US companies may delay Colombia investments over government comments, industry body says

Ricardo Triana, director of the Council of American Firms (CEA), poses for a photograph in Bogota, Colombia August 23, 2023. REUTERS/Nelson Bocanegra Obtain Licensing Rights

BOGOTA, Aug 23 (Reuters) – U.S companies functioning in Colombia are not seeking to pull out of the South American state, but comments and programs set ahead by the authorities could see them postpone expense conclusions, a organization affiliation stated on Wednesday.

Previous week President Gustavo Petro, Colombia’s initially leftist leader, stated he would renegotiate Colombia’s cost-free trade agreement with the United States, though two of his ministers later on created responses suggesting a softer stance.

The problem is remaining watched intently by U.S firms, reported Lorena Guarnizo, head of company issues for the business group the Council of American Firms.

That form of remark “quickly benefits in a postponement to an financial commitment conclusion or it can sluggish down that kind of detail a bit,” she claimed.

Foreign immediate financial investment in Colombia hit $8.53 billion amongst January and July, up 22.6% versus the year-before period of time, according to preliminary figures from Colombia’s central lender.

“The message from the businesses is that they are nevertheless in the nation, they’re even now committed to Colombia, no a person is stating they want to go away,” stated Ricardo Triana, director of the CEA.

But providers are seeking to set up strains of conversation with the Petro administration to get the job done out exactly where they can maintain developing and investing, Triana included.

Petro’s authorities is pushing controversial health and fitness and pension reforms in Congress and searching to resubmit a labor reform that was turned down during the prior legislative session.

The prospective wellness reform, which seeks to extend access and elevate healthcare employee salaries, is specially appropriate to some 25 U.S. health care organizations which belong to CEA, Triana said.

“There’s definitely uncertainty pertaining to this wellbeing reform, how it will switch out, what will be authorized,” he stated, including that a deficiency of regulatory management was also lead to for worry.

Colombia’s INVIMA food and prescription drugs regulator has not experienced a director for a lot more than a year, Triana reported.

“They are subjects that surely stress the sector,” he included.

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