Strengthening the U.S.-Colombia Bilateral Relationship: A Cornerstone for Mutual Prosperity

Over the years, the dynamic U.S.-Colombia partnership — consistently supported across bipartisan lines in the U.S. — has evolved to focus on mutual economic growth, disaster relief, and peacebuilding. This cooperation has bolstered Colombia's stability and enhanced greater regional security.

At the core of the U.S.-Colombia partnership is the U.S.-Colombia Trade Promotion Agreement (TPA), which has fueled growth and created opportunities for businesses and workers in both countries. Since it entered into force in 2012, the TPA has unlocked new market access, enhanced customs enforcement mechanisms, and facilitated robust trade and investment flows. By leveling the playing field for U.S. exporters — which previously faced disadvantages compared to Colombian exporters that benefited from market access under the Andean Trade Promotion and Drug Eradication Act (ATPDEA) — the TPA has opened doors in key Colombian sectors like agriculture and services.

The Importance of the U.S.-Colombia Trade Promotion Agreement (TPA)

For Colombian exporters, the TPA in turn has provided reliable and permanent access to the U.S. market, replacing the uncertainty of preference programs requiring periodic renewal. A notable example of how the TPA has delivered tangible benefits for businesses can be found in John Deere, a top U.S. agricultural equipment manufacturer. John Deere has seen its exports to Colombia grow by as high as 15% since the TPA's implementation.

This growth has not only expanded John Deere’s market presence but also supports American jobs in manufacturing and exports. Similarly, Baxter, a U.S. pharmaceutical company with a facility in Cali, Colombia, has used the TPA to cut costs and remove barriers. This has improved competitiveness and production, with 30% of Baxter’s output now destined for export. Baxter has also created as many as 1,500 jobs in Colombia. 

On the Colombian side, Cementos Argos, a leading cement producer, formed a strategic alliance with Colorado-based Summit Materials in 2024. Together, both companies have expanded production capacity to over 11 million tons of cement annually, operating 224 plants across the U.S. This partnership has helped propel Summit Materials to its status as the fourth-largest cement company in the U.S., supporting significant job creation and economic activity in both countries.

Additionally, Colombia’s vibrant flower industry, a leading Colombian export sector, has flourished under the TPA. In 2024 alone, Colombia exported $1.14 billion worth of cut flowers to the U.S., according to the U.S. Department of Agriculture. This industry not only supports thousands of jobs in Colombia, but also sustains employment in the U.S. through distribution, retail, and related services. 

Addressing Strategic Challenges 

Despite the myriad successes of the U.S.-Colombia partnership, significant challenges persist, particularly as China deepens its influence in South America. With substantial investments in infrastructure, energy, and other critical sectors, China has emerged as a formidable competitor in the region. Notably, Chinese companies account for almost 30% of the smartphone market in Colombia, where the country’s telecommunications infrastructure also relies heavily on Huawei equipment.

Chinese firms have been awarded key transportation and infrastructure projects, including the Bogota and Medellin metro lines, and the Hidroituango hydroelectric project, which received over $1.5 billion in Chinese investment. Sinovac and the Bogota Mayor’s Office also announced a partnership to build BogotaBio, an initiative to develop vaccines in Colombia. 

To counterbalance China’s expanding footprint, the U.S. must actively engage with both the Colombian government and private sector, fostering innovation, investment, and inclusive growth. Strengthening this bilateral partnership is not only vital for Colombia’s economic trajectory, but also for advancing U.S. strategic interests in the region. By prioritizing this relationship, the U.S. can ensure that Colombia remains a crucial ally in promoting democratic governance, economic resilience, and long-term prosperity across Latin America. 

Looking Ahead: Strengthening the Partnership 

Colombia's reindustrialization plans and focus on food security offer chances for deeper collaboration and export diversification with the U.S. The digital economy, including AI and cybersecurity, also present opportunities. Colombia's geographic position and strong institutions can further bolster U.S. supply chain resiliency and manufacturing. 

To fully realize these opportunities, Colombia must prioritize creating a business-friendly environment, fostering investor confidence and sustainable growth. The U.S. Chamber of Commerce’s U.S.-Colombia Business Council (USCBC) is dedicated to creating a stronger investment climate through partnerships with member companies and both governments.

To deepen engagement, the USCBC hosted a February 3 dialogue on Colombia’s political and economic outlook and recent bilateral developments. Additionally, the USCBC has several forthcoming initiatives, including a health-focused mission to Bogota and the VII Annual U.S.-Colombia Business Dialogue held in partnership with the National Business Association of Colombia — both in April — as well as a sustainability and energy forum in the third quarter of 2025. 

The USCBC stands ready to support ongoing bilateral dialogues and promote innovative solutions powering the U.S.-Colombia partnership. Together, both countries can build on their shared values and strategic interests, ensuring mutual prosperity and strengthening bonds for years to come. 

About the authors

Cesar Vence

Cesar A. Vence is a Senior Director for the Americas at the U.S. Chamber of Commerce and serves as Executive Director of the U.S.-Colombia Business Council (USCBC).

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