Colombia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in colombia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

•    Openness to, and Restrictions upon, Foreign Investment, 
•    Investment and Taxation Treaties,
•    Legal Regime,
•    Industrial Policies,
•    Protection of Property Rights,
•    Financial Sector,
•    State-owned Enterprises,
•    Corruption,
•    Labor Policies and Practices,
•    Political and Security Environment, and
•    U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.

Executive Summary - Colombia

Colombia is a market of 52.7 million people, with an abundance of natural resources and an educated middle class. Its historically strong investment track record has been challenged in recent years due to:

  • regulatory uncertainty,
  • economic slowdown, and
  • fiscal issues.
     

GDP growth dropped from 7.3 percent in 2022 to 0.6 percent in 2023; it modestly recovered to 1.7 percent in 2024. President Gustavo Petro’s administration, which took office in August 2022, has pushed the concept of domestic sovereignty and nationalization in key economic sectors, such as:

  • health,
  • electricity, and
  • pension funds management.
     

This has created higher levels of uncertainty among the private sector. Total investment recovered 7.6 percent in 2024 after declining 14 percent in 2023, but remains below 2019 levels due to:

  • elevated interest rates,
  • a high corporate tax burden, and
  • frequent regulatory changes.
     

In 2024, dollar-denominated exports stalled due to reduced sales of hydrocarbons (petroleum, its derivatives, and coal). Colombia remains below investment grade status following July 2021 downgrades by rating agencies Fitch and Standard & Poor’s.

According to the Colombian Central Bank, Foreign Direct Investment (FDI) declined 15.2 percent between 2023 and 2024, with mining experiencing the deepest contraction. FDI in non-extractive activities grew 3.4 percent and represented 75 percent of the total. According to the Colombian Statistics Department (DANE), roughly half of the Colombian workforce in metropolitan areas is employed in the informal economy, a figure that increases to four-fifths in rural areas. In 2024, there were 23 million employed people, a 247,649 increase over 2023. In 2024, Colombia’s unemployment rate was 10.2 percent (or 2.6 million people), stable from 2023.

The Colombian government passed a pension reform in 2024 that was slated to take effect in July 2025, pending a Constitutional Court review, but was flagged for a procedural flaw in the legislative process and returned to the lower house, which re-approved the measure. As of July 2025, the measure is again pending Constitutional Court review. The reform aims to reduce the system’s regressivity and increase coverage. The Petro administration, which passed a tax reform in 2022, has made unsuccessful attempts at subsequent tax reforms but aims to pass a second reform. Temporary taxes on the following—initially part of emergency measures in the Catatumbo region—could become permanent if Congress and the Constitutional Court approve the proposed reform:

  • hydrocarbon exports,
  • online gambling, and
  • a stamp tax.
     

In June 2025, Law 2466 on Labor Reform partially amended labor regulations to expand worker protections, including:

  • raising night and holiday pay,
  • formalizing apprenticeships and gig work,
  • limiting fixed-term contracts, and
  • strengthening social security coverage to promote decent and dignified employment.
     

After a series of unsuccessful health reform attempts, Colombia’s National Superintendency of Health (Supersalud) took over several private health insurance providers, causing service disruption and financial volatility. Due to lack of financing, Colombia’s health system is steadily deteriorating; many companies are not being paid for services and hospitals across the country are closing specialized services.

Colombia has a comprehensive legal framework for business and foreign direct investment (FDI). The 2012 U.S.-Colombia Trade Promotion Agreement (CTPA) has strengthened bilateral trade and investment. Colombia’s dispute settlement mechanisms have improved through the CTPA and several international conventions and treaties. Several companies have expressed concern about reduced levels of investment protection following a Free Trade Commission decision interpreting standards of investment protection under the CTPA published January 20, 2025. The government of Colombia stated that this note clarifies key aspects of investment protection, ensuring stability and certainty for U.S. investors in Colombia. It prevents misinterpretations that could lead to unnecessary litigation and confirms that only legitimate investments in compliance with national regulations can benefit from the agreement’s protections.

Weaknesses include intellectual property rights (IPR) protection. Colombia has yet to implement certain IPR-related CTPA provisions and the government has supported a “flexible” IPR approach to boost domestic production and reduce import reliance, particularly in pharmaceuticals and agriculture. The Ministry of Health (MOH) issued a compulsory license (CL) in October 2024 as a price control measure, stripping pharmaceutical patent rights before the patent expired. It has stated publicly it plans to use CLs for up to 20 other medicines, but has yet to do so. Counterfeit goods remain widely available in Colombia’s “San Andresitos” markets, which were listed for the first time since 2013 in the U.S. Trade Representative’s (USTR) 2024 Review of Notorious Markets for Counterfeiting and Piracy.

Colombia became the 37th member of the Organization for Economic Cooperation and Development (OECD) in 2020, bringing an obligation to adhere to OECD norms and standards in economic operations. Previous governments made a concerted effort to develop efficient capital markets, attract investment, and create jobs. The central bank developed a new instant payment system called Bre-B that is scheduled to begin operating in September 2025. Bre-B is designed to facilitate instant, real-time payments between any bank or digital wallet in Colombia and aims to:

  • reduce cash usage,
  • promote financial inclusion, and
  • foster the development of Colombia’s fintech sector.


Despite the 2016 peace agreement between the government and the demobilized Revolutionary Armed Forces of Colombia (FARC), several powerful narco-criminal operations still pose threats to commercial activity and investment, especially in rural zones outside of government control. The Petro administration is seeking negotiations with illegal armed groups not part of the 2016 peace accord under a policy called “Total Peace.” After three years, the Total Peace policy has yet to yield significant results, and many armed groups have splintered and taken advantage of the truce to expand the area under their control and increase coca production. The presence of illicit economies run by armed groups, often entangled in legal supply chains in some parts of Colombia, presents a challenge to the development of reliable, sustainable livelihoods.

Corruption remains a significant challenge. U.S. and other foreign investors voice complaints about:

  • non-tariff,
  • regulatory, and
    bureaucratic barriers
    to trade, investment, and market access at the following levels:
  • national,
  • regional, and
    municipal.

 

Stakeholders express concern about more limited access to some ministries and agencies in the Colombian government during the Petro administration. Investors from across sectors cite a lack of effective and timely consultation with regulatory agencies in decisions that affect them. Stakeholders note concern regarding cabinet-level and staff turnover and the loss of technical expertise in government institutions. None of the government’s original cabinet members remains in position, with almost 60 different ministers filling the 21 positions in less than three years. By comparison, the previous president, Ivan Duque, had 41 ministers in 18 ministries over four years.

Investors also note concern regarding slow processing and inconsistent decisions at food and drug regulator INVIMA. Companies are often reluctant to voice these concerns individually with the government and prefer to raise them through industry associations.

View the Colombia Investment Climate Statement.

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