The Chemical, Petrochemical, Plastics, Rubber, …acoplasticos.org/acceso_clientes/imagenes/perfil19.pdf1 PROFILE AND SECTORAL EVOLUTION IN COLOMBIA The Chemical, Petrochemical, Plastics,

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PROFILE AND SECTORAL EVOLUTION IN COLOMBIA

The Chemical, Petrochemical, Plastics, Rubber, Fiber, Paints, and Inks Industries from 2015 to 2017

Plásticos en Colombia has tra-ditionally shown the develop-ment of the production chains for the plastic, rubber, synthetic fibers and coatings, paints, and inks, including raw materials and chemical inputs, over the past 3 years. In the current version, the analysis covers the period from 2015 to 2017. To make it easier to understand the sector’s per-formance, an initial reference is made to the performance of the most significant global and do-mestic economic factors that have acted as framework for the Colombia’s production activities over the same period alongside an outlook for 2018.

The basic information used in this article has been published by the International Monetary Fund

(IMF), the National Statistics Ad-ministration Department (Depar-tamento Administrativo Nacional de Estadística - DANE), the Cen-tral Bank (Banco de la República), the Ministry of Finance and Public Credit (Ministerio de Hacienda y Crédito Público), and the National Tax and Customs Directorate (Di-rección de Impuestos y Aduanas Nacionales - DIAN).

1. GLOBAL ECONOMIC PERFORMANCE

The recovery of the global eco-nomy began in May 2016 and con-tinued in 2017, especially in Euro-pe, Asia, and the United States. According to the average estima-tes by the IMF, the World Bank and the United Nations, during 2017

the world economy grew around 3% at market prices, greater than the 2.4% growth displayed during 2016, and the highest synchroni-zed rate reported since 2010. In addition, these entities expect glo-bal growth to be 3.1% on average, at market prices for 2018.

The main factors that have cha-racterized this recovery include: 1) the dynamics of international trade, backed by an increase in investment, especially in advan-ced economies; 2) higher manu-facturing production, especially in Asia; 3) an improvement in the confidence indicators; and 4) an improvement in the growth expectations for emerging cou-ntries that export raw materials, such as oil, metals and minerals as well as a high level of expan-

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sion of importing economies, such as China.

The acceleration of the world’s gross product during 2017 was due mainly to the increased sta-ble growth of several developed economies, although Eastern and Southern Asia are still the most dynamic regions in the world. The cyclic improvements in Argentina, Brazil, the Russian Federation, and Nigeria, as those economies emerged from the re-cession, also explain approxima-tely one third of the world’s rate of growth from 2016 to 2017. Never-theless, the economic benefits are still unequally distributed by country and by region.

In spite of the fact that many of the weaknesses derived from the world financial crisis are less pressing, the economic outlook still depends on changes to trade policies, on the world’s financial conditions, and on growing geo-political tensions. There are also structural obstacles, such as little growth in productivity, historically high debt levels, and little room for political maneuvering.

After the contraction in 2016, growth in Latin America and the Caribbean gained momentum in 2017, thanks to a favorable external environment and impro-

ved internal conditions. Growth is projected to become even more dynamic in 2018 and 2019, in general, throughout the region. In the short term, Mexico, Cen-tral America and part of the Ca-ribbean have benefited from the increased vigorous growth in the United States, although, at the same time, the possible implica-tions of the tax reform in that cou-ntry and the re-negotiation of the North American Free Trade Agre-ement stir uncertainties. In South America, the drive for growth co-mes from the end of the reces-sions in Argentina and Ecuador, the increase in the price of raw materials, and a more moderate inflation that has led to a relaxa-tion of monetary policies.

However, the economic ad-justment is still pending. In many countries, it is still necessary to move forward with fiscal conso-lidation to restore sustainability, adjusting the quality, the rate, and the composition of the fiscal ad-justment. In spite of the recovery that has taken place, the growth of the Latin American product is at risk of declining in the medium term. It is necessary to reinforce the institutional and policy fra-meworks, provide stimuli for pro-ductivity, expand trade, and rein-force finances to achieve solid,

lasting, and inclusive growth.

The rise in prices of raw materials has increased the rates of ex-change in South America. In the case of oil, the reference price for Brent reached USD 66.7 by the end of 2017. This sustained price increase is due to an impro-ved global growth outlook, the weather conditions that hurt the United States, a limitation to the production of oil as agreed by the Organization of Petroleum Exporting Countries (OPEC), and political conflicts in the Middle East. However, the prices for fu-tures contracts suggest the pos-sibility of a downward adjustment in the coming years.

Although the international out-look, in general, seems favorable for 2018, there are several risks that could have a negative impact on emerging economies such as Colombia´s. Those include: 1) tougher international financial conditions due to the continued normalization of monetary poli-cies in developed countries, and how financial markets adjust to the new reality; 2) the potential effects, especially on flows of capital towards emerging eco-nomies, of the tax reform in the United States; the decrease in corporate tax rates might lead to

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an increase in capital flows; and 3) the impact that recent protec-tionist measures imposed by the United States and other econo-mies, and the response of the affected trade partners, might have on world trade.

GLOBAL GROwth PROjECtEd FOR 2018 ANd 2019

According to estimates by the In-ternational Monetary Fund (IMF), revised in July 2018, the forecast is for increasing global growth from 3.7% in 2017 to 3.9% in

2018 and 2019, driven by a pro-jected recovery of growth in the economies of emerging and de-veloping markets, and by a mo-derate growth of advanced eco-nomies. The latter are expected to grow 2.4% in 2018 (similar to the growth in 2017) and 2.2% in 2019. The upward revisions vary by country, with less favorable perspectives for Japan and the euro zone, and positive ones for the United States.

For economies in emerging and developing markets, growth is

projected to accelerate from 4.7% in 2017 to 4.9% in 2018 and 5.1% in 2019. Although the high rate of growth is due mainly to the unin-terrupted economic vigor of the emerging economies in Asia, the projected growth increase is also the result of stronger favorable outlooks for exporters of raw ma-terials after three years of very weak economic activity.

Table No. 1 shows the annual percent variations in real global GDP and in some groups and countries, for 2016 and 2017, and forecasts for 2018 and 2019.

TABLE N° 1OVERVIEW OF PROJECTED PERSPECTIVES FOR THE WORLD ECONOMY

(Percent variation)

year-to-year

2016 2017projections

2018 2019

World product 3,2 3,7 3,9 3,9

Advanced economies 1,7 2,4 2,4 2,2

United States 1,5 2,3 2,9 2,7

Euro zone 1,8 2,4 2,2 1,9

Germany 1,9 2,5 2,2 2,1

France 1,1 2,3 1,8 1,7

Italy 0,9 1,5 1,2 1,0

Spain 3,3 3,1 2,8 2,2

Japan 1,0 1,7 1,0 0,9

United Kingdom 1,8 1,7 1,4 1,5

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Source: FMI – Outlook for World Economy – July 2018.1_/ Excluding the G-7 (Germany, Canada, United States, France, Italy, Japan, the United Kingdom) and the euro zone countries.2_/ in the case of India, the data and projections are based on the fiscal period, and the GDP for 2011 and later is based on GDP at market prices, taking the period of

2011/12 as a basis.3_/ Philippines, Indonesia, Malaysia, Thailand, and Vietnam4_/ Simple average of the rates of growth for import and export volumes (goods and services).

(Percent variation)

year-to-year

2016 2017projections

2018 2019

Canada 1,4 3,0 2,1 2,0

Other advanced economies1_/ 2,3 2,7 2,8 2,7

Economies in emerging and developing markets 4,4 4,7 4,9 5,1

Sub-Saharan Africa 1,5 2,8 3,4 3,8

Nigeria - 1,6 0,8 2,1 2,3

South Africa 0,6 1,3 1,5 1,7

Latin America and the Caribbean - 0,6 1,3 1,6 2,6

Brazil - 3,5 1,0 1,8 2,5

Mexico 2,9 2,0 2,3 2,7

Community of Independent States 0,4 2,1 2,3 2,2

Russia - 0,2 1,5 1,7 1,5

Excluding Russia 1,9 3,6 3,6 3,7

Emerging and developing economies in Asia 6,5 6,5 6,5 6,5

China 6,7 6,9 6,6 6,4

India2_/ 7,1 6,7 7,3 7,5

ASEAN-53_/ 4,9 5,3 5,3 5,3

Emerging and developing economies in Europe 3,2 5,9 4,3 3,6

Middle East, North Africa, Afghanistan, and Pakistan 5,0 2,2 3,5 3,9

Saudi Arabia 1,7 - 0,9 1,9 1,9

Information items

Low income developing countries 3,5 4,7 5,0 5,3

Global growth according to type of market changes 2,5 3,2 3,3 3,3

Volume of world trade (goods and services) 4_/ 2,2 5,1 4,8 4,5

Advanced economies 2,2 4,2 4,3 4,0

Economies in emerging and developing markets 2,2 6,7 5,7 5,4

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In its April 2018 report, the IMF stated that growth in Latin Ame-rica and the Caribbean was re-covering as a result of a sounder internal demand and a favora-ble world situation that has also been helped by the recovery of raw material prices. However, in its update of the economic outlook for July 2018, in light of the complicated perspective for the biggest economies in the region - Brazil, Mexico, and Argentina - the IMF lowered its

previous growth projection for the region for 2018 and, to a lesser degree, for 2019.

With respect to the economic outlook for the region, it is esti-mated that the aggregate GDP will increase 1.3% in 2017, 1.6% in 2018, and 2.6% in 2019.

Nevertheless, the projection in-dicates that investment will re-main below the levels displayed in other regions, which limits the

potential for growth. The increa-se in the economic risks over-seas, especially a turn towards more protectionist policies, and a sudden hardening of financial conditions around the world, would have a similar effect.

Table No. 2 shows the annual percent variations in real GDP growth for the Latin America and Caribbean region during 2016 and 2017, and their projections for 2018 and 2019.

Table N° 2Latin America and the Caribbean: Differentiated and more Difficult Economic Recovery

(growth of real GAP, percent variation)

Sources: IMF, database of Outlook for the world economy (WEO report); and calculations by IMF technical personnel as of July 2018.Note: regional aggregates are weighted averages of GDP with purchasing power parity.1_/ Includes Antigua and Barbuda, Bahamas, Barbados, Dominica, Granada, Jamaica, St. Kitts and Nevis, St. Lucia and St. Vincent, and the Grenadines.2_/ Includes Belize, Guiana, Surinam and Trinidad and Tobago.

2016 Est. 2017forecasts

2018 2019

Latin America and the Caribbean -0,6 1,3 1,6 2,6

Excluding Venezuela 0,1 1,9 2,3 2,8

South America -2,4 0,8 1,1 2,4

Excluding Venezuela -1,4 1,7 2,1 2,7

Central America 3,8 3,7 3,3 4,1

The Caribbean

Dependent on tourism 1_/ 1,6 1,3 1,8 2,2

Raw material exporters 2_/ -4,6 -1,5 0,9 1,0

Latin America

Argentina -1,8 2,9 0,4 1,5

Brazil -3,5 1,0 1,8 2,5

Chile 1,3 1,5 3,8 3,4

Colombia 2,0 1,8 2,7 3,6

Mexico 2,9 2,0 2,3 2,7

Peru 4,1 2,5 3,7 4,1

Venezuela -16,5 -14,0 -18,0 -5,0

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2. RECENt dEVELOPMENt OF thE COLOMBIAN ECONOMY, ANd OUtLOOK FOR 2018

As indicated by the Board of Di-rectors of the central bank (Ban-co de la República) in their report to Congress dated March 2018, the results for the national accou-nts for 2017 and the projections for the current year indicate that the deceleration of the product ended last year, and that during 2018 the Colombian economy will begin its recovery process. In addition, the decrease in the cu-rrent account deficit during 2017 and what is expected for 2018 suggests that the external balan-ce will continue to be adjusted. With respect to the behavior of prices, inflation during 2017 ten-ded to decrease and ended the year at 4.09%. Inflation is expec-ted to continue its convergence towards the 3% goal during 2018.

In 2017 the international price of oil increased for the second year in a row, and the country’s major trade partners exhibited more dy-namic economic growth.

The growth of the GDP during 2017 was backed by higher ex-ternal demand, more favorable

international financial conditions, and better trading terms.

Higher oil prices and the dyna-mics of external demand resul-ted in a lower deficit of the trade balance in dollars for 2017. The current account of the balance of payments continued its ad-justment, from -4.3% of the GDP in 2016 to -3.3% in 2017.

In 2017 the Colombian economy grew 1.8%, less than the figure for 2016 (2.0%), although the 1.6% growth of the internal demand was less than the previous year (0.5%), thanks, to a significant ex-tent, to the performance of inves-tments. In spite of the recovery of the national revenue during 2017, the growth was still low and, the-refore, the increase in expenditu-res was still weak.

OUtLOOK FOR thE RESt OF 2018

The forecasts prepared by the Mi-nistry of Finance and Public Cre-dit (Ministerio de Hacienda y Cré-dito Público)) and by the central bank’s (Banco de la República) technical team, suggest that the economic growth would be close to 2.7%. This assumes a price of oil (Brent reference) that would remain, on average, around USD 62 per barrel, and that external

demand would continue to reco-ver. Thus, a better dynamics of exports in dollars would help re-duce the current account deficit to 3.1% of the GDP. Investment in civil works, mainly in roads and in machinery and equipment, would be more dynamic. In addition, the decrease in the reference rates of interest that have already taken place should help the recovery of consumption and investment.

As to the performance of prices, at the end of the first quarter of 2018, the direct effect of the in-crease of the VAT on inflation should be diluted. Also, the ex-cess installed capacity in the eco-nomy should converge towards the 3% goal.

The annual projection of 2.7% of growth for the GDP during 2018 is consistent with the results of the economic growth displayed during the first quarter of the year. Although in this period, and in the original series, the GDP had an annual variation of 2.2%, the variation is 2.8% when calculated using the GDP series that co-rrects the information for seaso-nal and calendar effects.

2.1 ECONOMIC ACtIVItY

According to the GDP figures published by DANE in February 2018, the Colombian economy

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grew 1.8% during 2017, lower than the rate for 2016 (2.0%).

During 2017, the internal final demand grew 1.6% compared to 0.5% in 2016. This increase is explained mostly by increases in investment and in consumption, both private and public, espe-cially the latter. Household spen-ding increased 1.7% (1.5% in 2016) and government spending went up by 4.0% (2.4% in 2016), for an aggregate total consump-tion of 2.2% in 2017 compared to 1.7% in 2016.

With respect to the performan-ce of the gross capital creation, 2017 was a year during which the recovery (0.1%) compared to the drop during 2016 (-3.3%), was the result of an improved performance of its components. While investment in civil works (7.1%) and in machinery and equipment (3.6%) exhibited sig-nificant increases, investment in building construction (-11.3%) and in transportation equipment, decreased by (-5.0%).

For foreign trade, the results for 2017 show that the additional adjustment to the country’s cu-rrent account is explained, not by a decrease in expenditures, as it was two years ago, but by a recovery of external revenue that more than offset the growth in expenditures.

The country’s exports amoun-ted to USD 39.474 million, with an annual increase of 15.8% (USD5.395 million). The main factors that contributed to the in-crease in value were higher exter-nal sales of coal, oil, and its de-rivatives and, to a lesser degree, shipments of industrial products, coffee, bananas, and flowers.

Imported goods reached a total of USD 44.241 million, with an annual increase of 2.3%. This in-crease is explained by higher im-ports of inputs and capital assets for industry, transportation equi-pment, and consumer goods. A significant reduction in external purchases of fuels and lubricants was displayed since they are being produced in the Cartagena refinery (Reficar).

According to the 2018 Medium-term Fiscal Framework, publis-hed by the Ministry of Finance and Public Credit (Ministerio de Hacienda y Crédito Público) last June, as a result of the measu-res and strategies implemented by the national government, this entity is projecting an economic growth of 2.7% for 2018, driven by the sources of internal de-mand. With respect to foreign tra-de, exports are expected to grow by 1.4%, and imports by 1.1% compared to the previous year.

Table No. 3 shows the real GDP variations for 2016 and 2017, by demand component, reported by DANE (without seasonal effects and at constant prices), and the projection carried out by the Mi-nistry of finance in June for the current year.

Table N° 3REAL GDP BY DEMAND COMPONENT

Percent annual variation

Sources: 1_/ National Statistics Administration Department (Departamento Administrativo Nacional de Estadística)- DANE2_/ Ministry of Finance and Public Credit (Ministerio de Hacienda y Crédito Público)

ITEMANNUAL GROWTH 1_/ PROJECTION

2016 2017 20182_/

GDP 2,0 1,8 2,7

Total consumption 1,7 2,2 3,0

Households 1,5 1,7 2,9

Government 2,4 4,0 3,6

Total gross capital creation -2,7 0,1 0,7

Final internal demand 0,5 1,6 2,5

Exports -1,2 -0,6 1,4

Imports -7,3 0,2 1,1

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Table N° 4REAL GDP BY COMPONENT OF SUPPLY

Percent annual variation

As far as supply is concerned, in 2017 five of the nine areas of activity displayed positive growth - three of them above the growth of the economy. The growth of agriculture by 4.9%, financial and real estate services by 3.8%, and social, community and personal services, by 3.4% are worth no-ting. Retail, electricity, gas, and water increased by 1.2% and 1.1%, respectively.

In contrast, mine and quarry ex-ploitation was the sector with the largest decrease, 3.6% (-7.0% in 2016), followed by the manu-facturing industry, construction and transportation, storage, and communications, with decrea-ses of 1.0%, 0.7%, and 0.1%, respectively.

Although the total for the manu-facturing industry sector decrea-sed by 1.0%, the remaining ma-nufacturing decreased by 2.5% after excluding oil refining.

As shown earlier, the 2018 Me-dium-term Fiscal Framework is projecting an economic growth of 2.7% for 2018.

The supply components that will contribute the most to the greater dynamism of the economy will be industry, retail, mining, professio-nal activities, and information and

communications. In addition, the public administration will conti-nue as one of the sectors that dri-ve growth the most. The contribu-tion of these sectors will be offset by agriculture and construction, specifically, because their growth will be less than in 2017.

The manufacturing industry is ex-pected to boost in 2018, together with a higher growth in internal and external demand. This part of the economy will attain a growth of 1.7%, after the contraction that took place in 2017.

This acceleration is mainly due to the greater growth of the in-dustry, without refining, which will go from a contraction of 2.7% in 2017 to a growth of 1.5% in 2018, according to the estimates of the Ministry of Finance (Ministerio de Hacienda).

Table No. 4 shows the variations in the GDP for 2016 and 2017, by component of supply, and the projection for 2018, taken from the document produced by the Ministry of Finance.

Source: Ministry of Finance and Public Credit (Ministerio de Hacienda y Crédito Público), 2018 Medium-term fiscal framework.

ComponentAnnual growth Projection

2016 2017 2018

Agriculture 2,2 5,6 2,3

Mining -3,0 -4,3 -1,4

Manufacturing industry 2,8 -2,0 1,7

Electricity, gas, and water supply 0,0 0,8 1,5

Construction 3,0 -2,0 -3,4

Retail, transportation, and hotels 1,9 1,2 3,8

Information and communications -0,8 -0,1 3,5

Financial activities 6,6 6,9 6,1

Real estate activities 3,3 2,8 2,9

Professional activities -2,3 3,5 5,3

Public administration 3,6 3,8 3,4

Art, entertainment, and recreation 5,5 3,9 3,5

Taxes 1,2 4,3 3,5

Total GDP 2,0 1,8 2,7

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2.2 LABOR MARKEt

In 2017, the labor market displa-yed a slight decrease due to the poor dynamics of the economy during the year. The country’s to-tal unemployment rate was 9.4%, 02 percentage points above the figure for 2016. Thus, unemploy-ment remained at single-digit le-vels for the fifth consecutive year.

The performance in the 13 major metropolitan areas is similar to the national average, although the impairment was greater. This shows that the deceleration of the economy has had a greater effect on major cities than on the rest of the country.

With respect to employment by economic sector, for 2017 the bi-ggest contributions were 1.0% or 226,000 additional people, were made by: agriculture, (0.72 pp), industry, (0.39 pp) and real estate activities, (0.38 pp). In addition, the sector that made the biggest negative contribution to the varia-tion was retail (-0.44 pp).

in general, a better performance for the labor market is expected for 2018 in light of the forecast for economic growth. It is expected that 251,000 jobs will be created in 2018, the largest number crea-ted in the past 3 years. Thus, the

unemployment rate would remain stable at 9.4% for the national to-tal. This would mean that, for the 6th year in a row, the unemploy-ment level will be single-digit.

2.3 EXtERNAL BALANCE

After the heavy imbalance of the current account produced by the shocks severed by the economy during the past several years, 2017 brought an adjustment to the country‘s external accounts, continuing the trend that began in 2016.

Last year´s adjustment was mainly due to a recovery of ex-ternal revenue, especially from exports of goods, and to a les-ser extent, due to an increase in remittances and tourism. In fact, the results of the current accou-nt for 2017 show that the lower external deficit was due to an in-crease of almost 14% in revenue, greater than the 8.6% increase in expenditures.

This dynamic is expected to con-tinue during 2018, driven, to a sig-nificant extent, by the effects of the recovery of external demand of Colombian manufactured goods, and the performance of the inter-national price of crude oil.

The external balance in dollars for 2017 was characterized by:

A deficit of USD 10.359 million in the current account of the balan-ce of payments, which was lower by USD 1770 million than the fi-gure for 2016, and as a percenta-ge of the GDP, which decreased from 4.3% to 3.3%. This current deficit was financed using net capital revenue in the amount of USD 9.694 million (3.1% of the GDP), which includes a net accu-mulated international reserve of USD 545 million;

A decrease in the commercial deficit for goods in the amount of USD 439 million: FOB exports for USD 39.474 million, and FOB imports for USD 44.241 million. These amounts were higher by 15.8% and 2.3% than in 2016, respectively;

Direct foreign investment (DFI) in the amount of USD 14.518 mi-llion (4.7% of the GDP) increased by 4.8% compared to 2016. The distribution by economic acti-vity was as follows: mining and oil (30.4%), transportation and communications (23.9%), indus-try and manufacturing (15.6%), financial and corporate services (11.4%), retail and hotels (6.2%), and all other sectors (12.5%); and

The flows for investments in re-ceivables or portfolios represen-ted USD 7793 million, USD 1.114 million less than what was exhibi-ted the previous year.

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Correction of the external balan-ce is expected to continue as a result of an increase in revenue greater than the decrease in ex-penditures.

The forecast for the balance of payments during 2018 indica-tes that the deficit of the current account as a percentage of the GDP would be around 3.1%. This forecast based on international commodities prices higher than those recorded for 2017, and a more dynamic external demand due to the estimated growth of our major trade partners; growth in developed countries is expec-ted to continue and growth in most Latin American economies is expected to increase.

2.4 RAtE OF EXChANGE

The international price of the Dollar during 2017 had a mixed performance. During the first half of the year, the dollar had a sta-ble value, explained mostly by the low variability of the price of oil – Brent had an average price of USD 52.7 per barrel. During the second semester, the rate of exchange had two different trends: an initial depreciation re-sulting from the drop in the price of oil from June to July (around USD 48 per barrel, which led to the currency’s highest rate of ex-change for the year, at COL 3080. Towards the end of the year, the trend was the opposite: the Peso

appreciated due to the recovery of the price of oil which reached a maximum of USD 67 per barrel in December.

Thus, the average value of the currency for 2017 was COL 2,952 per dollar, representing an ap-preciation of 3.3% compared to 2016 (COL 3.052).

Overall, the progressive recovery of raw materials prices (espe-cially the price of oil) strengthe-ned Latin American currencies. The Brazilian Real was the most highly revalued currency in the region, with an appreciation of 8.3% from 2016 to 2017. In addi-tion, although to a lesser degree, the currencies in Chile and Peru displayed appreciations of 4.0% and 3.4%, respectively. In con-trast, the Mexican Peso had a depreciation of 1.1% due to the uncertainty created by the an-nouncement of measures and the new administration in the Uni-ted States.

So far until July, the performance of the Colombian peso has had a downward trend. This is explai-ned by high oil prices compared to recent years. In this respect, the average representative mar-ket rate (Tasa Representativa del Mercado – TRM) has remained below COL 2,900, reaching le-vels that had not been seen sin-ce 2015.

Given this international setting, and in the absence of strong external shocks, the Ministry of Finance´s forecast is that the average rate of exchange will be COL 2.874 in 2018, con-sistent with an average price of USD 67 per barrel for Brent, and the effects of the United States monetary policy on the Representative Market Rate. This rate of exchange means a nominal appreciation of 2.6% compared to 2017.

3. GLOBAL ANd SECtORIAL MANUFACtURING ACtIVItY

The main indicators for the global and sectorial manufacturing acti-vity in Colombia during 2016 are shown below. These are based on the annual manufacturing sur-vey (Encuesta Anual Manufactu-rera – EAM) conducted by DANE. The development of some varia-bles during 2017 is also shown, according to results of the most recent monthly manufacturing survey (Encuesta Mensual Ma-nufacturera) carried out by the same source1_/ in December.

1_/ DANE, in its duty of improving economic statistics in keeping with national and international stan-dards, redesigned and updated the Monthly Manufacturing Sample (MMS), currently called Monthly Manufacturing Survey (MMS), and has been using it to present the information since January 2015.

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The nomenclature used to des-cribe the characteristics and per-formance of the manufacturing industry in Colombia, the groups analyzed by Acoplásticos, defi-ned according to the Internatio-nal Standard Industrial Classifi-cation (ISIC) Revision 4 adapted by DANE, are those that include the manufacture of basic chemi-cal substances (201), other che-mical products (202), synthetic and artificial fibers (203), rubber goods (221) and plastic manu-factures (222)22_/.

Given the coverage of the ISIC Revision 4 groups, it has been deemed useful to complement the information about the econo-mic activity of the sector, traditio-nally presented in the annual ins-titutional publication Plásticos en Colombia, by including groups related to the preparation and weaving of textile products (131), manufacture of textile products, except garments (139), and foot-wear manufacture (152).

2_/ It should be noted that the stakeholders, in terms of the ISIC Revision 4, have different contents than ISIC Revisions 3 and 2, used in previous editions of this annual institutional publication from Acoplásticos, and there is no one-to-one relationship in all cases. Therefore, comparing the figures in a sequential analysis requires adjustments to avoid inaccurate con-clusions that fail to reflect the actual evolution of the sector’s productive activity.

Although the data from DANE’S annual manufacturing survey are gathered from industries with 10 or more employees and/or with a minimum production value33_/ and whose main economic ac-tivity defines its classification within the groups that are listed, the information from DANE, re-presents the general and specific manufacturing activity. In addi-tion, it is the main official source of reference.

3.1 MAIN VARIABLES IN 2016

3.1.1 GENERAL RESULtS

In the 2016 annual manufac-turing survey, information was obtained from 8,466 industrial facilities throughout Colombia, classified according to ISIC Re-vision 4 adapted for Colombia (ISIC Rev. 4 A. C.) in 56 industrial groups44_/, which employ a total of 726,261 people. Gross pro-duction amounted to COL 243/5 billion (USD 79,736.4 million of that year), with an intermediate consumption of COL 155.1 billion

3 _/ For 2016, annual production levels equal to or greater than COL 500 million (USD 163.750 mi-llion) of that year.

4_/ According to the criteria used by DANE to pu-blish the statistics for the sector, the information for 2014, 2015 and 2016 for group ISIC - 203 manufacture of synthetic and artificial fibers, is included in the group of other manufacturing activities.

(USD 50,799.8 million) and an added value of COL 88.4 billion (28,936.6 million).

Of the 8,466 industrial facilities, 71.3% were located in the me-tropolitan areas of Bogota D.C., Medellin, and Cali; 14.3% were located in Barranquilla, Buca-ramanga, Pereira, Manizales, Cartagena, and Cucuta, and the others, in the rest of the country.

Of the 56 ISIC Rev. 4 A.C. groups included in the survey, 18 covered 73.7% of the manufacturing faci-lities. The groups with the highest number of facilities were garment manufacturing, excluding leather garments, (10.2%%); preparation of other food products (8.2%), and manufacture of plastic pro-ducts (7.2%).

The main industrial groups, ac-cording to the value of their gross production were: manufacture of products from petroleum re-fining (16.7%), manufacture of other chemical products (7.1%), preparation of beverages (5.6%), preparation of other food pro-ducts (5.2%), manufacture of nonmetallic mineral products (4.7%), meat, fish and seafood processing and preservation (4.3%), and manufacture of plas-tic products (4.1%).

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The industrial groups with the highest share of employees were: garment manufacture, ex-cept leather garments excluding (10.3%), preparation of other food products (8.2%), manufacture of plastic products (7.6%), and non-metallic mineral products (5.0%).

In the total added value produ-ced, the most significant are the groups for beverage preparation (10.1%), other chemical pro-ducts (8.9%), nonmetallic mi-neral products (7.2%), products of petroleum refining (6.5%), preparation of food products (6.4%), pharmaceutical pro-ducts, medicinal chemical and botanical substances (4.7%), garment manufacturing (4.7%), and plastic products (4.4%).

Finally, it should be noted that, due to the importance of the in-dustrial sector for the national economy, DANE has implemen-ted a methodology to produce panel-type databases to be able to compare the results of the annual survey with the results from the previous year. Thus, the development of the main valua-bles in 2016 vis-à-vis 2015 indi-cates the following relationships: gross production, 6.3%; interme-diate consumption, 7.0%; added value, 5.1%; and personnel em-ployed, 1.5%.

SECtOR INdICAtORS

The main indicators of global and sectorial activity for 2016 are shown in Table No. 1. The table shows the economic variables in pesos and in current dollars, their absolute values, and the sector’s contribution to the nation’s ma-nufacturing activity for the selec-ted ISIC Rev. 4 A.C. groups.

3.1.2 ChEMICAL, RUBBER, ANd PLAStIC PROdUCtS

In 2016, chemical substances and products (ISIC groups 201 and 202) were manufactured in 564 facilities, 6.7% of the group surveyed, which, together, em-ployed 53,619 people, 7.5% of industrial jobs. The value of its gross production, 26,208.6 billion current pesos (equivalent to USD 8521.2 million), and their added value, 10,687.5 billion current pesos (USD 500 million) parti-cipated with 10.7% and 12.1%, respectively of the national totals for the manufacturing industry. The use of electricity was 1562.1 million kWh, equivalent to 9.9% of the electricity used by the manu-facturing industry in Colombia.

Rubber and plastic materials ma-nufacturing activity (ISIC groups 221 and 222) during that year

was carried out, respectively, by 95 and 606 facilities, with a total of 1.1% and 7.2% of the factories surveyed, with 4,804 and 55,322 employees, 0.7% and 7.6% of the people employed by the industry. The value of their gross produc-tion was, in order, 523 and COL 10,092.8 billion pesos (equivalent to 171.3 and USD 3305.4 million), with a contribution of 0.2% and 4.1% to the value of the country’s industrial production. The amou-nts of added value were 243.98 3897.6 billion pesos (equivalent to 79.9 and USD 1276.5 million), with contributions of 0.3% and 4.4% to the added value of the entire national industry. Electrici-ty use, measured in million kWh, was 4.2 and 1250.8, with a sha-res of 0.3% and 7.9% of the total electricity consumed by the ma-nufacturing industry.

Thus, the 4 categories —chemi-cal substances and products, rubber, and plastic— were res-ponsible for 14.7% of the facili-ties, 15.7% of the people emplo-yed, 15.0% of the value of gross production, 16.8% of the added value, and 18.1% of the electricity consumed by the manufacturing industry analyzed during 2016.

During that same year, exports of chemical substances and pro-

13

TABLE No. 1COLOMBIA: INDICATORS FOR THE CHEMICAL, PLASTICS, RUBBER, WEAVING AND SOME TEXTILE

PRODUCTS, FOOTWEAR, AND NATIONAL MANUFACTURING INDUSTRIES, 2016

Source: Acoplásticos based on data from the 2016 annual manufacturing survey by DANE for industrial figures. DANE, for export figures. DIAN, for import figures. 1 average rate of exchange for this year COL 3,053.42 per dollar (Banco de la República magazine).

ducts amounted to USD 2306.5 million, and rubber and plastic products together, reached to USD 549.3 million. With respect to ex-ternal industrial sales and total sa-les for Colombia, chemicals con-tributed 14.5% to the former and 7.4% to the latter; rubber and plas-

tic manufactured goods, together, contributed 3.4% and 1.8%, res-pectively. The aggregate partici-pation of chemicals, plastics, and rubbers, was 17.9% of the indus-trial goods shipped from Colom-bia, and 9.2% of the grand total of the country’s external sales.

In addition, imports of chemi-cals and rubber and plastic goods, together, amounted to USD,7376.8 million FOB, 18.2% of external purchases of indus-trial products, and,17.3% of the country’s global purchases. In-ternally, the sums of USD 5799.9

VARIABLE

THE EXCEL PREPARATION AND WEAVING

(ISIC 131)

OTHER TEXTILE

PRODUCTS (ISIC 139)

FOOTWEAR (ISIC 152)

"BASIC CHEMICALS (ISIC 201)"

OTHER CHEMICALS (ISIC 202)

RUBBER PRODUCTS (ISIC 221)

PLASTIC PRODUCTS (ISIC 222)

TOTAL INDUSTRY

Number of establishments

participation in total manufacturing (%)

113

1,3

178

2,1

277

3,3

158

1,9

406

4,8

95

1,1

606

7,2

8.466

100,0

total number of persons employed


17.397

2,4

20.620

2,8

16.925

2,3

10.858

1,5

42.761

5,9

4.804

0,7

55.322

7,6

726.261

100,0

Gross Production

(billions of pesos )

(millions of dollars )1


2.282,1

747,4

0,9

2.958,5

968,9

1,2

1.395,1

456,9

0,6

8.728,7

2.858,7

3,6

17.289,9

5.662,5

7,1

523,0

171,3

0,2

10.092,8

3.305,4

4,1

243.468,8

79.736,4

100,0

Added Value

(billions of pesos )



897,8

294,0

1,0

1.133,3

371,2

1,3

660,8

216,4

0,7

2.818,2

923,0

3,2

7.869,3

2.577,2

8,9

243,9

79,9

0,3

3.897,6

1.276,5

4,4

88.355,5

28.936,6

100,0

Electricity Consumption

millions of kwh


463,9

2,9

256,8

1,6

63,3

0,4

1.151,3

7,3

410,8

2,6

42,2

0,3

1.250,8

7,9

15.740,3

100,0

Exports


participation in industrials (%)

exports participation in country totals (%)

57,2

0,4

0,2

198,2

1,2

0,6

33,6

0,2

0,1

1.175,5

7,4

3,8

1.131,0

7,1

3,6

52,6

0,3

0,2

496,7

3,1

1,6

15.880,7

100,0

51,1

Imports


participation in industrials (%)

exports participation in country totals (%)

718,5

1,8

1,7

383,2

0,9

0,9

325,2

0,8

0,8

3.922,7

9,7

9,2

1.877,2

4,6

4,4

753,6

1,9

1,8

823,3

2,0

1,9

40.560,9

100,0

94,6

14

million for chemicals, and USD 1576.9 million for rubber and plastic manufactured goods re-presented, in that order, 14.3% and 3.9% of industrial exports, and 13.6% and 3.7% of the na-tional grand total of goods pur-chased overseas in 2016.

The figures for apparent do-mestic consumption (market) calculated on the basis of the data for the value of production plus imports minus exports, ex-pressed in millions of dollars, display the following results for 2016: basic chemical pro-ducts (ISIC 201), 5.606; other chemical products (ISIC 202), 6.409; rubber goods (ISIC 221), 872; and plastic manufactured goods (ISIC 222), 3.632.

3.1.3 wEAVING OF tEXtILE PROdUCtS, ANd MANUFACtURE OF tEXtILE PROdUCtS OthER thAN GARMENtS.

For the groups of textile product preparation and weaving (ISIC 131) and manufacture of textile products other than garments, (ISIC 139), the indicators for pro-duction in 2016 and their share in the country’s industrial totals are as follows: number of facilities surveyed by DANE, 113 (1.3%) and 178 (2.1%), with 17,397

(2.4%) and 20,620 (2.8%) people employed. Gross production rea-ched 2282.1 billion current pesos (0.9%) and 2958.5 (1.2%), equi-valent to 747.4 and USD 968.9 million, including added values for 39.3% and 38.3% of produc-tion, which contributed 1.0% and 1.3% to the added value for the entire manufacturing industry.

Foreign trade for these sectors in 2016 showed exports for USD 57.2 and USD 198.2 million in products from ISIC groups 131 and 139, with shares of 0.4% and 1.2% of our external sales of in-dustrial products, and 0.2% and 0.6% in global sales of goods from the country. Imports tota-led USD 718.5 million from ISIC group 131, and USD 383.2 from ISIC group 139, with contribu-tions of 1.8% and 0.9%, respecti-vely, both in industrial purchases and in general overseas purcha-ses of goods for the country.

Apparent estimated consumption of products from these groups, calculated as the sum of the va-lue in dollars of production and imports, minus exports, is 1409 and 1150 USD 4 million for the textile product preparation and weaving (ISIC 131) and manufac-

ture of textile products other than garments (ISIC 139), respectively.

3.1.4 FOOtwEAR

ISIC 152 groups includes the ma-nufacture of footwear of all types and materials, and its parts. The data for production in Colombia during 2016 and its share in the area of aggregates for the manu-facturing industry, were: number of facilities surveyed, 277 (3.3%); number of people employed, 16,925 (2.3%); gross produc-tion 1295.1 billion current pesos (0.6%) equivalent to USD 456.9 million, with an added value 47.4% of the production (0.7% of the industry total.

Exports for the sector were USD 33.6 million, while imports were USD 325.2 million FOB, repre-senting 0.2% and 0.8%, respec-tively of cells and Colombian overseas purchases of industrial goods, and 0.1% and 0.8%, when compared to the respective total amounts, in 2016.

The amount of the apparent foot-wear consumption in Colombia in 2016 was USD 748.5 million, cal-culated according to the figures for production, and external pur-chases and sales.

15

INdICAtORS BY COMPANY SIZE

Total production for the industry and for the sector in 2016, ac-cording to the number of people employed, is shown in Table No. 2. Although to define in Colom-bia small and medium-size com-panies (SMSC) the parameters used are total assets and num-ber of employees, this analysis took into consideration the latter indicator, whose number of em-ployees is up to 49 for micro and small production units, and bet-ween 51 and 199 for the medium-size companies.

Information about the variables according to the personnel sca-les selected lead us to conclude that the manufacturing activity in Colombia includes, in gene-ral, the share of a large number of small companies (63.9%) and medium-sized companies (26.6%). In fact, for 2016, and the national aggregate, 90.5% of the establishment had less than 200 employees, was responsible for 45.5% of the people employed, and generated 40.7% of the pro-duction value.

In relative terms, i.e., according to the contribution to number of people employed and to the va-lue of production by the sector, the importance of the SMSE’s as

a whole is higher than the ave-rage for the country’s manufac-turing industry in the following groups: rubber products (ISIC 221), with 72.9% and 61.9%, and plastic products (ISIC 222), with 48.9% and 43.3%.

In manufacturing of basic chemi-cal products (ISIC 201) and other chemical products (ISIC 202), 90% of the facilities are SMSE’s, the contribution to the number of people employed by the sector is 59.9% for the former and 41.4% for the latter, and their participation in the value of gross production is 40.5% and 49%, respectively.

In contrast, in the groups of textile product preparation and weaving (ISIC 131), textile pro-ducts except garments (ISIC 139), and footwear (ISIC 152), the facilities with over 200 em-ployees accounted for, in 2016, 71.5%, 65.4%, and 54.7% of the people employed, respectively, and 75.5%, 71.5%, and 58.8% of the value produced.

The contribution by the SMSE’s to the industrial added value in 2016 was 32.4%. There were hig-her percentages in the groups for: footwear (ISIC 152) with 41%, basic chemicals (ISIC 201), with 50.5%, other chemicals (ISIC 202) with 39.4%, rubber products

(ISIC 221) 64.9%, and plastic products (ISIC 222) with 44.9%. In the category of text of product preparation and weaving (ISIC 131) and textile products except garments (ISIC 139), large esta-blishments have the highest par-ticipation in the added value, in the order of 72% and 71%.

3.2 thE REGIONS ANd MANUFACtURING PROdUCtION IN 2016

For 2016, this section considers, in the first place, the geographic distribution of the global and sec-torial manufacturing activity, Ta-ble No. 3, and then, the contribu-tion by the sectors of interest to the regional production activity, Table No. 3.1.

3.2.1 GEOGRAPhIC LOCAtION OF GLOBAL ANd SECtORIAL MANUFACtURING PROdUCtION

Table No. 3 includes the main va-riables, in absolute and relative terms, for manufacturing produc-tion in the departments of Antio-quia, Atlantico, Bolívar, Cauca, Cundinamarca, Risaralda, San-tander and Valle del Cauca, Bo-gota D.C., and aggregate amou-nts for the rest of Colombia.

The figures show that, in 2016, 90.3% of gross production and 90.3% of the industrial added

16

TABLE No. 2COLOMBIA: NATIONAL INDUSTRIAL PRODUCTION OF THE CHEMICAL, WEAVING, AND SOME TEXTILE PRODUCTS,

FOOTWEAR, PRODUCTION CHAINS, AND TOTAL ACCORDING TO THE SCALE OF PEOPLE EMPLOYED, 2016

Establishments People Gross Production Added Value Electricity Employed Consumption

Number Part. %

Number Part. %

Billions Part. of pesos %


KWH Part. Millions %

INDUSTRIAL GROUPISIC Revision 3

131 TEXTILE PREPARATION AND WEAVING 113 100 17.397 100 2.282 100 898 100 464 100

between 1 and 49 people employed 53 46,9 1.149 6,6 119 5,2 51 5,7 10 2,2


over 200 people employed 20 17,7 12.439 71,5 1.724 75,5 645 71,9 402 86,7

139 TEXTILE PRODUCTS, EXCEPT GARMENTS 178 100 20.620 100 2.958 100 1.133 100 257 100



over 200 people employed 20 11,2 13.484 65,4 2.114 71,5 807 71,2 209 81,4

152 FOOTWEAR 277 100 16.925 100 1.395 100 661 100 63 100



over 200 people employed 17 6,1 9.262 54,7 821 58,8 389 58,9 35 54,8

201 BASIC CHEMICALS 158 100 10.858 100 8.729 100 2.818 100 1.151 100

between 1 and 49 people employed 97 61,4 2.074 19,1 1.539 17,6 748 26,5 188 16,4


over 200 people employed 13 8,2 4.356 40,1 5.195 59,5 1.395 49,5 800 69,5

202 OTHER CHEMICALS 406 100 42.761 100 17.290 100 7.869 100 411 100


between 50 and 199 people employed 129 31,8 12.907 30,2 6.770 39,2 2.450 31,1 95 23,2


221 RUBBER PRODUCTS 95 100,0 4.804 100,0 523 100,0 244 100,0 42 100,0



over 200 people employed 3 3,2 1.300 27,1 199 38,1 86 35,2 19 44,6

222 PLASTIC PRODUCTS 606 100,0 55.322 100,0 10.093 100,0 3.898 100,0 1.251 100,0


between 50 and 199 people employed 188 31,0 19.260 34,8 3.390 33,6 1.371 35,2 372 29,7


TOTAL MANUFACTURING INDUSTRY 8.466 100 726.261 100 243.469 100 88.355 100 15.740 100

between 1 and 49 people employed 5.408 63,9 109.740 15,1 45.740 18,8 9.083 10,3 837 5,3

between 50 and 199 people employed 2.251 26,6 220.658 30,4 53.408 21,9 19.569 22,1 2.614 16,6

over 200 people employed 807 9,5 395.863 54,5 144.321 59,3 59.703 67,6 12.290 78,1

Source: Acoplásticos based on the 2016 annual manufacturing survey by DANE.

17

TABLE No. 3COLOMBIA: LOCATION OF THE PRODCTION BY THE CHEMICAL, WEAVING, AND SOME TEXTILE

PRODUCTS, FOOTWEAR CHAINS, AND TOTAL MANUFACTURING, 2016

REGION

131 TEXTILE PREPARATION AND WEAVING 113 100 17.397 100 2.282 100 898 100 464 100 Antioquia 58 51,3 8.846 50,8 1.230 53,9 461 51,4 256 55,2 Bogota D.C. 36 31,9 6.111 35,1 763 33,4 285 31,7 171 36,8 Risaralda 4 3,5 661 3,8 96 4,2 42 4,7 13 2,9 Valle del Cauca 9 8,0 942 5,4 36 1,6 20 2,2 5 1,0 Rest of the country 6 5,3 837 4,8 157 6,9 90 10,0 19 4,1 139 TEXTILE PRODUCTS, EXCEPT GARMENTS 178 100 20.620 100 2.958 100 1.133 100 257 127 Antioquia 62 34,8 5.495 26,6 589 19,9 238 21,0 37 41,8 Atlántico 10 5,6 2.230 10,8 291 9,8 82 7,2 37 14,4 Bogota D.C. 64 36,0 9.162 44,4 1.495 50,5 583 51,4 120 46,9 Cundinamarca 18 10,1 1.857 9,0 183 6,2 47 4,2 16 6,2 Risaralda 3 1,7 458 2,2 71 2,4 29 2,5 0 0,1 Santander 4 2,2 486 2,4 65 2,2 30 2,7 6 2,2 Valle del Cauca 12 6,7 575 2,8 245 8,3 115 10,2 39 15,2 Rest of the country 5 2,8 357 1,7 21 0,7 10 0,9 2 0,6 152 FOOTWEAR 277 100 16.925 100 1.395 100 661 100 63 100 Antioquia 36 13,0 3.708 21,9 386 27,7 193 29,2 9 14,9 Atlántico 3 1,1 66 0,4 3 0,2 1 0,2 0 0,7 Bogota D.C. 98 35,4 5.218 30,8 352 25,3 151 22,9 17 27,5 Cundinamarca 6 2,2 1.228 7,3 89 6,4 50 7,5 8 12,0 Risaralda 5 1,8 495 2,9 32 2,3 16 2,3 1 2,0 Santander 59 21,3 866 5,1 65 4,7 25 3,8 2 2,7 Valle del Cauca 38 13,7 3.586 21,2 287 20,5 132 19,9 17 27,0 Rest of the country 32 11,6 1.758 10,4 181 13,0 93 14,1 8 13,2 201 BASIC CHEMICALS 158 100 10.858 100 8.729 100 2.818 100 1.151 100 Antioquia 32 20,3 2.684 24,7 805 9,2 370 13,1 129 11,2 Atlántico 8 5,1 1.053 9,7 969 11,1 198 7,0 60 5,2 Bogota D.C. 26 16,5 1.224 11,3 386 4,4 137 4,9 18 1,6 Bolívar 13 8,2 1.521 14,0 4.458 51,1 1.192 42,3 597 51,9 Cauca 4 2,5 113 1,0 53 0,6 27 1,0 2 0,2 Cundinamarca 29 18,4 1.207 11,1 611 7,0 362 12,9 68 5,9 Santander 4 2,5 266 2,4 82 0,9 60 2,1 37 3,2 Valle del Cauca 27 17,1 2.337 21,5 1.202 13,8 400 14,2 235 20,4 Rest of the country 15 9,5 453 4,2 163 1,9 73 2,6 6 0,5 202 OTHER CHEMICALS 406 100 42.761 100 17.290 100 7.869 100 411 100 Antioquia 91 22,4 7.999 18,7 2.668 15,4 1.415 18,0 43 10,5 Atlántico 19 4,7 1.967 4,6 1.928 11,2 466 5,9 26 6,3 Bogota D.C. 162 39,9 13.885 32,5 3.852 22,3 1.822 23,1 59 14,4 Bolívar 8 2,0 414 1,0 652 3,8 247 3,1 9 2,1 Cundinamarca 49 12,1 8.824 20,6 3.579 20,7 1.756 22,3 159 38,6 Risaralda 3 0,7 40 0,1 8 0,0 2 0,0 0 0,0 Santander 8 2,0 294 0,7 356 2,1 38 0,5 7 1,6 Valle del Cauca 48 11,8 6.996 16,4 3.010 17,4 1.707 21,7 66 16,1 Rest of the country 18 4,4 2.342 5,5 1.237 7,2 416 5,3 43 10,4 221 RUBBER PRODUCTS 95 100 4.804 100 523 100 244 100 42 100 Antioquia 21 22,1 1.144 23,8 103 19,7 50 20,3 9 20,4 Atlántico 3 3,2 99 2,1 4 0,8 2 0,7 0 0,8 Bogota D.C. 39 41,1 1.811 37,7 173 33,0 90 37,0 11 27,2 Cundinamarca 8 8,4 617 12,8 23 4,4 9 3,7 1 3,4


Number % Number % Billions % of pesos

Billions % of pesos

KWH % Millions

18

Continuation

TABLA No. 3COLOMBIA: LOCALIZACIÓN DE LA PRODUCCIÓN DE LAS CADENAS QUÍMICAS, TEJEDURA Y UNOS

PRODUCTOS TEXTILES, CALZADO Y MANUFACTURERA TOTAL, 2016

Santander 5 5,3 159 3,3 16 3,1 7 3,0 1 1,5 Valle del Cauca 11 11,6 682 14,2 170 32,5 67 27,5 18 42,4 Rest of the country 8 8,4 292 6,1 34 6,4 19 7,8 2 4,3 222 PLASTIC PRODUCTS 606 100 55.322 100 10.093 100 3.898 100 1.251 100 Antioquia 129 21,3 12.497 22,6 1.661 16,5 703 18,0 184 14,7 Atlántico 22 3,6 2.332 4,2 525 5,2 180 4,6 48 3,8 Bogota D.C. 261 43,1 20.348 36,8 3.297 32,7 1.365 35,0 397 31,7 Bolívar 13 2,1 2.849 5,1 1.016 10,1 300 7,7 161 12,9 Cauca 6 1,0 809 1,5 223 2,2 64 1,6 34 2,7 Cundinamarca 57 9,4 8.561 15,5 1.981 19,6 747 19,2 257 20,5 Risaralda 10 1,7 694 1,3 43 0,4 15 0,4 7 0,6 Santander 15 2,5 627 1,1 119 1,2 46 1,2 13 1,0 Valle del Cauca 73 12,0 5.095 9,2 931 9,2 374 9,6 117 9,3 Rest of the country 20 3,3 1.510 2,7 297 2,9 104 2,7 34 2,7 TOTAL MANUFACTURING INDUSTRY 8.466 100 726.261 100 243.469 100 88.355 100 15.740 100 Antioquia 1.822 21,5 174.552 24,0 44.382 18,2 17.369 19,7 2.146 13,6 Atlántico 352 4,2 43.936 6,0 15.234 6,3 5.775 6,5 884 5,6 Bogota D.C. 2.928 34,6 200.820 27,7 39.023 16,0 15.466 17,5 1.612 10,2 Bolívar 139 1,6 15.898 2,2 17.011 7,0 3.647 4,1 1.202 7,6 Cauca 91 1,1 14.766 2,0 6.528 2,7 2.876 3,3 710 4,5 Cundinamarca 647 7,6 76.653 10,6 30.480 12,5 13.356 15,1 1.687 10,7 Risaralda 179 2,1 20.261 2,8 4.114 1,7 1.302 1,5 240 1,5 Santander 381 4,5 19.564 2,7 23.269 9,6 5.960 6,7 932 5,9 Valle del Cauca 1.082 12,8 103.417 14,2 39.770 16,3 14.351 16,2 2.862 18,2 Rest of the country 845 10,0 56.394 7,8 23.657 9,7 8.252 9,3 3.465 22,0

Source: Acoplásticos based on data from the 2016 annual manufacturing survey by DANE.

value for the country came, res-pectively, from Antioquia (18.2% and 19.7% of the total absolute values for each variable), Bogota D.C. (16% and 17.5%), Valle del Cauca (16.3% and 16.2%), Cun-dinamarca (12.5% and 15.1%), Santander (9.6% and 6.7%), At-lantico (6.3% and 6.5%), Bolivar (7.0% and 4.1%), Cauca (2.7% and 3.3%) and Risaralda (1.7% and 1.5%). This production ac-tivity was carried out in 90% of the (8,466) facilities in the sur-

vey by DANE, where the number of people employed was 92.2% of total industrial employment (726,261 people).

The reasons listed above are the same ones which contributed, in a similar or greater proportion, to the nationwide figures for manu-facturing production of several of the group selected for this report.

The areas mentioned contributed 91.8% to the value of gross pro-

duction and 97.4% to the added value in the manufacture of basic chemical products (ISIC 201), in 90.5% of the facilities, with 95.8% of the people employed. The department of Bolivar stands out with respect to production (51.1%) and added value (42.3%) because, among other chemical substances, the manufacture of the most widely used plastic ma-terials is concentrated in Mamo-nal, Cartagena.

REGION



Billions % of pesos

KWH % Millions

19

TABLE No. 3.1COLOMBIA: SECTORS REPRESENTED BY ACOPLÁSTICOS IN THE REGIONAL MANUFACTURING

INDUSTRY, 2016

Antioquia 1.822 100,0 174.552 100,0 44.382 100,0 17.369 100,0 2.146 100,0131 textile preparation and weaving 58 3,2 8.846 5,1 1.230 2,8 461 2,7 256 11,9139 other textile products, except garments 62 3,4 5.495 3,1 589 1,3 238 1,4 37 1,7152 FOOTWEAR 36 2,0 3.708 2,1 386 0,9 193 1,1 9 0,4201 basic chemicals 32 1,8 2.684 1,5 805 1,8 370 2,1 129 6,0202 other chemicals 91 5,0 7.999 4,6 2.668 6,0 1.415 8,1 43 2,0221 RUBBER PRODUCTS 21 1,2 1.144 0,7 103 0,2 50 0,3 9 0,4222 plastic products 129 7,1 12.497 7,2 1.661 3,7 703 4,0 184 8,6Sectors represented 429 23,5 42.373 24,3 7.441 16,8 3.429 19,7 667 31,1 Atlántico 352 100,0 43.936 100,0 15.234 100,0 5.775 100,0 884 100,0139 other textile products, except garments 10 2,8 2.230 5,1 291 1,9 82 1,4 37 4,2152 FOOTWEAR 3 0,9 66 0,2 3 0,0 1 0,0 0 0,1201 basic chemicals 8 2,3 1.053 2,4 969 6,4 198 3,4 60 6,8202 other chemicals 19 5,4 1.967 4,5 1.928 12,7 466 8,1 26 2,9221 RUBBER PRODUCTS 3 0,9 99 0,2 4 0,0 2 0,0 0 0,0222 plastic products 22 6,3 2.332 5,3 525 3,4 180 3,1 48 5,4Sectors represented 65 18,5 7.747 17,6 3.720 24,4 930 16,1 171 19,4 Bogota D.C. 2.928 100,0 200.820 100,0 39.023 100,0 15.466 100,0 1.612 100,0131 textile preparation and weaving 36 1,2 6.111 3,0 763 2,0 285 1,8 171 10,6139 other textile products, except garments 64 2,2 9.162 4,6 1.495 3,8 583 3,8 120 7,5152 FOOTWEAR 98 3,3 5.218 2,6 352 0,9 151 1,0 17 1,1201 basic chemicals 26 0,9 1.224 0,6 386 1,0 137 0,9 18 1,1202 other chemicals 162 5,5 13.885 6,9 3.852 9,9 1.822 11,8 59 3,7221 RUBBER PRODUCTS 39 1,3 1.811 0,9 173 0,4 90 0,6 11 0,7222 plastic products 261 8,9 20.348 10,1 3.297 8,4 1.365 8,8 397 24,6Sectors represented 686 23,4 57.759 28,8 10.318 26,4 4.433 28,7 794 49,2 Bolivar 139 100,0 15.898 100,0 17.011 100,0 3.647 100,0 1.202 100,0201 basic chemicals 13 9,4 1.521 9,6 4.458 26,2 1.192 32,7 597 49,7202 other chemicals 8 5,8 414 2,6 652 3,8 247 6,8 9 0,7222 plastic products 13 9,4 2.849 17,9 1.016 6,0 300 8,2 161 13,4Sectors represented 34 24,5 4.784 30,1 6.126 36,0 1.738 47,7 768 63,9 Cauca 91 100,0 14.766 100,0 6.528 100,0 2.876 100,0 710 100,0201 basic chemicals 4 4,4 113 0,8 53 0,8 27 0,9 2 0,3222 plastic products 6 6,6 809 5,5 223 3,4 64 2,2 34 4,8Sectors represented 10 11,0 922 6,2 276 4,2 91 3,1 36 5,0

Cundinamarca 647 100,0 76.653 100,0 30.480 100,0 13.356 100,0 1.687 100,0

139 other textile products, except garments 18 2,8 1.857 2,4 183 0,6 47 0,4 16 0,9

152 FOOTWEAR 6 0,9 1.228 1,6 89 0,3 50 0,4 8 0,4

201 basic chemicals 29 4,5 1.207 1,6 611 2,0 362 2,7 68 4,0

202 other chemicals 49 7,6 8.824 11,5 3.579 11,7 1.756 13,1 159 9,4

221 RUBBER PRODUCTS 8 1,2 617 0,8 23 0,1 9 0,1 1 0,1

222 plastic products 57 8,8 8.561 11,2 1.981 6,5 747 5,6 257 15,2

Sectors represented 167 25,8 22.294 29,1 6.467 21,2 2.971 22,2 508 30,1

REGION



Billions % of pesos

KWH % Millions

20

TABLA No. 3.1COLOMBIA: SECTORES REPRESENTADOS POR ACOPLÁSTICOS EN LA INDUSTRIA MANUFACTURERA

REGIONAL, 2016

Source: Acoplásticos based on data from the 2016 annual manufacturing survey by DANE.

Continuación

Risaralda 179 100,0 20.261 100,0 4.114 100,0 1.302 100,0 240 100,0131 textile preparation and weaving 4 2,2 661 3,3 96 2,3 42 3,2 13 5,5139 other textile products, except garments 3 1,7 458 2,3 71 1,7 29 2,2 0 0,1152 FOOTWEAR 5 2,8 495 2,4 32 0,8 16 1,2 1 0,5202 other chemicals 3 1,7 40 0,2 8 0,2 2 0,2 0 0,0222 plastic products 10 5,6 694 3,4 43 1,0 15 1,1 7 3,1Sectors represented 25 14,0 2.348 11,6 251 6,1 103 7,9 22 9,3 Santander 381 100,0 19.564 100,0 23.269 100,0 5.960 100,0 932 100,0139 other textile products, except garments 4 1,0 486 2,5 65 0,3 30 0,5 6 0,6152 FOOTWEAR 59 15,5 866 4,4 65 0,3 25 0,4 2 0,2201 basic chemicals 4 1,0 266 1,4 82 0,4 60 1,0 37 3,9202 other chemicals 8 2,1 294 1,5 356 1,5 38 0,6 7 0,7221 RUBBER PRODUCTS 5 1,3 159 0,8 16 0,1 7 0,1 1 0,1222 plastic products 15 3,9 627 3,2 119 0,5 46 0,8 13 1,4Sectors represented 95 24,9 2.698 13,8 703 3,0 207 3,5 64 6,9 Valle del Cauca 1.082 100,0 103.417 100,0 39.770 100,0 14.351 100,0 2.862 100,0131 textile preparation and weaving 9 0,8 942 0,9 36 0,1 20 0,1 5 0,2139 other textile products, except garments 12 1,1 575 0,6 245 0,6 115 0,8 39 1,4152 FOOTWEAR 38 3,5 3.586 3,5 287 0,7 132 0,9 17 0,6201 basic chemicals 27 2,5 2.337 2,3 1.202 3,0 400 2,8 235 8,2202 other chemicals 48 4,4 6.996 6,8 3.010 7,6 1.707 11,9 66 2,3221 RUBBER PRODUCTS 11 1,0 682 0,7 170 0,4 67 0,5 18 0,6222 plastic products 73 6,7 5.095 4,9 931 2,3 374 2,6 117 4,1Sectors represented 218 20,1 20.213 19,5 5.880 14,8 2.814 19,6 496 17,3 Total country 8.466 100,0 726.261 100,0 243.469 100,0 88.355 100,0 15.740 100,0131 textile preparation and weaving 113 1,3 17.397 2,4 2.282 0,9 898 1,0 464 2,9139 other textile products, except garments 178 2,1 20.620 2,8 2.958 1,2 1.133 1,3 257 1,6152 FOOTWEAR 277 3,3 16.925 2,3 1.395 0,6 661 0,7 63 0,4201 basic chemicals 158 1,9 10.858 1,5 8.729 3,6 2.818 3,2 1.151 7,3202 other chemicals 406 4,8 42.761 5,9 17.290 7,1 7.869 8,9 411 2,6221 RUBBER PRODUCTS 95 1,1 4.804 0,7 523 0,2 244 0,3 42 0,3222 plastic products 606 7,2 55.322 7,6 10.093 4,1 3.898 4,4 1.251 7,9Sectors represented 1.833 21,7 168.687 23,2 43.270 17,8 17.521 19,8 3.639 23,1

92.8% gross production and 94.7% of the added value for other chemical products (ISIC 202), generated by 94 5% of the people employed in 95.6% of the manufacturing facilities in this

group, was obtained in the re-gions mentioned above. In addi-tion, in Bogota D.C. (22.3% of the production and 23.1% of the added value), Valle del Cauca (with 17.4% and 21.7%), Antio-

quia (with 15.4% and 18% and Atlantico (with 11.2% and 5.9%), contributed jointly with 87% and 91% of the production and the added value for this group in Colombia.

REGION



Billions % of pesos

KWH % Millions

21

In 2016, the manufacture of rub-ber products (ISIC 221) con-centrated in Bogota D.C. (33% of production and 37% of the added value), Valle del Cauca (32.5% and 27.5%), and Antio-quia (19.7% and 20.3%), which, together, represented 85.2% of the production and 84.8% of the added value, obtained through 74.8% of the facilities with 75.7% of the people working in this in-dustry in Colombia.

In the preparation of plastic items (ISIC 222), the nine regions listed participated with 97.1% of the value of gross production and 97.3% of the added value. Accor-ding to the contributions to these indicators, the first places where held by Bogota DC (32.7% and 35%), Cundinamarca (19.6% and 19.2%) and Antioquia (16.5% and 18%) followed by Bolivar (10.1% and 7.7%), Valle del Cauca (9.2% and 9.6%), Cauca (2.2% and 1.6%), and Santander (1.2%).

Geographically, 87.2% of gross production in the preparation and weaving of textile products (ISIC 131) is located in Antioquia and in Bogota DC; the former has the highest contribution to the number of people employed (51.3%) and value of gross pro-duction (53.9%). In the manu-facture of textile products other

than garments (ISIC 139) Bogo-ta D.C. and Antioquia have the first and second places in terms of the value of gross production and added value, with shares of 50.5% and 51.4% for Bogota, and 19.9% and 21% for Antioquia.

A total of 73.5% of the value of gross production and 72% of the national added value in the manufacture of footwear and its parts (ISIC 152) were obtained in production facilities located in Antioquia (27.7% and 29.2%), Bo-gota DC (25.3% and 22.9%), and Valle del Cauca (20.5% in 19.9%).

3.2.2 SECtORS OF INtERESt IN thE REGIONAL MANUFACtURING INdUStRY

Table No. 3.1 displays the parti-cipation of the sectors of interest in the regional manufacturing in-dustry during 2016.

The assembly of manufacturing activity groups to which this re-port refers, contributed 17.8% to the value of production and 19.8% to the added value, 23.2% to employment, and had a share of 23.1% in the consumption of electrical energy by the entire in-dustry in the country.

This aggregate sector contribu-tion is relatively higher in seve-ral of the regions in question, to

wit: in Bolivar, 30.1% to industrial employment and 36% to produc-tion, especially in basic chemicals (ISIC 201) and plastic products (ISIC 222); in Bogota D.C., 28.8% of the personnel used by manu-facture and 26.4% contribution to production, the biggest were other chemicals (ISIC 202) and plastic products (ISIC 222); in Cundina-marca, 29.1% of the jobs in the manufacturing industry and 21.2% contribution to production, espe-cially of other chemicals (ISIC 202) and plastic products (ISIC 222).

In Atlantico, the sectors of interest overall were 17.6% of local indus-trial employment and 24.4% of the value produced. The largest con-tributions were chemical substan-ces and products (ISIC 201 and 202) and plastic products (ISIC 222). In Antioquia, the sectors of interest represented 24.3% of the people employed and 16.8% of the production, most noticeably other chemicals (ISIC 202) and plastic products (ISIC 222).

In Valle del Cauca, the sectors under consideration contributed 19.5% to industrial employment and 14.8% to the value of produc-tion. Especially significant were chemical materials (ISIC 201 and 202) followed by plastic products (ISIC 222).

In Cauca, plastic manufactu-res (ISIC 222) in basic chemical

22

materials (ISIC 201) together account for 4.2% of the value of local industrial production and 6.2% of the people employed in that industry.

In Santander, chemical products (ISIC 201 and 202) and plastic products (ISIC 222) together par-ticipated with 2.4% of the value of regional production and 6.1% of the people employed.

3.3 ChARACtERIStICS ANd StRUCtURE OF thE PROdUCtIVE SECtORS OF INtERESt IN 2016

The main variables in 2016 for the national production by the stake-holders, classified according to ISIC revision 4 adapted for Co-lombia, are listed in Table No. 4. Both the absolute amount in this participation in the respective groups are shown.

In a group that includes basic chemical substances, fertilizers and rubber in primary forms (ISIC 201), the category of basic che-mical substances and products contributed, according to the survey, 28. A 5% to the value of gross production of this class, obtained through 55.1% of the industrial facilities that employed 51.7% of the labor force. Their contribution to the aggregate va-lue was 42.6% of the total.

In this same group (ISIC 201), 17.1% of the facilities belong to the class of plastics in primary forms (raw materials for the trans-formation industry), contributing to the figures for the sector with 19.8% of the people employed, 49.1% to the value of production, and 40% to the added value.

In the group of other chemical products (ISIC 202), paints, var-nishes, inks and mastiques parti-cipated in the production activity with 19% of the facilities, 9.5% of the personnel employed, 8.6% of the value produced, and 7.9% of the added value.

The class of other chemical pro-ducts represented 29.1% of the establishments, 16.5% of the personnel employed, 23.6% of the value of production, and 18.4% of the added value for ISIC group 202.

In the manufacture of rubber ar-ticles (ISIC 221), retreading used tires contributed to the group to-tals with 34.7% of the facilities, 27.2% of the people employed, 25.7% of the value produced, and 23.5% of the added value. The manufacturer of basic forms and other proper products, in turn, was carried out in 62.1% of the manufacturing units, with 63.7% of the people employed,

and their contribution to pro-duction and added value for the group amounted to 46.3% and 54%, respectively.

In plastic products (ISIC 222), 42% of the value of production reported and 39.7% of the added value derived from the subgroup of basic forms of plastic 55_/, and the remaining amounts were for plastic items with 57.4% of the production and 60.3% of the added value. The manufacture of products from this last category was carried out in 74.4% of the facilities by 70.3% of the people employed in the group of plastic manufacturing.

In preparation and weaving of tex-tile products (ISIC 131), weaving participated with 66.1% of the va-lue of production and 64.2% of the group’s added value.

In the manufacture of textile pro-ducts other than garments (ISIC 139), 26.4% of the value of pro-duction and 31.8% of the added value came from the subdivision of other textile items, which in-cludes products such as fabrics and felts impregnated, coated, or laminated with plastic; nonwoven fabrics, high resistance woven

5_/ Includes plates, bars, profiles, sheets, strips, pipes, self-adhesive flat forms, and alveolar or foam plastic.

23

TABLE No. 4COLOMBIA: SECTOR PROFILE, CHEMICALS, PLASTICS, RUBBER, PAINTS, INKS, WEAVING AND SOME

TEXTILE PRODUCTS, AND FOOTWEAR, 2016

131 textile preparation and weaving 113 100 17.397 100 2.282,1 100 897,8 100 463,9 100

Preparation and spinning of textile fibers 18 15,9 2.817 16,2 384,7 16,9 117,0 13,0 107,4 23,2

Textile product weaving 36 31,9 9.088 52,2 1.508,1 66,1 576,6 64,2 298,4 64,3

Textile product finishing 59 52,2 5.492 31,6 389,3 17,1 204,1 22,7 58,1 12,5

139 textile products, except garments 178 100 20.620 100 2.958,5 100 1.133,3 100 256,8 100

Knit and lace fabrics 30 16,9 8.986 43,6 1.278,0 43,2 446,1 39,4 123,2 48,0

Manufacture of items using textile materials,

exept garments 74 41,6 6.697 32,5 771,6 26,1 265,5 23,4 48,3 18,8

Rugs and carpets 13 7,3 543 2,6 44,5 1,5 24,0 2,1 1,7 0,6

Strings, twines, cables, cobblers thread, and netting 16 9,0 874 4,2 84,4 2,9 37,8 3,3 8,6 3,4

Other n.c.p. textile items 45 25,3 3.520 17,1 779,9 26,4 359,9 31,8 75,0 29,2

152 FOOTWEAR 277 100 16.925 100 1.395,1 100 660,8 100 63,3 100

Leather and skin footwear with any type of sole 171 61,7 10.089 59,6 793 56,8 405 61,3 23 36,1

Other types of footwear except leather and skin 57 20,6 4.700 27,8 434,6 31,2 177,7 26,9 23,3 36,8

Footwear parts 49 17,7 2.136 12,6 167,8 12,0 78,3 11,8 17,2 27,1

201 basic chemical substances 158 100 10.858 100 8.728,7 100 2.818,2 100 1.151,3 100

basic chemical substances and products 87 55,1 5.615 51,7 2.485,5 28,5 1.201,0 42,6 487,4 42,3

fertilizers and notrogenous inorganic compounds 44 27,8 3.092 28,5 1.956,1 22,4 489,5 17,4 230,3 20,0

plastics in primary forms 27 17,1 2.151 19,8 4.287,2 49,1 1.127,7 40,0 433,6 37,7

202 other chemical products 406 100 42.761 100 17.289,9 100 7.869,3 100 410,8 100

pesticides and other chemical products for agricultural use 33 8,1 2.397 5,6 2.669,3 15,4 834,2 10,6 26,6 6,5

paints, varnishes, and similar coatings, printing inks,

and mastiques 77 19,0 4.072 9,5 1.487,1 8,6 620,0 7,9 25,9 6,3

soaps and detergents, preparations for cleaning and

polishing, preparations for personal care 178 43,8 29.232 68,4 9.054,8 52,4 4.967,4 63,1 275,5 67,1

other chemical products n.c.p. 118 29,1 7.060 16,5 4.078,7 23,6 1.447,7 18,4 82,7 20,1

221 RUBBER PRODUCTS 95 100 4.804 100 523,0 100 243,9 100 42,2 100

rubber tires and inner tubes 3 3,2 439 9,1 146,2 28,0 55,1 22,6 16,2 38,3

retreading of used tires 33 34,7 1.307 27,2 134,4 25,7 57,2 23,5 8,0 19,0

basic forms of rubber and other rubber products n.c.p. 59 62,1 3.058 63,7 242,4 46,3 131,6 54,0 18,0 42,7

222 plastic products 606 100 55.322 100 10.092,8 100 3.897,6 100 1.250,8 100

basic forms of plastic 155 25,6 16.435 29,7 4.303,8 42,6 1.546,9 39,7 447,5 35,8

Plastic n.c.p. items 451 74,4 38.887 70,3 5.789,0 57,4 2.350,7 60,3 803,3 64,2

total manufacturing industry 8.466 726.261 243.468,8 88.355,5 15.740,3

Fuente: Acoplásticos based on data from the 2016 annual manufacturing survey by DANE.


Number Part. %

Number Part. %



KWH Part. Millions %

INDUSTRIAL GROUPISIC Revision 3

24

fabrics for tire cords, and techni-cal textile materials. The class of ropes, cords, and netting in any textile material, whether or not impregnated, lined, covered, or sheathed with rubber or plastic, contributed 2.8% and 3.3% to the production and added value of this group.

In the group of footwear and foot-wear parts (ISIC 152), the indica-tors for leather and skin footwear with any type of soul stand out: 61.7% of the manufacturing faci-lities employing 59.6% of the per-sonnel dedicated to this industry, with a share of 56.8% in the value of gross production, and 61.3% of the added value. The manu-facturer of other types of footwear contributed 31.2% to production and 26.9% to the added value. With respect to footwear parts (in any material), the share was 12% in the value of production and 11.8% to the added value.

The information for group 203 under ISIC Rev. 4, which includes the manufacturer of synthetic and man-made fibers, was included by DANE, for reasons of statisti-cal confidentiality, in the category of other manufacturing industries (ISIC 329). This group received the same treatment in the publis-hed results of the 2014 and 2015 surveys. Therefore, no specific indicators are available.

3.4 EVOLUtION OF thE GLOBAL ANd SECtOR PROdUCtION ACtIVItY IN 2017

DANE, through its monthly ma-nufacturing survey, makes a preliminary estimate of the short-term performance of employment and, in real terms, of the values for production and sales, at the global and sector scales.

We should mention that DANE, taking into consideration the changes in the local industrial structure and the adoption of ISIC Rev. 4 adapted for Colombia, re-designed the monthly manufac-turing sample that it had used from January 2002 to December 2014. The purpose of the change was to detect with greater accu-racy and detail the evolution of the manufacturing sector, and create new series with informa-tion that is based not on the year 2001 but rather 2014. Additiona-lly, the current monthly manufac-turing survey follows international standards of methodology and classification and meets the re-quirements that govern statistical work worldwide. All these chan-ges are included in the monthly manufacturing survey applied to 39 industrial activities that reflect the official information as of Ja-nuary 2015.

Therefore, comparing the data that indicates the year-to-year be-havior of the sector’s manufactu-ring activity to the data reported in previous editions of Plásticos en Colombia, accepted issues for 2016 – 2017, and 2017 – 2018, special adjustments are neeeded to be able to draw valid conclu-sions about the evolution.

Table No. 5 contains the inter-annual percentages of year-to-date variations for the indicators of the global and sector manufac-turing industry for 2016 and 2017.

From January to December 2017, compared to the same period in 2016, production and sales for the set of industrial activities repre-sented in the sample decreased, in real terms, by 0.6% and 0.4%, and employment decreased by 0.9%. In 2016, the variations com-pared to 2015 were 3.5%, 4.2% and 07%, respectively.

When oil refining and fuel blen-ding are excluded from the na-tional figures, the inter-annual variation in the indicators for the rest of the manufacturing indus-try in 2017 were: real production -1.9%, real sales -1.9% and total employment -0.9%; and in 2016, those figures were 0.5%, 1.1% and 0.8% in that order.

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TABLE No. 5COLOMBIA: EVOLUTION OF THE GLOBAL AND SECTOR INDUSTRIES, 2016 - 2017

Variación anual en porcentaje

INDICATORS 2016 2017 130 Spinning, weaving, and Textile product finishing Real production (2,4) (8,2) Real sales 2,5 (9,1) Total employment 0,5 (5,7) 152 Footwear manufacturer Real production 4,3 (0,7) Real sales 2,2 (5,2) Total employment (0,2) (4,3) 201 Basic chemical substances Real production (2,7) 5,1 Real sales (4,8) 5,3 Total employment 2,8 2,2 202 Other chemical products Real production 1,4 1,2 Real sales (0,7) (0,6) Total employment (0,1) 2,0 221 RUBBER PRODUCTS Real production 4,5 9,4 Real sales (0,5) 2,7 Total employment 2,1 1,1 222 Plastic products Real production 0,0 (1,9) Real sales 1,2 (2,5) Total employment 3,2 3,4 Total Manufacturing industry Real production 3,5 (0,6) Real sales 4,2 (0,4) Total employment 0,7 (0,9) Total Manufacturing industry without refining Real production 0,5 (1,9) Real sales 1,1 (1,9) Total employment 0,8 (0,9)

Source: Acoplásticos based on data from the 2016 and 2017 monthly manufacturing survey by DANE.

26

Of the 39 activities included in the sample, 13 displayed positive variations in real production from January to December 2017. The highest growth sectors include vegetable and animal oils and fats 8.6%; milling products 6.8%; ba-sic chemical substances and their products, 5.1%, and coking, oil refining, and fuel blending, 4.9%.

About the sector results for 2017 it should be noted that:

- Real production increased in rubber products (ISIC 221, 9.4%), basic chemical subs-tances (ISIC 201, 5.1%), and in other chemical products (ISIC 202, 1.2%). The other stake-holders had decreases greater than the total manufacturing in-dustry, thus: spinning weaving, and finishing of textile products (ISIC 130, -8.2%), plastic pro-ducts (ISIC 221, -1.9%) and footwear manufacture (ISIC 152, -0.7%);

- Real sales during 2017 increa-sed in the groups or basic che-mical substances (ISIC 201, 5.3%) and rubber products (ISIC 221, 2.7%). The other groups decreased more than those for real sales of the glo-bal manufacturing industry; the hardest hit were spinning, weaving, and finishing of texti-

le products (ISIC 130, -9.1%), footwear manufacture (ISIC 152, -5.2%), plastic products (ISIC 222, -2.5%) and other chemical products (ISIC 202, -0.6%).

- During 2017, total employment increased in plastic products (ISIC 222, 3.4%), basic che-mical substances (ISIC 201, 2.2%), other chemical products (ISIC 202, 2%) and in rubber products (ISIC 201, 1.1%). The groups of spinning, weaving, and finishing of textile products (ISIC 130, -5.7%) and footwear manufacture (ISIC 152, -4.3%) decreased in terms of total em-ployment more than the manu-facturing industry as a whole.

4. FOREIGN tRAdE OF INdUStRIAL GOOdS 2015 - 2017

The FOB value of Colombian annual global and industrial im-ports and exports and those for the selected ISIC, from 2015 to 2017 are shown in Tables 6 and 7. The sector data has been ad-justed for the period based on the correlation made by DANE between ISIC revision 4 and the Harmonized Commodity Des-cription and Coding System.

4.1 EXPORtS

The downward trend of the FOB value of global exports which be-gan 2013 continued until 2016, and climbed in 2017. During that last year the value was USD 37.8 billion, 22% higher than the figure displayed in 2016.

Industrial goods exported, with values very similar to those of 2015 and 2016, increased by 8%, reaching 17.1 billion dollars FOB.

The development mentioned above for the value of total and in-dustrial exports during the period 2015 to 2017 shows an increase in the relative share of the latter over the former of up to 51% du-ring the period 2015 to 2016, and a relative decrease during the past year, reaching 45%, a similar percentage to 2015.

The amounts shipped overseas of product from the ISIC groups of interest, and the country’s to-tal exports, decreased in 2016 and recovered in 2017, with the exception of textile products other than garments (ISIC 139) and plastic products (ISIC 222) which decreased as well in 2017. Consolidated values in billions

27

TABLE No. 6COLOMBIAN EXPORTS FROM THE ISIC REV. 4 GROUPS OF INTEREST , AND TOTALS FO

THE INDUSTRY AND FOR THE COUNTRY, 2015 - 2017

INDUSTRY GROUP 2015 2016 2017

FOB value in millions ofs o

Source: Acoplasticos calculations based on DANE magnetic files.

131 textile preparation and weaving 70,5 57,2 63,91311 Preparation and spinning of textile fibers 5,8 4,9 7,01312 Textile product weaving 64,7 52,3 56,8 139 textile products, except garments 219,0 198,2 185,81391 Knit and lace fabrics 57,5 48,4 48,81392 Manufacture of items using textile materials, exept garments 77,3 76,2 69,31393 Rugs and carpets 1,4 1,2 1,31394 Strings, twines, cables, cobblers thread, and netting 5,4 4,9 5,31399 Other n.c.p. textile items 77,4 67,6 61,1 152 FOOTWEAR 38,4 33,6 40,01521 Leather and skin footwear with any type of sole 14,8 15,6 16,31522 Other types of footwear except leather and skin 10,6 9,6 13,71523 Footwear parts 13,1 8,4 10,0 201 basic chemical substances 1.313,3 1.175,5 1.230,72011 basic chemical substances and products 289,6 254,0 272,82012 fertilizers and notrogenous inorganic compounds 143,6 133,8 81,82013 plastics in primary forms 878,5 786,4 875,02014 synthetic rubber in primary forms 1,6 1,3 1,0 202 other chemical products 1.273,7 1.131,0 1.187,12021 pesticides and other chemical products for agricultural use 456,2 433,8 386,82022 paints, varnishes, and similar coatings, printing inks, and mastiques 43,8 32,6 37,72023 soaps and detergents, preparations for cleaning and polishing, preparations for personal care 564,1 492,5 577,92029 other chemical products n.c.p. 209,6 172,0 184,7 203 SYNTHETIC AND ARTIFICIAL FIBERS 30,0 28,2 40,7 221 RUBBER PRODUCTS 77,7 52,6 61,12211 rubber tires and inner tubes 24,3 20,2 32,12212 retreading of used tires 0,1 0,0 0,02219 basic forms of rubber and other rubber products n.c.p. 53,3 32,4 28,9 222 plastic products 552,2 496,7 490,02221 basic forms of plastic 323,5 288,3 277,12229 Plastic n.c.p. items 228,7 208,4 212,9 TOTAL INDUSTRY 15.882,3 15.880,7 17.155,6 TOTAL COUNTRY 35.690,8 31.073,5 37.766,3

% industry participation in total exports 44,5 51,1 45,4

28

TABLE No. 7COLOMBIAN IMPORTS OF ISIC REV. 4 GROUPS OF INTEREST AND TOTALS FOR THE INDUSTRY

AND THE COUNTRY, 2015 - 2017



Source: Acoplasticos calculations based on DANE magnetic files.

131 TEXTILE PREPARATION AND WEAVING 723,7 718,5 637,31311 Preparation and spinning of textile fibers 214,7 232,5 211,21312 Textile product weaving 509,0 486,0 426,0 139 textile products, except garments 462,4 383,2 398,51391 Knit and lace fabrics 126,8 120,8 124,91392 Manufacture of items using textile materials, exept garments 98,5 65,3 83,41393 Rugs and carpets 26,3 22,1 21,41394 Strings, twines, cables, cobblers thread, and netting 12,6 9,9 9,11399 Other n.c.p. textile items 198,2 165,0 159,8 152 FOOTWEAR 378,7 325,2 342,21521 Leather and skin footwear with any type of sole 119,4 100,5 101,61522 Other types of footwear except leather and skin 247,6 216,5 233,61523 Footwear parts 11,7 8,1 6,9 201 basic chemical substances 4.459,8 3.922,7 4.167,42011 basic chemical substances and products 2.289,4 2.116,8 2.300,72012 fertilizers and notrogenous inorganic compounds 734,7 536,2 605,52013 plastics in primary forms 1.389,1 1.232,8 1.215,72014 synthetic rubber in primary forms 46,6 36,9 45,4 202 other chemical products 2.105,4 1.877,2 1.897,62021 pesticides and other chemical products for agricultural use 324,8 340,2 330,82022 paints, varnishes, and similar coatings, printing inks, and mastiques 181,4 173,7 167,82023 soaps and detergents, preparations for cleaning and polishing, preparations for personal care 546,8 479,5 512,02029 other chemical products n.c.p. 1.052,4 883,8 886,9 203 SYNTHETIC AND ARTIFICIAL FIBERS 190,9 174,8 162,3 221 RUBBER PRODUCTS 854,0 753,6 817,22211 rubber tires and inner tubes 659,2 574,8 619,82212 retreading of used tires 0,0 1,9 1,72219 basic forms of rubber and other rubber products n.c.p. 194,7 176,8 195,7 222 plastic products 922,0 823,3 851,42221 basic forms of plastic 500,3 449,3 450,42229 Plastic n.c.p. items 421,8 373,9 401,0 TOTAL INDUSTRY 49.256,1 40.560,9 41.709,5 Total country 51.598,0 42.868,8 43.976,6

% industry participation in total imports 95,5 94,6 94,8

29

of dollars were 3.6 during 2015, 2.8 in 2016, and 3.3 in 2017. The industrial products whose export value remained relatively cons-tant in 2015 and 2016, increased in 2017.

The biggest exports in terms of value were, in descending order, the basic chemicals group (ISIC 201) and other chemical pro-ducts (ISIC 202), whose aggre-gate values of USD 1313 million and USD 1274 million in 2015 changed to USD 1175 (-10%) and USD 1131 (-11%) in 2016, and USD 1231 (5%), and USD 1187 (5% in 2017.

In group ISIC 201, plastic in pri-mary forms (class 2013), which contributes two thirds to the re-sults, a decrease external sales from USD 878.5 million in 2015 to USD 786.4 million (-10%) in 2016, and increased to USD 875 million (11%) in 2017 was displa-yed. BASIC chemical substances and products (class 2011), which have a 22% share in the group’s exports, dropped from USD 289.6 million in 2015 to USD 254 million (-12%) in 2016, and increased to USD 272.8 million (7%) in 2017.

Within the ISIC group 202, the paints, varnishes, inks and mas-tique segment (class 2022) drop-ped 26% in the value of shipments overseas during the period 2015-

2016, from 43.82 USD 32.6 mi-llion, and increased to USD 37.7 million (16%) in 2017. In the ca-tegory of other chemical products (class 2029) which contributes 16% to the external sales of group 202, the following values were re-corded for the three-year period: 209.6 in 2015, 172 (-18%) in 2016, and 184.7 (77%) in 2017.

Plastic products (ISIC 222) follow in the amount of external sales for the analyzed groups. The value of USD 552.2 million in 2015 drop-ped to USD 497 (-10.1%) in 2016, and to USD 490 (-1%) in 2017. Within the group, exports of basic forms of plastic (film, sheets, pro-files, and pipes, among others, (class 2221) fell 11% in 2016 and 4% in 2017. Miscellaneous plas-tic products (class 2229) which have a 42% share, slid 9% in the value of overseas shipments in 2016, but increased 2% in 2017.

The sum of every export of all chemicals, including synthe-tic and man-made fibers (ISIC section 22), exhibited an annual contribution during each of the 3 years of 20.4%, 18.2%, and 17.5% to the figure for industrial products, 9.3%, and 8% to total exports from Colombia.

The group of plastic materials (class 2013 of plastics in primary forms) and its manufactured

goods (ISIC 222) have annual shares from 2015 to 2017, of 9%, 8.1%, and 8% in external cells of industrial products, and 4%, 4.1%, and 3.6% in the totals for the country.

External sales of the category textile products except garments (ISIC 139) which reached a total of USD 219 million in 2015 de-creased to 198.2 (-9%) in 2016, which totaled USD 219 million in 2015, were reduced to 198.2 (-9%) in 2016, and to 185.8 (-6%) in 2017; the subdivision of other textile items (class 1399) which includes technical items and fabrics as well as nonwoven fabrics made from different textile materials, coated or not with rub-ber or plastic, contributes an ave-rage of 34% per year to the value exported by group.

Exports of rubber products (ISIC 221) decreased from USD 77.7 million in 2015 to USD 52.6 mi-llion (-32%) in 2016, and increa-sed to USD 61.1 million in 2017 (16%); basic forms and other rub-ber products (class 2219) accou-nted, on average, for 68.6% of the value exported in 2015, 61.6% in 2016, and 47,3% in 2017, decli-ning during the three-year period.

The textile product preparation and weaving group (ISIC 131) decreased its exports in millions

30

of dollars in 2016 and had an in-crease during the past year: from 70.5 in 2015 to 57.2 (-19%) in 2016, and 63.9 (12%) in 2017.

Exports of the synthetic and man-made fibers group (ISIC 203) were USD 30 million in 2015, 28.2 (-6%) in 2016, and 40.7 (44%) in 2017.

4.2 IMPORtS

Imports at FOB prices carried out by Colombia, both in total and of industrial products, decreased by 17% and 18%, respectively, in 2016, and increased 2.6% and 2.8% in 2017. The groups other than textile preparation and wea-ving (ISIC 131) and man-made and synthetic fibers (ISIC 203) had a similar decreasing perfor-mance during the period.

In external purchases of products from the groups under consi-deration, the most significant in terms of size are basic chemical substances (ISIC 201) and other chemicals (ISIC 202) with values of USD 4,459.8 million and USD 2,105.4 million FOB in 2015, res-pectively ; in 2016 the values were USD 3,922.7 million (-12%) and USD 1,877.2 million (-11%). Du-ring 2017 imports of basic chemi-cals grew by 6% and imports of other chemicals grew by 1% for

a total of USD 4,1674 million and USD 1,897.6 million dollars FOB.

In the former category (ISIC 201), plastics in primary forms (class 2013) have accounted for, on average for the three years, 31% of the total amounts imported in this group; however, most raw materials used for the polymers and resins made in Colombia come from other countries and have a significant impact on the dollar amounts for basic chemi-cals (class 2011), which repre-sent around 53% of the annual average for the group. In 2016, imports of plastic in primary forms (ISIC 2013) decreased 11% in dollars compared with a 12% decrease in the total amou-nt for group 201; and in 2017 the decrease in the former was 1% while the group as a whole in-creased 6%, with an increase of 9% in basic chemical products and substances (class 2011).

In other chemical products (ISIC 202), the subdivision of paints, varnishes, inks and mastiques (class 2022) with imports for USD 181.4 million FOB in 2015 drop-ped 4% in 2016, less than the de-crease for the group, and in 2017 there was another decrease of 3% in external purchases and the amount was USD 167.8 million. In the category of other chemi-cal products (class 2029) which

has an average participation of 48% in the amount imported by the group, decreased by 16% in 2016, with a total of USD 884 mi-llion FOB, which was practically the same level as 2017.

Imports of plastic products (ISIC 222) slid USD 922 million dollars FOB in 2015 to 823.3 (-11%) in 2016, and to USD 851.4 (3%) in 2017. These amounts are distri-buted, on average, as follows: 54% for basic forms of plastic (class 2221) and the remaining 46% in miscellaneous plas-tic items (class 2229). The two subdivisions decreased in va-lue during 2016; but in 2017 the amount of external purchases of basic forms of plastic remained the same, while the purchase of other manufactured goods in-creased 7%.

In rubber products (ISIC 221) the amount of imports in millions of dollars FOB decreased 12% in 2016, to 753.6. This amount in-creased 8% in 2017, reaching USD 817.2 million. In the tires and inner tubes group (included in the contact surface for retrea-ding tires) (class 2211) account for three of the amounts impor-ted. BASIC forms and other rub-ber products decreased 9% in terms of value reported in 2016, and climbed 11% during 2017.

31

The sum of all chemicals, inclu-ding synthetic and man-made fibers (division 20) and rubber and plastic products (division 22) represents, in the annual average for the 3 years, 18% of the total imports of industrial products and 17% of the Colombia’s gene-ral imports.

The group of plastic materials (class 2013 plastics in primary forms) and their manufactured products (ISIC 222) represent 4.8% and 4.6% of the annual average for the 3 years, for every value of total external purchases of industrial products, and of the country’s general purchases, respectively.

The amount, in dollars FOB, of synthetic and man-made fiber (ISIC 203) imports dropped from USD 191 million in 2015 to USD 175 million in 2016 (-8%), and to USD 162.3 million in 2017 (-7%).

Imports of textile preparation and weaving products (ISIC 131) de-creased during 2016 (-1%) and 2017 (-11%) to USD 637.3 mi-llion in the last year. Textile pro-ducts excluding garments (ISIC 139) decreased during 2016 (-17%) and increased during 2017 (4%), so Exeter purchases went from USD 462.4 million to USD 398.5 million between the 1st and 3rd years of the period under consideration.

Footwear of all types and its parts (ISIC 152) display decreasing purchases overseas from 2015 to 2016, from USD 379 million to USD 325.2 million (-14%), and increased to USD 342.2 million FOB (5%) in the year 2017.

4.3 IMPORt-EXPORt BALANCE

A joint analysis of the FOB amou-nts of annual exports and imports of goods from 2015 to 2017, as mentioned above, allows us to conclude that foreign trade falls short in these product catego-ries as well as in the aggregate of industrial and total imports and exports for Colombia as shown in Table 866_/. The country had decreasing trade deficits during the 3 years in the groups of other chemical products (ISIC 202) and synthetic and man-made fi-bers (ISIC 203), and also in the amounts of industrial and global imports and exports. In other groups, the negative balances decreased during 2016 but in-creased in 2017.

The dynamics of the import and export flows during the period being studied have been signi-ficantly impacted by factors such as the uncertain and weak deve-lopment of the world and the Co-

6_/ The difference between the value of exports and imports is more noticeable when imports are accounted for at CIF values and not as FOB, as done in this analysis.

lombian markets and economies, which began to improve in 2017; the low amounts of Colombian exports which started to climb in the last year, and the relative dependence of the Colombian economy and external sales on mining and energy products; the foreign exchange volatility, and the variability of international pri-ces of oil and its derivatives and other basic products starting in mid-2014.

The balance between exports and imports of Colombian indus-trial products shows decreasing balances for the 3 years, in mi-llions of dollars: 33,374 in 2015, 24,680 in 2016 (-26%) and 24,554 (-0,5%). In addition, the nega-tive balance in the total figures for the country dropped 26% in 2016 and a further 47% in 2017, with sequential annual deficits of 15,907.3, 11,7953 and 6,210.3 million dollars FOB in 2017.

In conclusion, the movements of total imports and exports of goods from Colombia from 2015 to 2017, and for industrial pro-ducts, show that the participation of the latter in the country’s export basket climbed 44.5% in 2015 to 51.1% in 2016, and 245.4% last year. It should be noted that in 2007 external sales of industry products contributed 62.8% of

32

TABLE No. 8COLOMBIAN TRADE BALANCE FOR THE ISIC REV. 4 GROUPS OF INTEREST AND TOTALS

FOR THE INDUSTRY AND THE COUNTRY, 2015 - 2017



Source: Acoplasticos calculations based on DANE magnetic files and from DANE.Data in parentheses indicates deficit

131 TEXTILE PREPARATION AND WEAVING -653,2 -661,3 -573,41311 Preparation and spinning of textile fibers -208,9 -227,6 -204,21312 Textile product weaving -444,4 -433,7 -369,2 139 textile products, except garments -243,4 -185,0 -212,81391 Knit and lace fabrics -69,3 -72,4 -76,11392 Manufacture of items using textile materials, exept garments -21,2 10,8 -14,11393 Rugs and carpets -24,9 -20,9 -20,11394 Strings, twines, cables, cobblers thread, and netting -7,2 -5,0 -3,71399 Other n.c.p. textile items -120,8 -97,4 -98,7 152 FOOTWEAR -340,3 -291,6 -302,21521 Leather and skin footwear with any type of sole -104,6 -84,9 -85,31522 Other types of footwear except leather and skin -237,1 -206,9 -219,91523 Footwear parts 1,4 0,3 3,1 201 basic chemical substances -3.146,5 -2.747,2 -2.936,72011 basic chemical substances and products -1.999,8 -1.862,7 -2.027,92012 fertilizers and notrogenous inorganic compounds -591,1 -402,4 -523,72013 plastics in primary forms -510,6 -446,4 -340,82014 synthetic rubber in primary forms -45,0 -35,6 -44,4 202 other chemical products -831,7 -746,2 -710,52021 pesticides and other chemical products for agricultural use 131,4 93,6 55,92022 paints, varnishes, and similar coatings, printing inks, and mastiques -137,6 -141,1 -130,12023 soaps and detergents, preparations for cleaning and polishing, preparations for personal care 17,3 13,0 65,92029 other chemical products n.c.p. -842,8 -711,8 -702,2 203 SYNTHETIC AND ARTIFICIAL FIBERS -160,9 -146,6 -121,5 221 RUBBER PRODUCTS -776,3 -700,9 -756,12211 rubber tires and inner tubes -634,9 -554,6 -587,62212 retreading of used tires 0,0 -1,9 -1,72219 basic forms of rubber and other rubber products n.c.p. -141,4 -144,4 -166,8 222 plastic products -369,8 -326,6 -361,42221 basic forms of plastic -176,7 -161,0 -173,32229 Plastic n.c.p. items -193,0 -165,6 -188,2 TOTAL INDUSTRY -33.373,8 -24.680,3 -24.554,0

Total country -15.907,3 -11.795,3 -6.210,3

33

the total. This percentage began a gradual decline since 2008 at the expense of primary goods and mineral resources such as oil and coal and their byproducts. In addition, the amount of imports of industrial goods and total im-ports in the country changed in relatively similar percentages, and for this reason they are still around 95% of the period totals.

Among individual groups, the group of basic chemicals (ISIC 201) with annual trade deficits from 2015 to 2017 for 3,146, 2,747 and 2,936.7 million do-llars, equivalent to 2.3 times the amount of exports from 2015 to 2016, and almost twice that for 2017, holds, by far, the first place in this measurement. Within the group, for plastics and primary forms (class 2013) the trade im-balance was reduced during the three years and is approximately equal to 56% of the amounts ex-ported in 2015 and 2016, and to 40% in 2017.

In other chemical products (ISIC 202), the annual negative balan-ce between exports and imports decreased from 837.1 in 2015 to 746.2 million dollars in 2016, and 710.5 million dollars in 2017, equivalent to 66% in the first two years, and to 60% in 2017, of

the respective amounts of fore-ign sales. With respect to paints, varnishes, inks and mastiques, (class 2022), with foreign trade fi-gures significantly lower than the previous items, the differences in millions of dollars between ex-ternal sales and purchases have been 138 in 2015, 141 in 2016, and 130 in 2017, higher by 3.1, 4.3, and 3.4 times the respective annual exports.

In rubber products (ISIC 221), the following amounts in mi-llions of dollars are displayed: 776.3 in 2015, 700.9 in 2016, and 756.1 in 2017. The largest contribution to this imbalance comes from tires and inner tu-bes (class 2211), which con-tributes 80% of the group’s annual deficit and is 10 to 13 times greater than the amounts exported from 2015 to 2017.

In plastic products (ISIC 222), the group has exhibited negative balances in foreign trade: USD 369.8 million in 2015, USD 326.6 million in 2016, and USD 361.4 million in 2017, with a slightly hig-her share from plastic items. As a proportion of the exported amou-nts, the annual deficits in this group have increased from 67% in 2015 and 2016 to 74% in 2017.

In footwear (ISIC 152), the USD 340.3 million deficit in 2015 drop-ped to USD 291.6 million and in-creased to USD 302.2 million in 2017. These amounts are 9 and 8 times the values for exports du-ring 2015 and 2016, and in 2017, respectively.

The other groups in the study: textile product preparation and weaving (ISIC 131) and textile products except garments (ISIC 139), also displayed negative fi-gures in the annual balance bet-ween exports and imports during the period analyzed. In the first group, deficit increased during 2016 and dropped in 2017, while in group ISIC 131 the figure was lower in 2016 and 2015 and hig-her in 2017. The magnitude of trade deficits more than surpas-ses the amount of exports for the first group, while in the second group the levels are more simi-lar. In synthetic and man-made fibers (ISIC 203), the results of the annual foreign trade in ba-lance decreased during the three years, from 161 to 147 and 121.5 million dollars which, on avera-ge, is 5.3 times greater than the dollar amounts exported during 2015 and 2016, and three times greater than the amounts expor-ted in 2017.

34

4.4 MAjOR tRAdE PARtNERS

Tables 9 and 10 show the amou-nts, in dollars FOB, of exports and imports of goods from the groups of the industry, and Co-lombia, with indicating the amou-nts in millions of dollars and the share of the destination countries and geo-economic zones for the sales, and the origin of external purchases made by Colombia from 2015 to 2017.

With respect to grouping coun-tries, the following adjustments have been made to have compa-rable annual figures. The Andean Community in this report inclu-des Bolivia, Ecuador and Peru; for the European Union, the fi-gures refer to the 27 members as of January 1, 20077_/, while Venezuela8_/ is shown separate from Mercosur (Argentina, Bra-zil, Paraguay, and Uruguay) even though it is currently part of this sub-regional group.

Several conclusions obtained from the information in the tables are presented below.

7_/ Croatia effectively joined the European Union on July 1, 2003. The current trade agreement with the European Union is pending application to bilateral trade with that country

8_/ Due to his traditional importance as Colombia’s trade partner, it is shown separate from Mercosur.

In exports,

- 80% of the total goods expor-ted by Colombia during the three years was sent, as an annual average, to the markets of the United States (29.1%), the European Union (15.7%), the Andean partners (7.5%), China (6.6%), Panama (5.2%), Mercosur excluding Venezuela (4.1%), the Caribbean commu-nity - CARICOM9_/ (3.4%), rest of Europe (3.3%), and Mexico (3.2%). A total of 32% of the annual average of total exter-nal cells of goods during the three-year period were sent to Latin American groups (inclu-ding Central America) and to Caribbean groups;

- A total of 80% of the average annual value of industrial goods exported from 2015 to 2017 went to the following countries: United States (27.1%), the An-dean community (14.8%), the European Union (10.4%), Mer-cosur - excluding Venezuela (64%), Mexico (5.7%), as well as (3.8%), Central America (3.7%), Chile (2.8%), the Eu-ropean free trade Association – EFTA10_/ (2.5%) and Panama

9_/ The Caribbean Community —CARICOM— con-sists of Antigua and Barbuda, Bahamas, Barba-dos, Belize, Dominica, Granada, Guyana, Haiti, Montserrat Island, St. Lucie Island, St. Vincent and the Grenadines, Jamaica, Surinam, and Tri-nidad and Tobago,

10_/ The European free trade Association —EFTA— consists of Iceland, Liechtenstein, Norway, and Switzerland.

(2.4%). In this category, the La-tin American and Caribbean markets together were, on ave-rage, the annual destination for 42% of the dollar amount sold overseas, a percentage that is higher than the total goods ex-ported by Colombia during the 3 years studied;

- For most groups, the regional markets of Latin America and the Caribbean together are relatively more important than for the industrial aggregate and for Colombia as a whole. Thus, in the products with hig-hest foreign sales value, the share of the regional market is, on average: 80% in plas-tics in primary forms (class 2013) and in other chemical products (class 2029); 75% in plastic items (class 2229); 70% in basic forms of plastic (class 2221); and 52% in basic che-mical products and chemicals (class 2011);

- The Andean Community has been, proportionally, in the pe-riod 2015 - 2017, the main fo-reign market for products from the following groups: paints, varnishes, inks and mastiques (class 2022) with 57.5%; textile product weaving (class 1312) with 52.5%; footwear (ISIC 152) with 44.2%; other chemi-cal products (class 2029) with

35

TABLE No. 9DESTINATION OF COLOMBIAN EXPORTS, AT FOB VALUE, FROM THE ISIC REV. 4 GROUPS

OF INTEREST AND TOTALS FOR THE INDUSTRY AND THE COUNTRY, 2015 - 2017

FOB value

GEO ECONOMIC ZONE millions ofdollars

Part.%

millions ofdollars

Part.%

millions ofdollars

Part.%

2015 2016 2017

1312 Textile product weaving 64,7 100,0 52,3 100,0 56,8 100,0Andean community 31,9 49,3 25,6 48,8 25,6 33,8Mexico 6,2 9,5 9,0 17,2 4,6 7,8Venezuela 11,5 17,8 4,6 8,7 9,0 2,8Central American Common Market 3,4 5,3 4,6 8,8 3,6 6,0United States 7,9 12,2 3,6 6,9 4,6 2,0Rest of the world 3,8 5,9 5,0 9,6 9,5 16,7 1392 Manufacture of items using textile materials, exept garments 77,3 100,0 76,2 100,0 69,3 100,0United States 44,3 57,3 47,2 62,0 39,7 57,3Andean community 7,1 9,2 8,2 10,7 9,6 13,8Mexico 2,9 3,8 5,2 6,8 4,7 6,8Panama 6,2 8,0 4,7 6,2 1,0 1,5European Union 5,2 6,8 3,5 4,6 2,9 4,1Central American Common Market 2,5 3,2 2,6 3,5 4,8 6,9Rest of the world 9,1 11,7 4,7 6,1 6,7 9,6 1394 Strings, twines, cables, cobblers thread, and netting 5,4 100,0 4,9 100,0 5,3 100,0Mexico 1,4 25,3 0,9 18,8 0,9 16,4Mercosur 1,2 21,9 0,7 14,9 1,0 17,8Andean community 0,7 13,8 0,6 13,3 0,8 15,4United States 0,6 10,9 0,5 11,0 0,7 12,3Cuba 0,5 8,5 0,6 13,1 0,5 8,6Central American Common Market 0,3 5,8 0,4 9,2 0,5 8,6European Union 0,4 6,5 0,3 5,8 0,4 7,4Panama 0,2 3,9 0,3 7,1 0,2 3,0Rest of the world 0,2 3,3 0,3 6,8 0,6 10,4 1399 Other n.c.p. textile items 77,4 100,0 67,6 100,0 61,1 100,0Mercosur 18,9 24,4 15,6 23,1 16,2 26,6Andean community 17,6 22,7 13,3 19,7 13,4 22,0United States 17,4 22,5 16,1 23,9 9,8 16,0Mexico 9,6 12,5 7,7 11,4 11,0 18,0Central American Common Market 4,2 5,4 3,8 5,6 3,1 5,0Rest of Asia 3,0 3,8 3,9 5,8 2,3 3,7Rest of the world 6,7 8,7 7,1 10,6 5,3 8,6 152 FOOTWEAR 38,4 100,0 33,6 100,0 40,0 100,0Andean community 18,2 47,4 12,9 38,4 18,4 46,1Central American Common Market 2,6 6,7 2,9 8,8 5,5 13,8United States 3,1 8,2 3,6 10,6 4,3 10,7Chile 4,2 11,0 3,4 10,1 2,0 5,0Venezuela 3,3 8,5 3,0 9,0 2,8 7,0Panama 2,8 7,2 3,5 10,5 2,7 6,8Mexico 1,7 4,5 1,3 3,8 0,9 2,2Rest of the world 2,5 6,6 3,0 8,8 3,3 8,3

36



FOB value

2015 2016 2017

Continuation

2011 basic chemical substances and products 289,6 100,0 254,0 100,0 272,8 100,0United States 85,9 29,7 61,3 24,1 66,6 24,4Andean community 49,1 16,9 40,0 15,7 56,3 20,7Mercosur 25,7 8,9 36,0 14,2 40,7 14,9Venezuela 37,9 13,1 31,9 12,6 20,3 7,5Central American Common Market 23,4 8,1 23,9 9,4 29,8 10,9Mexico 8,4 2,9 10,3 4,1 10,9 4,0free trade zones 11,9 4,1 7,2 2,9 4,1 1,5Dominican Republic 6,4 2,2 8,3 3,3 8,3 3,0European Union 7,2 2,5 5,4 2,1 8,7 3,2Chile 8,2 2,8 4,5 1,8 5,3 2,0Rest of the world 25,4 8,8 25,1 9,9 21,8 8,0 2013 plastics in primary forms 878,5 100,0 786,4 100,0 875,0 100,0Mercosur 294,6 33,5 254,2 32,3 335,8 38,4Andean community 175,7 20,0 152,5 19,4 159,7 18,3United States 51,6 5,9 70,8 9,0 60,2 6,9Mexico 41,6 4,7 62,1 7,9 56,6 6,5free trade zones 57,8 6,6 47,3 6,0 48,9 5,6Central American Common Market 62,0 7,1 40,5 5,1 48,3 5,5India 23,3 2,7 52,9 6,7 56,0 6,4Chile 38,4 4,4 34,1 4,3 30,6 3,5Dominican Republic 34,9 4,0 22,7 2,9 32,1 3,7Rest of the world 98,6 11,2 49,4 6,3 46,7 5,3 2022 paints, varnishes, and similar coatings, printing inks, and mastiques 43,8 100,0 32,6 100,0 37,7 100,0Andean community 28,0 64,0 17,8 54,5 19,9 52,7Central American Common Market 4,2 9,5 4,0 12,4 5,9 15,6Panama 2,3 5,3 2,9 8,9 4,0 10,5Dominican Republic 2,2 5,1 2,5 7,6 2,0 5,3Mexico 2,5 5,7 2,0 6,2 2,0 5,2Venezuela 1,9 4,4 1,1 3,4 0,8 2,2Rest of the world 2,6 5,9 2,3 7,0 3,2 8,5 2029 other chemical products N.C.P. 209,6 100,0 172,0 100,0 184,7 100,0Andean community 88,4 42,2 75,3 43,8 78,3 42,4Venezuela 37,3 17,8 21,1 12,3 16,9 9,2Central American Common Market 11,3 5,4 11,9 6,9 15,3 8,3European Union 12,3 5,9 6,1 3,6 18,8 10,2United States 12,8 6,1 8,5 4,9 8,6 4,6Corea del Sur 5,1 2,4 8,0 4,6 9,5 5,1Mercosur 5,4 2,6 7,5 4,3 9,6 5,2Dominican Republic 8,5 4,1 7,5 4,3 6,3 3,4Mexico 9,4 4,5 6,0 3,5 4,7 2,6Rest of the world 19,2 9,1 20,3 11,8 16,8 9,1


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FOB value

2015 2016 2017

Continuation

203 SYNTHETIC AND ARTIFICIAL FIBERS 30,0 100,0 28,2 100,0 40,7 100,0Mercosur 12,8 42,7 11,8 41,8 18,9 46,4Andean community 6,4 21,2 8,4 29,9 8,4 20,7Venezuela 4,5 15,0 0,6 2,2 2,9 7,2United States 3,2 10,7 1,8 6,3 2,5 6,1Mexico 1,4 4,8 1,4 5,0 2,1 5,1Chile 0,3 1,0 0,5 1,8 2,2 5,5Rest of the world 1,4 4,6 3,6 12,9 3,7 9,1 2219 basic forms of rubber and other rubber products n.c.p. 53,3 100,0 32,4 100,0 28,9 100,0United States 28,7 53,8 11,1 34,3 7,6 26,4Andean community 11,2 20,9 9,4 29,0 12,0 41,6Central American Common Market 2,6 4,8 2,0 6,2 1,8 6,1Chile 2,2 4,2 2,0 6,2 1,2 4,3Venezuela 2,1 3,9 1,7 5,3 0,8 2,9Mexico 1,3 2,4 1,1 3,3 1,2 4,1Mercosur 1,7 3,2 1,1 3,4 0,4 1,4Rest of the world 3,6 6,8 4,0 12,3 3,8 13,1 2221 basic forms of plastic 323,5 100,0 288,3 100,0 277,1 100,0United States 69,0 21,3 66,3 23,0 56,3 20,3Andean community 74,4 23,0 58,7 20,4 57,3 20,7Mexico 36,0 11,1 41,2 14,3 41,8 15,1Central American Common Market 32,6 10,1 25,2 8,7 27,4 9,9Chile 22,9 7,1 26,1 9,1 25,3 9,1European Union 20,2 6,2 22,9 8,0 23,7 8,6Mercosur 19,3 6,0 14,7 5,1 15,2 5,5Venezuela 22,6 7,0 11,4 3,9 4,6 1,7Rest of the world 26,6 8,2 21,8 7,6 25,4 9,2 2229 Plastic n.c.p. items 228,7 100,0 208,4 100,0 212,9 100,0Andean community 60,7 26,5 51,6 24,8 59,3 27,8United States 35,8 15,7 31,6 15,2 32,9 15,5Central American Common Market 22,6 9,9 21,7 10,4 23,8 11,2Mercosur 18,0 7,9 15,2 7,3 16,3 7,7Chile 12,5 5,5 12,3 5,9 12,7 6,0Mexico 11,8 5,2 12,9 6,2 11,4 5,3Panama 10,9 4,8 13,5 6,5 11,5 5,4Dominican Republic 11,2 4,9 10,5 5,1 10,2 4,8European Union 9,0 4,0 12,1 5,8 9,1 4,3Venezuela 15,7 6,9 5,3 2,6 4,2 2,0Rest of the world 20,4 8,9 21,7 10,4 21,5 10,1 Sector Industrial 15.882,3 100,0 15.880,7 100,0 17.155,6 100,0United States 3.977,7 25,0 4.489,5 28,3 4.801,9 28,0Andean community 2.515,0 15,8 2.226,1 14,0 2.486,8 14,5European Union 1.826,0 11,5 1.611,7 10,1 1.645,6 9,6Mercosur 1.031,3 6,5 865,7 5,5 1.245,2 7,3


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FOB value

2015 2016 2017

Continuation

Mexico 869,6 5,5 924,1 5,8 993,0 5,8Venezuela 942,4 5,9 595,8 3,8 310,1 1,8Central American Common Market 581,6 3,7 564,5 3,6 646,6 3,8Chile 471,9 3,0 413,5 2,6 507,1 3,0free trade zones 219,9 1,4 547,0 3,4 522,1 3,0European Free Trade Association EFTA 451,1 2,8 408,7 2,6 370,8 2,2Panama 341,0 2,1 415,1 2,6 426,9 2,5Rest of Asia 366,8 2,3 301,2 1,9 508,5 3,0China 447,7 2,8 239,8 1,5 395,8 2,3Japan 350,6 2,2 342,6 2,2 334,2 1,9Canada 221,3 1,4 231,5 1,5 293,2 1,7Rest of the world 1.268,3 8,0 1.703,9 10,7 1.667,7 9,7 Total country 35.690,8 100,0 31.073,5 100,0 37.766,3 100,0United States 10.072,9 28,2 10.206,9 32,8 10.988,2 29,1European Union 5.988,8 16,8 4.958,2 16,0 5.432,4 14,4Andean community 2.729,9 7,6 2.399,2 7,7 2.734,5 7,2Panama 2.394,2 6,7 1.912,1 6,2 2.584,2 6,8China 2.263,7 6,3 1.127,1 3,6 1.999,6 5,3Mercosur 1.392,9 3,9 1.212,9 3,9 1.685,1 4,5CARICOM 1.158,2 3,2 586,8 1,9 1.811,8 4,8Rest of Europe 881,9 2,5 1.026,1 3,3 1.569,0 4,2Mexico 914,3 2,6 936,9 3,0 1.536,7 4,1Chile 736,7 2,1 670,0 2,2 1.037,4 2,7Central American Common Market 640,9 1,8 709,6 2,3 803,9 2,1Venezuela 1.060,2 3,0 613,9 2,0 319,4 0,8Rest of Asia 663,0 1,9 385,0 1,2 943,4 2,5Rest of America 887,0 2,5 362,0 1,2 303,1 0,8Japan 519,9 1,5 427,6 1,4 557,4 1,5Rest of the world 3.386,3 9,5 3.539,0 11,4 3.460,4 9,2

Source: Acoplasticos calculations based on DANE magnetic files. 1_/ European Free Trade Association EFTA: Iceland, Liechtenstein, Norway, Switzerland 2_/ CARICOM: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Granada, Guiana, Haiti, Montserrat Island, St. Lucia Island, St. Christopher and Nevis Island

St. Vincent and the Grenadines, Jamaica, Surinam, Trinidad and Tobago 3_/ Andean community: Bolivia, Ecuador, Peru 4_/ United States includes Puerto Rico 5_/ Central American Common Market: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua 6_/ Mercosur: Argentina, Brazil, Paraguay, Uruguay 7_/ Rest of Asia: Afghanistan, Armenia, Azerbaijan, Bangladesh, Brunei Darussalam, Buthan, Cambodia, South Korea, Philippines, Hong Kong, Indonesia, Kazakhstan,

Kirguzistan, Macao, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Pakistan, (North) Korean People’s Democratic Republic, People’s Democratic Republic of Laos, Singapore, Sri Lanka, Tajikistan, Thailand, Taiwan East Timor, Turkmenistan, Uzbekistan, Vietnam

8_/ Rest of Europe: Albania, Andorra, Islas Channel Islands, Belarus, Bosnia and Herzegovina, Croatia, Faroe Islands, Georgia, Gibraltar, Macedonia, Moldavia, Monaco, Russia, San Marino, Holy See, Serbia, Montenegro, Turkey, Ukrainia, Yugoslavia

9_/ European Union (27 countries): Germany, Austria, Belgium, Bulgaria, Cyprus, Denmark, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Hungary, Ireland (Eire), Italy, Latonia, Lithuania, Luxembourg, Malta, Netherlands Holland, Poland, Portugal, Czech Republic, Romania, Sweden

Note: in Colombia, goods leaving the customs territory for processing in a free-trade zone are recorded as Exports.


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39

TABLE No. 10ORIGIN OF COLOMBIAN IMPORTS, IN FOB VALUE, FROM THE ISIC REV. 4 GROUPS OF INTEREST, AND

TOTALS FOR THE INDUSTRY AND THE COUNTRY, 2015 - 2017

FOB value

ZONA GEOECONÓMICA Millonesdólares

Part.%

Millonesdólares

Part.%

Millonesdólares

Part.%

2015 2016 2017

1312 Textile product weaving 509,0 100,0 486,0 100,0 426,0 100,0China 280,6 55,1 280,6 57,7 239,9 56,3Rest of Asia 61,7 12,1 46,5 9,6 40,8 9,6India 34,6 6,8 33,1 6,8 34,6 8,1European Union 33,5 6,6 30,8 6,3 26,4 6,2Andean community 28,7 5,6 18,8 3,9 14,8 3,5Mexico 15,6 3,1 17,4 3,6 28,6 6,7United States 16,0 3,1 15,8 3,3 11,4 2,7Rest of the world 38,4 7,6 42,9 8,8 29,6 7,0 1392 Manufacture of items using textile materials, exept garments 98,5 100,0 65,3 100,0 83,4 100,0China 44,8 45,5 27,7 42,4 40,8 48,9United States 14,1 14,3 9,6 14,7 13,1 15,7Chile 11,6 11,8 8,3 12,7 9,7 11,6Andean community 6,3 6,4 3,9 6,0 2,8 3,4European Union 4,3 4,3 3,3 5,0 5,4 6,4Mexico 5,3 5,4 3,8 5,9 1,8 2,2India 3,2 3,2 2,5 3,9 4,1 4,9Rest of the world 8,9 9,1 6,2 9,5 5,7 6,9 1394 Strings, twines, cables, cobblers thread, and netting 12,6 100,0 9,9 100,0 9,1 100,0China 3,5 28,0 2,7 27,0 2,9 31,5United States 3,0 23,6 1,8 18,1 1,7 18,4European Union 1,7 13,4 2,0 20,5 1,7 19,3Corea del Sur 1,0 8,2 1,1 11,0 1,0 11,4free trade zones 1,3 10,2 0,7 6,7 0,1 0,8Mexico 0,4 3,2 0,2 2,3 0,3 3,4Andean community 0,3 2,1 0,3 2,5 0,3 3,0Rest of Asia 0,4 3,0 0,3 3,1 0,1 0,9Rest of the world 1,1 8,4 0,9 8,8 1,0 11,4 1399 Other n.c.p. textile items 198,2 100,0 165,0 100,0 159,8 100,0China 58,0 29,3 59,9 36,3 57,6 36,1United States 33,5 16,9 27,5 16,7 25,0 15,6European Union 21,7 10,9 19,2 11,6 19,1 11,9free trade zones 28,3 14,3 10,6 6,4 4,2 2,6Mercosur 16,0 8,0 10,9 6,6 14,4 9,0Mexico 11,7 5,9 12,2 7,4 13,5 8,5Andean community 7,3 3,7 8,9 5,4 10,7 6,7Israel 8,9 4,5 2,8 1,7 1,0 0,7Rest of the world 12,8 6,5 13,0 7,9 14,2 8,9

40



FOB value


Part.%

Millonesdólares

Part.%

Millonesdólares

Part.%

2015 2016 2017

Continuation

152 FOOTWEAR 378,7 100,0 325,2 100,0 342,2 100,0China 170,8 45,1 137,2 42,2 147,3 43,0Rest of Asia 105,6 27,9 94,1 28,9 114,0 33,3Mercosur 42,0 11,1 43,4 13,3 39,1 11,4Andean community 24,7 6,5 22,4 6,9 14,9 4,4Rest of the world 35,6 9,4 28,0 8,6 26,9 7,9 2011 basic chemical substances and products 2.289,4 100,0 2.116,8 100,0 2.300,7 100,0United States 916,4 40,0 897,7 42,4 1.090,4 47,4China 325,2 14,2 398,6 18,8 342,7 14,9European Union 292,1 12,8 250,4 11,8 296,6 12,9Mercosur 130,4 5,7 86,3 4,1 76,1 3,3India 98,7 4,3 90,8 4,3 95,0 4,1Mexico 124,7 5,4 81,0 3,8 59,4 2,6Andean community 79,3 3,5 69,8 3,3 73,3 3,2Venezuela 94,6 4,1 32,8 1,5 27,6 1,2Rest of Asia 45,6 2,0 36,8 1,7 35,3 1,5Rest of the world 182,5 8,0 172,7 8,2 204,4 8,9 2013 plastics in primary forms 1.389,1 100,0 1.232,8 100,0 1.215,7 100,0United States 539,4 38,8 503,8 40,9 472,1 38,8European Union 133,5 9,6 122,0 9,9 131,7 10,8Mexico 162,2 11,7 114,8 9,3 102,7 8,4Mercosur 107,7 7,8 131,8 10,7 137,8 11,3Corea del Sur 128,0 9,2 82,1 6,7 85,9 7,1China 82,9 6,0 69,8 5,7 75,0 6,2Rest of Asia 63,6 4,6 57,2 4,6 55,5 4,6Canada 54,4 3,9 53,9 4,4 35,0 2,9Rest of the world 117,4 8,5 97,4 7,9 120,0 9,9 2022 paints, varnishes, and similar coatings, printing inks, and mastiques 181,4 100,0 173,7 100,0 167,8 100,0European Union 54,5 30,1 53,4 30,7 54,5 32,5United States 56,4 31,1 54,3 31,3 50,0 29,8Mexico 16,7 9,2 12,7 7,3 12,9 7,7European Free Trade Association EFTA 13,5 7,4 13,4 7,7 11,3 6,7China 9,0 5,0 9,0 5,2 8,9 5,3Mercosur 8,2 4,5 7,5 4,3 7,6 4,5free trade zones 7,7 4,2 6,5 3,7 6,1 3,6Rest of the world 15,4 8,5 16,9 9,7 16,5 9,9 2029 other chemical products N.C.P. 1.052,4 100,0 883,8 100,0 886,9 100,0United States 393,1 37,4 312,2 35,3 312,4 35,2European Union 213,2 20,3 183,2 20,7 186,1 21,0Mexico 116,5 11,1 97,3 11,0 80,2 9,0Mercosur 104,2 9,9 92,8 10,5 91,0 10,3

41



FOB value


Part.%

Millonesdólares

Part.%

Millonesdólares

Part.%

2015 2016 2017

Continuation

China 39,6 3,8 35,8 4,0 38,5 4,3Corea del Sur 40,7 3,9 28,4 3,2 36,4 4,1Central American Common Market 26,4 2,5 25,4 2,9 24,1 2,7Dominican Republic 27,5 2,6 24,9 2,8 21,2 2,4Rest of the world 91,2 8,7 83,8 9,5 97,0 10,9 203 SYNTHETIC AND ARTIFICIAL FIBERS 190,9 100,0 174,8 100,0 162,3 100,0China 55,9 29,3 66,8 38,2 64,8 39,9India 26,7 14,0 20,1 11,5 17,3 10,7Mexico 24,1 12,6 21,5 12,3 17,9 11,0Rest of Asia 25,4 13,3 18,3 10,5 17,4 10,7United States 21,5 11,3 17,0 9,8 16,4 10,1Corea del Sur 9,1 4,8 8,2 4,7 9,6 5,9European Union 10,5 5,5 8,3 4,8 6,6 4,0Rest of the world 17,6 9,2 14,5 8,3 12,4 7,6 2219 basic forms of rubber and other rubber products n.c.p. 194,7 100,0 176,8 100,0 195,7 100,0United States 47,2 24,3 36,9 20,8 45,9 23,5European Union 37,0 19,0 33,3 18,8 37,3 19,1Rest of Asia 36,9 19,0 34,0 19,2 36,1 18,4China 32,5 16,7 33,0 18,7 32,4 16,6Mercosur 9,8 5,1 13,5 7,6 14,1 7,2Japan 8,4 4,3 6,6 3,7 7,7 4,0Mexico 7,9 4,0 6,8 3,8 7,8 4,0Rest of the world 15,0 7,7 12,9 7,3 14,3 7,3 2221 basic forms of plastic 500,3 100,0 449,3 100,0 450,4 100,0China 89,8 17,9 85,1 18,9 86,2 19,1United States 94,8 19,0 78,1 17,4 76,6 17,0European Union 64,1 12,8 68,4 15,2 69,4 15,4Andean community 65,6 13,1 51,1 11,4 49,8 11,1Mercosur 40,8 8,2 44,6 9,9 50,5 11,2Mexico 35,4 7,1 25,2 5,6 21,5 4,8Rest of Asia 25,1 5,0 22,8 5,1 22,1 4,9Chile 23,4 4,7 14,6 3,3 15,7 3,5India 15,8 3,2 17,4 3,9 16,5 3,7Rest of the world 45,4 9,1 42,0 9,3 42,1 9,4 2229 Plastic n.c.p. items 421,8 100,0 373,9 100,0 401,0 100,0China 141,5 33,5 124,6 33,3 141,0 35,1United States 57,4 13,6 49,5 13,2 50,5 12,6Andean community 58,0 13,8 43,9 11,8 37,6 9,4European Union 41,2 9,8 37,8 10,1 45,7 11,4Mexico 32,7 7,7 28,9 7,7 29,2 7,3

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FOB value


Part.%

Millonesdólares

Part.%

Millonesdólares

Part.%

2015 2016 2017

Continuation

free trade zones 25,5 6,0 27,9 7,5 27,3 6,8Mercosur 15,2 3,6 16,9 4,5 18,4 4,6Rest of Asia 18,1 4,3 12,8 3,4 12,7 3,2Rest of the world 32,2 7,6 31,6 8,5 38,7 9,6 Sector Industrial 49.256,1 100,0 40.560,9 100,0 41.709,5 100,0United States 13.445,2 27,3 10.075,9 24,8 10.153,4 24,3China 9.507,9 19,3 8.183,6 20,2 8.268,7 19,8European Union 7.782,4 15,8 5.949,2 14,7 6.454,3 15,5Mexico 3.695,0 7,5 3.278,2 8,1 3.301,5 7,9Mercosur 2.447,7 5,0 2.449,3 6,0 2.617,5 6,3Rest of Asia 1.917,1 3,9 1.753,0 4,3 1.876,1 4,5Andean community 1.969,1 4,0 1.786,9 4,4 1.580,9 3,8free trade zones 1.550,8 3,1 1.473,9 3,6 1.700,8 4,1Japan 1.150,5 2,3 1.035,1 2,6 1.165,1 2,8India 1.134,3 2,3 902,3 2,2 991,8 2,4Rest of the world 4.656,1 9,5 3.673,7 9,1 3.599,4 8,6 Total country 51.598,0 100,0 42.868,8 100,0 43.976,6 100,0United States 14.851,4 28,8 11.360,1 26,5 11.497,6 26,1China 9.561,9 18,5 8.244,4 19,2 8.317,6 18,9European Union 7.899,3 15,3 6.051,8 14,1 6.548,6 14,9Mexico 3.720,3 7,2 3.298,1 7,7 3.325,2 7,6Mercosur 2.572,5 5,0 2.639,3 6,2 2.793,0 6,4Andean community 2.071,4 4,0 1.939,0 4,5 1.661,2 3,8Rest of Asia 1.936,0 3,8 1.771,9 4,1 1.899,9 4,3free trade zones 1.557,1 3,0 1.479,6 3,5 1.705,8 3,9Japan 1.153,9 2,2 1.056,2 2,5 1.169,1 2,7India 1.141,4 2,2 908,3 2,1 997,3 2,3Rest of the world 5.132,8 9,9 4.120,0 9,6 4.061,4 9,2

Source: Acoplasticos calculations based on DANE magnetic files. 1_/ European Free Trade Association EFTA: Iceland, Liechtenstein, Norway, Switzerland 2_/ Andean community: Bolivia, Ecuador, Peru 3_/ United States includes Puerto Rico 4_/ Middle East: Saudi Arabia, Baharain, United Arab Emirates, Iraq, Israel, Jordan, Lebanon, Oman, Palestine (neutral zone), Qatar, Syrian Arab Republic, Islamic Republic

of Iran, Turkey, Yemen, Democratic Yemen 5_/ Mercosur: Argentina, Brazil, Paraguay, Uruguay 6_/ Rest of Asia: Afghanistan, Armenia, Azerbaijan, Bangladesh, Brunei Darussalam, Buthan, Cambodia, South Korea, Philippines, Hong Kong, Indonesia, Kazakhstan,

Kirguzistan, Macao, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Pakistan, (North) Korean People’s Democratic Republic, People’s Democratic Republic of Laos, Singapore, Sri Lanka, Tajikistan, Thailand, Taiwan East Timor, Turkmenistan, Uzbekistan, Vietnam

7_/ European Union: Germany, Austria, Belgium, Bulgaria, Cyprus, Denmark, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Hungary, Ireland (Eire), Italy, Latonia, Lithuania, Luxembourg, Malta, Netherlands Holland, Poland, Portugal, Czech Republic, Romania, Sweden.

Note: in Colombia, when goods produced in an industrial free trade zone are purchased and brought into the customs territory they are recorded as imports.

43

43%; and other plastic items (class 2229) con el 26,4%;

- For other groups, and in the aggregate of industrial pro-ducts, the Andean countries have been the second desti-nation for exports, with the fo-llowing share: 28.4% in basic forms and other rubber pro-ducts (class 2219); 23.5% in man-made and synthetic fibers (ISIC 203); 21.5% in other tex-tile products except garments (class 1399); 21.4% in basic forms of plastic (class ISIC 2221); 19.2% in plastic and pri-mary forms (class 2013); and 17.8% in chemical substances and products (class 2011). The figure for total industrial goods was 14.8%.

- In the three years from 2015 to 2017, the Andean countries have increased their importan-ce for external sales of a signi-ficant part of the sectors analy-zed, compared to the average of industrial goods (14.8%) and the total sales of Colom-bia (7.5%);

- Mercosur was the first desti-nation for synthetic and man-made fibers (ISIC 203) with 44%; plastics in primary forms (class 2013) 34.8%; and other

textile products (class 1399) 24.6%. It was the second desti-nation for overseas shipments for strings, cords, and netting (class 1394) with 18.3%;

Exports to Venezuela, total, industrial, and of product in-terest, have displayed a decre-asing trend during the period 2015 - 2017, with very low figu-res for the last year. The rela-tively higher absolute amounts are mostly chemical substan-ces and products (classes 2011 and 2029), plastics in primary forms (class 2013), and basic forms and plastic products (classes 2221 and 2229);

- The United States, the main market for the Colombia’s in-dustrial products exported also ranks first during the 3 years for exports of basic chemi-cal products and substances (class 2011) with 26.2%; basic forms of plastic (class 2221) 21.6%; items manufactured using textile materials, except garments (class 1392) 58.9%; and basic forms and other rubber products (class 2219) 44.4%. It was a second desti-nation for the group of plastic items (class 2229) with 15.4%;

- With respect to the European Union (27 member countries) exports were made by seve-ral groups in the study, of low amounts, with variable trends during the period. There have been some sales in the catego-ries of basic chemicals (class 2011), plastics in primary forms (ISIC 2013), other chemical products (class 2029), basic forms of plastic (class 2221), plastic items (class 2229), and other textile products except garments (class1392).

In imports

- 82% of the FOB value of Glo-bal and industrial products purchased overseas by Co-lombia from 2015 to 2017, on average per year, in: the United States (27.2%, and 25.6% res-pectively); China (18.9% and 19.7%); the European Union (14.8% and 15.3%); Mexico (7.5% and 7.8%); Mercosur (5.8% and 5.7%); rest of Asia (4.1% and 4.2%); and the An-dean community (4.9% and 4.1%). In this group, the main suppliers, the amount of FOB dollars for total imports de-creased in 2016 and increased in 2017, though the Andean community also decreased in 2017. In industrial products,

44

the amounts purchased from the main countries and groups of countries mentioned above, decreased during 2016 and exhibited a slight increase in 2017, excluding the imports from Mercosur which remain unchanged during 2015 and 2016, and increased during 2017; and the Andean com-munity which had a decreasing trend during the period.

- During the three years, the ge-neral FOB values of total and industrial imports decreased in 2016 and displayed a slight upturn in 2017.

- The United States have also been the main exter-nal supplier, on the average annual basis, of basic chemi-cals (class 2011) with 43.3% of the total for the sector; plas-tics in primary forms (class 2013) 39.5%; other chemical products (class 2029) 36%; and basic forms and rubber products (class 2219) 22.9%. And it was the second coun-try of origin for the categories of: paints, varnishes, inks and mastiques (class 2022) 30.7%; basic forms of plastic (class 2221) 17.8%; plastic products (class 2229) 13.1%; and string, ropes, and netting (class 1394) 20.4%; other textile products (class 1399) and articles ma-nufacturer using textile mate-rials, except garments (class

1392) with 16.4% and 14.9%, respectively;

- China is by far the main supplier of woven textile products (class 1312) with a 56.4% annual ave-rage; plastic products (class 2229) 34%; synthetic and artificial fibers (class 2030) 35.5%; and products manu-factured with textile materials, except garments (class 1392) 45.8%. It is also the first exter-nal supplier of footwear and footwear parts (ISIC 152) with 43.5%; other textile products (class1399) 33.6%; string, ro-pes, and netting (class 1394) 28.7%; and basic forms of plastic (class 2221) 18.7%. It was a second supplier of basic chemical substances and pro-ducts (class 2011) 15,9%;

- The European Union (27 mem-ber countries) during the three years studied was the main ori-gin for paints, varnishes, inks and mastiques (class 2022) with 31.1%, and ranked second for other chemical products (class 2029) with 20.6%; ba-sic forms and rubber products (class 2219) 19%; and plastics in primary forms (class 2013) 10.1%. It was the third supplier of basic chemical substances and products (class 2011) with 12.5%; basic forms of plastic (class 2221) 14.4%; strings ro-pes and netting (class 1394) 17.3%; and other textile pro-

ducts (class 1399) 11.5%. It was the fourth country of origin for plastic items (class 2229) with 10.4%; and woven textile products (class 1312) 6.4%;

- The group of Andean coun-tries as suppliers of imports hold, in the annual average for 3 years, the third place in plastic items (class 2229) with 11.7%, and the fourth position in basic forms of plastic (class 2221) with 12%; in footwear and footwear parts (ISIC 152) 5.9%; and in manufacture of textile products, except gar-ments (class 1392) 5.3% of the amount;

- The rest of Asia (excluding China, South Korea, and Ja-pan) was second in origin of external purchases of footwear (ISIC 152) with 30%, and of woven textile products (class 1312) 10.5%; and number 3 in the group of basic forms and other rubber products (class 2219) with 18.9%, and number 4 in synthetic and man-made fibers (ISIC 203) with 11.6%;

- Mexico is the third supplier, in the annual average for the three years, for plastics in primary forms (class 2013) with 9.9%; synthetic and man-made fibers (ISIC 203) 12%; other chemical products (class 2029) 10.4%; and paints, varnishes, inks and mastiques (class 2022) 8.1%.

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Industrial free-trade zones

Lastly, we should mention the industrial free trade zones in Colombia, a destination where goods sold (exported) are pro-cessed, and the origin of purcha-ses (imports) of products manu-factured in those zones11_/, due to special customs and foreign trade regulations. Total FOB ex-ports from the regional customs territory to the free-trade zones increased from USD 238.4 mi-llion in 2015 to USD 551 million in 2016, and USD 523 million in 2017; and the annual FOB amou-nt of imports went increased from USD 1557 million to USD 1480 million and USD 1706 million FOB during the same period, with an average annual share of 1.3% for exports and 3.4% for imports du-ring the three years. For industrial products, the percentages were 2.6% in sales from the national customs territory, and 3.6% in ex-

11_/ With respect to the improvement of goods from free trade zones, Colombian customs le-gislation defines the exit of products from the national customs territory as exports; but if the transformed products are shipped from the free trade zone to other countries, those were not identified in DANE’s current statistics as des-tination markets; the legislation also defines as imports the entry into the customs territory of goods produced in the industrial free trade zone, but the raw materials and inputs from other countries that entered the free trade zone from other countries to be processed or their country of origin are not included in DIAN’S cu-rrently available imports information.

ternal purchases12_/, as reported by DANE and DIAN.

With respect to the ISIC groups, the largest relative movements of merchandise exiting the national customs territory and entering industrial free-trade zones took place in: plastics in primary forms (class 2011) 2.8%; and other chemical products (class 2029) 1.2%. In terms of imports from industrial free- trade zones, were mainly other textile items (class 1399) with 8.2%; strings, ropes, and netting (class 1394) 6.4%; plastic items (class 2229) 6.7%; paints, varnishes, inks and mas-tiques (class 2022) 3.9%; and other chemical products (class 2029) 1.1%.

Indicators of trade openness

The levels of trade openness, measured as the ratio of the va-lue of exports and of domestic production, and imports with res-pect to apparent consumption, are shown in Table 11. There you can observe the trends for both indicators throughout the 3 years in the categories of industrial pro-

12_/ Unfortunately, detailed information by country and by sector, of the entry of goods used for productive activities in Colombian industrial free trade zones is not available for consultation, nor information about the exit of manufactured pro-ducts to foreign markets.

ducts in this analysis for which the necessary official information is available.

The openness to exports of ma-nufacturing production increased by 0.6% percentage points (pp) from 2015 to 2016, and another 1.8 percentage points in 2017, from 19.3% to 21.7% during the three years, and resulting, in part, in the deterioration of the gene-ral economic conditions which hindered the performance of the domestic industrial production. In addition, the apparent industrial consumption that is met through imports, decreased from 42.6% in 2015 to 38.8% in 2016, and increased to 40.2% in 2017. This has been affected by a decrease in production, the flows of foreign trade in goods, and the develop-ment of internal demand.

As mentioned earlier, the recent application of ISIC Rev. 4 adapted for Colombia to DANE’s industrial statistics, and the structure of the new monthly manufacturing sur-vey, limit historical comparisons of both indicators for those codes that do not have a one-to-one co-rrespondence with the ISIC Rev. 3 codes. For this reason, some of the sector data for the measu-rement shown in Table 11 is not available.

46

TABLE No. 11COLOMBIA: COMMERCIAL OPENING OF THE INDUSTRIAL GROUPS OF INTEREST T

AND OF THE MANUFACTURING INDUSTRY, 2015 - 2017

INDUSTRIAL GROUP (ISIC Rev 4) 2015 2016 2017

Data given in percentages

Source: Acoplásticos, prepared using trade information from DANE - DIAN and Monthly Manufacturing Survey (MMS) - December 2017 by DANE. 1_/ The figure for real production from the december 2017 MMS is for division 13 of the ISIC 4, and does not allow separation by groups.

PERCENTAGE OF PRODUCTION EXPORTED 131 Textile preparation and weaving 9,2 7,7 n.d. 1_/

139 Other textile products, except garments 22,1 20,5 n.d. 1_/

152 Footwear 9,1 7,4 8,8201 Basic chemical substances 43,8 41,1 41,0202 Other chemical products 21,9 20,0 20,7221 Rubber products 41,4 30,7 32,6222 Plastic products 15,8 15,0 15,1 TOTAL MANUFACTURING INDUSTRY 19,3 19,9 21,7 CONSUMPTION MET THROUGH IMPORTS 131 textile preparation and weaving 51,0 51,0 n.d. 1_/

139 Other textile products except garments 37,4 33,2 n.d. 1_/

152 Footwear 49,6 43,4 45,3201 Basic chemical substances 72,5 70,0 70,1202 Other chemical products 31,7 29,3 28,7221 Rubber products 88,6 86,4 86,6222 Plastic products 23,8 22,7 23,6 TOTAL MANUFACTURING INDUSTRY 42,6 38,8 40,2

When the information by sector is available, the export and import openness indicators had decre-asing percentages for 2016, and had increased or held constant percentages during 2017.

The share of the value of exported production was above the average for the manufacturing industry for

the groups of basic chemical subs-tances (ISIC 201) with 42% annual average, and for basic forms and rubber products (ISIC 221) with 34.9%. The groups for plastic ma-nufactured items (ISIC 222) and footwear (ISIC 152) have lower openness levels than the average for the industry during the 3 year: 15.3% and 8.4%, respectively.

As far as the apparent consump-tion that was met with imports during the period studied, the average percentages are higher than those for the industrial ag-gregate in basic forms and rubber products (ISIC 221) with 87.2%, basic chemical substances (ISIC 201) 71%, and footwear (ISIC 152) 46%. The openness of the domes-tic market to external purchases

47

for the group of plastic products (ISIC 222) was 23.4% on average, lower than the number for the in-dustry as a whole, with variations during the three-year period.

A comparison of the import and export openness indicators for the entire manufacture and the way they evolved, shows that both increased at the end of the three

years and what is expected to be the beginning of a recovery after the difficult and uncertain econo-mic and domestic and internatio-nal setting of prior years.n

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