Environmental protection laws
In Colombia, environmental protection laws have as objective to take care of natural resources that are located in the country. All kind of industry must comply these laws in order to assure its course and be aware of environmental changes that can affect them.
Colombia has one of the highest indicators in the world nevertheless it is expected that once the government signs the Process Peace, the military budget might be dedicated to cover different areas of development, such as Education, Technology, Infrastructure and of course this will open new opportunities for a project like ours.
Level of defense expenditures
Military expenditure (% of GDP) data from SIPRI (Stockholm International Peace Research Institute), are derived from the NATO definition, which includes all current and capital expenditures on the armed forces.
Legislation on equal employment
Article 13 of our Colombian Political Constitution
Article 10 of the Colombian Labor Code
In Colombia, legal regulation states the prohibition of all forms of discrimination based on gender, gender identity and sexual orientation.
According to the above mentions Articles, it is understood that “each individual is born free and equal before the law, and guarantees the same protection and treatment from particulars and authorities as well”.
Every individual is covered with the same rights, freedoms and opportunities with no discrimination on grounds of gender, race, nationality or religion, among others. On the other hand, our Labor Code, states that all employees are equal.
We may conclude that Colombian legislation proscribes any kind of unequal or discriminatory practices.
Level of government subsidies
Colombia has adopted a government-subsidized strategies aimed at protecting and promoting certain productive segments such as health insurance scheme, fuels, Cash Desks of Family Compensation, housing subsidies, agricultural products (coffee, rice) and the Unemployment Subsidy Program among others. When assessing the effects of this subsidies.
We interpret that the effect of these government strategies would benefit us, as they could be intended to promote employment and industry development.
Antitrust legislation
Antitrust legislations in Colombia have been established since the end of the 1950s, with the law 155 of 1959, this law, which stills largely in effect, states that are prohibited activities and agreements that directly or indirectly restricts the production, distribution, consumption of products, raw materials and services; in general, any kind of practices, procedures designed to limit free competition or unfair practices. Moreover, this law has received changes and updates, the last update was by the law 1340 of 2009, with the purpose of bring up to date norms and legislations that guarantee equitable practices in the modern markets (taking into account free trade agreements, globalization and telecommunication practices). Colombian antitrust legislations can benefit our industry, because, implementing more norms about equitable competition and business practices can assure that providing our service will be easier with no limitations or possible restrictions of possible companies in the future.
Sino-American relationships
China’s economic positioning, its increasing population and its growing relationship with Latin America have been factors that added to a diplomatic relationship of over 30 years became the driving force in the creation of an institution that would effectively promote relations between China and Colombia. Thus the Colombian – Chinese Investment & Commerce Chamber was born in the context of Expo Shanghai in 2010. This was possible with the support of both governments, Colombia’s most important guilds and distinguished entrepreneurs.
Russian-American relationships
“Colombia has identified Russia as a strategic partner in bilateral and multilateral relations. Their economies are complementary and Colombia has an interest in developing the exchange of goods, services and products. There are some great opportunities there for our entrepreneurs and exporters,” Diego Tobon, Colombia’s ambassador to Russia said.
Russia is currently the principal buyer of Colombian flowers in Europe and also buys coffee, cacao and textiles, Tobon said.
“Russia is the world’s principal buyer of beef, chicken, fish and shrimp… here is a very big opportunity for the agricultural sector, as well as other sectors of the Colombian economy,” Tobon said.
European-American relationships
Colombia is a dynamic and open economy, of growing regional importance and a principal partner for the EU in Latin America.
The EU’s relations with Colombia are built on political dialogue, trade, and development cooperation, and cover a wide range of bilateral, regional and multilateral issues, whilst also helping to address the legacies of its internal armed conflict.
Governmental regulations
As well as other companies, we offer a service/product meaning that we must follow Governmental laws that protect the rights and obligations of the community and its workers. All of this must be done because of the 258 Law of 1987 that certifies handcrafting as a profession. Colombian Law (36 of 1987) considers a handcraft as the person exercising a creative professional activity related to a specific job and according to their knowledge and technical and artistic skills within a production process. Handcrafting has the following categories: apprentice, official, instructor and handcraft master.
http://www.artesaniasdecolombia.com.co/PortalAC/C_nosotros/normatividadquerigealaentidad_362
http://www.pillku.com/article/accion-ciudadana-una-ley-ninguna-reglamentacion/
Changes in tax laws
In 2016 is going to be a new tributary change that will makes that more Colombians have to declared rent, we don't know exactly the percentages of the increase of taxes but we know that the IVA already increased from 16% to 19% in the first trimester of the year.
We know the ups and downs that the petroleum industry has being suffering so the government has a rent about 20 billion pesos, that will make a deficit of 3,6% in the Colombian PIB, so we see that at least 30 firms of this sector that in the past was the stronger in Colombia now it’s not, they declared in bankrupt, so this let a deficit very big in the rent tax.
The special tariffs are given for the company or ONG that are make for help and are nonprofit organization, so this doesn't affect our industry directly.
Special tariffs
Voter participation rates
In the years 1958, 1970, 1974 and 1998 were when Colombian people had a major participation in presidential elections over 50% in votes. It means that in the latest years people have not had a great interest in this kind event.
This is a very big problem because it means that people nowadays prefers stay at home and do not go to vote.
Number of patents
The number of patents in Colombia is not very big. Colombia has 200 times less patents than USA each year. It means that for one new patent in Colombia there are 200 new patents in USA.
Each year Colombia presents approximately 2000 new patents per year, but the problem is that 1110 are made by foreign people who live in the country and just 134 are made by Colombian people.
Changes in patent laws
The government always tries to protect the new ideas and its inventors and it is made by patent. The government creates laws to save the new ideas and gives to its inventors the opportunity to taking care of their heritage.
Things like no requirement to documenting this is one of the main regulations that exist today, are prohibited from the Patent Office to require documents and rest in your files, you do not need to file evidence on the name change the applicant compels the Patent Office to develop online mechanisms to complete the formalities.
Potential development of substitute products
The main substitute products we found are those handles and accessories that are not handmade and probably, they have a lower price, better marketing and increased use of technology which would generate a higher production.
In order to compete with these threats and achieve our vision (which is to be recognized by our excellent handicrafts in Colombia), we have to create strategies that can help us to be more competitive with alternative services
Location and severity of terrorist activities
According to the Institute for Economic and Peace Colombia is ranked in the position 146 with a score of 2.720 on the last report of the Global peace index posted by the Institute for Economic and Peace and regionally our country is the most violent of South America. Colombia’s score continued to suffer as a result of its performance in refugees, which are the product of its ongoing conflict with the Fuerzas Armadas Revolucionarias de Colombia (FARC) guerrillas, as well as erosion in the score for political terror (as government actions against rebels continued). Ongoing peace negotiations with the government offer some hope of an improvement in the medium term. Therefore, the increase of severity of terrorist attacks affects the whole industry and the economy of the country, reducing people´s investments, the demand of domestic cleaning services, it also reduces possible future and actual markets, because employees cannot be introduced into dangerous activities or dangerous locations in the country.
http://www.visionofhumanity.org/sites/default/files/Global Peace Index Report 2015_0.pdf
http://www.elcolombiano.com/colombia-es-uno-de-los-paises-con-mas-ataques-terroristas-en-el-mundo-YD656133
Federal government budget deficits
Colombia recorded a Government Budget deficit equal to 2.40 percent of the country's Gross Domestic Product in 2014. Government Budget in Colombia averaged -3.63 percent of GDP from 2001 until 2014, reaching an all time high of 0.23 percent of GDP in 2005 and a record low of -8.47 percent of GDP in 2004. Government Budget in Colombia is reported by the Ministry of Finance and Public Credit Republic of Colombia.
Import/Export regulations
Most of Colombia’s duties have been consolidated into three tariff levels: 0 percent to 5 percent on capital goods, industrial goods, and raw materials not produced in Colombia; 10 percent on manufactured goods, with some exceptions; and 15 percent to 20 percent on consumer and "sensitive" goodsDespite the efforts mentioned above to consolidate and simplify its tariff rate schedule, Colombia's numerous economic integration agreements have fostered overlapping tariff application.ost agricultural product import licenses issued by the Ministry of Commerce are issued automatically and are "free". However, there are a number of agricultural products that need pre-approval before the Ministry of Commerce will issue an import permit. Also this crate an impact or affect our company because we import different products and also we need to pay taxes and special licenses.
Changes in patent laws
The government always tries to protect the new ideas and its inventors and it is made by patent. The government creates laws to save the new ideas and gives to its inventors the opportunity to taking care of their heritage.
Things like no requirement to documenting this is one of the main regulations that exist today, are prohibited from the Patent Office to require documents and rest in your files, you do not need to file evidence on the name change the applicant compels the Patent Office to develop online mechanisms to complete the formalities.
Lobbying activities
Lobby refer to those activities done by organized groups, associations and people, including people in the corporations, private sector fellow government or legislation, who try to influence in the decisions taken by government charges. According to the studies, Colombia is the king of lobbying, because our country invest almost 116 million of dollars in export promotion, information management and public relations in Washington for the own benefits.
Special local, state, and federal laws
When a new firm enters to a market, it is necessary for it to have a knowledge in special laws that are regulating the course of different organizations in the business. These laws can be classified according to its approach; there are commercial laws, competitive laws, and cyber laws, among others.