality fell short, reaching only half of the target.

However, there's reason for optimism. January 2024 saw a significant surge of 21.7% compared to the same month in 2023. This positive trend suggests that bilateral trade could even hit the coveted USD 1 billion mark this year.

The key to unlocking this potential lies in building trust and providing guarantees for businesses on both sides. This remains the biggest obstacle on the path to fully restored trade relations.

Colombia and Venezuela have the chance to rewrite their trade narrative. With continued efforts and a focus on fostering trust, they can tap into a lucrative partnership that benefits both economies.