Happy hour for local commerce in Colombia borders due to devaluation

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It was stated by Eduardo Sarmiento, director of the economic research center of the Julio Garavito University, who added that "devaluation is not a good way to promote trade at the borders."

In Cúcuta, the high point of Colombo-Venezuelan smuggling is being nourished by several local factors such as the exchange differential with Colombia and the price control exercised by the Nicolás Maduro government.

According to the specialists, Venezuelans take products with price control and sell them in Colombia at much more competitive prices than the local one. With the commercialization, national buyers save some pesos, but the money received by Venezuelans when making the visa change is a very favorable return.

However, José Miguel González, executive director of the Chamber of Commerce of Cúcuta, says that "during the last 20 days, there has been a stabilization of the devaluation that had been between the bolivar and Colombian peso." He added that "the practice of smuggling products continues to be very critical at the border. Fuels, primary products, and medicines are the most common and retable. However, policies developed by both countries have decreased this practice compared to previous years. "

Other borders

In Ecuador, some border provinces have been declared as "depressed zone," due to the depreciation of the Colombian peso against the dollar, reducing the competitiveness of Ecuadorian goods, generating another quarter of an hour for local commerce.

The Colon Free Trade Zone, in Panama, has also been affected, according to Eduardo Cristo, executive president of the Colombo-Panamanian Chamber of Commerce, especially "due to the restrictions imposed by the Colombian Government on Panama and the high devaluation of the Colombian currency."

The president of the Colombo-Peruvian Chamber of Commerce and integration, Hernando Otero, states that both currencies had had substantial devaluations, what he has done is that no market is specifically benefited, "adding that" trade with Peru is very complementary, which makes although the products become more expensive, do not stop trading. "

About smuggling, Otero says that this problem among the countries comes mainly from Ecuador and that it takes place in the ports of Putumayo.

Commercial opportunities between Leticia and Tabatinga

Francisco Solano, executive director of the Colombo-Brazilian Chamber of Commerce, says that on the border, "they have been working so that Colombian companies take advantage of the market opportunities that exist between the cities of Leticia, Tabatinga, Manaus, and Iquitos." According to Solano, "this is a strategic point for international markets, plus there is a great opportunity for fluvial transportation of goods that is cheaper than air."

The opinions

José Miguel González

Executive Director Chamber of Commerce of Cúcuta

"During the last 20 days, there has been a stabilization of the devaluation between the bolivar and Colombian peso."

Francisco Solano Suárez

Executive Director of the Colombo-Brazilian Chamber of Commerce

"We want Colombian companies to take advantage of the opportunities in Leticia, which is a strategic point for international markets."

#Commerce #ColombianBorder #Devaluation #PriceControl