A successful trade mission to Colombia, South America's fastest growing economy and an exciting export market for British business, drew to a close yesterday.
The mission was led by former government minister, Kenneth Clarke MP, in conjunction with London Chamber of Commerce (LCCI) and sponsored by Heathrow. It saw firms from several sectors including infrastructure, design, the built environment and solar energy meet with potential trading partners and identify new business opportunities. It also saw the signing of an MOU between the London Chamber of Commerce and its counterpart, the Bogota Chamber of Commerce, promising to bring closer dialogue and support to businesses in the UK and Colombia, particularly SMEs.
Colombia is the third largest economy in Latin America, with strong macroeconomic growth, political stability and increasing global influence. Prospects for business were boosted in 2014 when Deputy Prime Minister Nick Clegg announced a new £4bn trade and investment target by 2020, alongside the first direct flight between the UK and Colombia in nearly a decade. With over 70 British businesses currently operating in Colombia and many more seeking to access the market, the route, operated by Avianca, has been a star performer at Heathrow.
Building on the success of the flight from Heathrow to Bogota, talks are now underway to increase the service from four times weekly to a daily direct this summer. Research has shown that one of the key factors to increasing trade with emerging markets is a direct air link, with up to 20 times more trade possible when there is a one. Independent analysis by Frontier Economics assesses that the route increase could create 400 jobs for the UK economy and an additional £111 million in economic benefit over the next ten years, not to mention the benefits to the Colombian economy in encouraging investment and tourism.
Heathrow has been full for over ten years and as a result, Avianca had to wait five years for its slot. With expansion, Heathrow could add up to 40 new routes to key markets currently un-served, generating a potential £211bn in economic benefit and up to 180,000 new jobs across the whole of the UK.
Trade Mission Leader, the Rt Hon Kenneth Clarke CH QC said:
"I am delighted to have led this trade mission. The UK is keen to promote access to emerging markets for British business, and direct air links are crucial in achieving that. I have always thought Colombia is a very attractive and growing economy, where the level of investment has historically been less than it should be. The new route between Heathrow and Bogota means the market is now far more accessible. This mission shows the real trade opportunities that connectivity presents both for Colombian and British firms."
Clare Harbord, Corporate Affairs Director at Heathrow, said:
"We are proud to have supported this trade mission. As the UK's only hub airport, Heathrow's role is to connect Britain to the world, connect exporters to markets and to connect investors to businesses looking to grow. Avianca's new route to Bogota has been one of our star performers, operating at 80% full in its first year. With research showing that daily, direct flights are one of the key factors in driving twenty times more trade with emerging markets, we hope the route will soon move to a daily departure, giving the level of connectivity businesses require to turbo-charge trade."
Peter Bishop, Deputy Chief Executive of LCCI and Deputy Mission Leader said:
"The Colombian investment climate has been transformed in recent years, with opportunities for business now in good supply. LCCI will only run trade missions to countries where there are direct flights, and throughout this trip businesses have told us how their trade potential has grown as direct result of the link between London and Bogota.
"This route is just one example of the way in biliateral trade can be improved. I have used this mission to urge the Colombian authorities to engage in the ATA Carnet network which provides a 'passport for goods' for trade fairs and exhibitions, as well as samples and professional equipment, as a signal to the world that Colombia is open for business."
Maria del Pilar Alfaro, Director of the Bogota Chamber of Commerce, said:
"The UK Multisectoral Trade Mission in Colombia represents an opportunity to strengthen cooperation ties, trade and inter-agency relations. The signing of the Memorandum of Understanding between the London Chamber of Commerce and Industry and the Bogota Chamber of Commerce will allow greater information and good practice exchange between companies and new public-private partnerships opportunities that will revitalise trade and facilitate the business environment. In this context, direct air connectivity between Bogota and London is fundamental."
Robert Carr, Managing Director of one of the mission delegates Tudor Exports, which sells photographic paper and chemicals in over 30 countries spanning four continents, said:
"As a one hundred percent export business I am acutely aware of the vital role easy, direct access plays in developing business prospects abroad. You can't 'do' a new market by teleconference – you need to go there in person. That‟s why connectivity is crucial in forging business relationships. This mission has been incredibly valuable in enabling me to explore export opportunities for my firm in Colombia, and I look forward to building on the contacts I have made through many return visits to Colombia in the future."
