Trade Facilitation

Description

According to the World Bank’s Logistics Performance Index (LPI) (2012) which measures countries’ trade logistics efficiency, Colombia was ranked 64th out of 155 countries. Its overall performance is better than the averages of the Latin American and Caribbean region and upper middle income group. While Colombia excels in customs, logistics competence, and timeliness, it lags behind in tracking and tracing. The OECD Trade Facilitation Indicators (2013) also points out streamlining of procedures, involvement of the trade community and internal/external border agency cooperation as strengths of the Colombian trade facilitation indicators, whereas automation stands out as its weakness. According to the World Bank Doing Business Report (2013), trading across border is more difficult in Colombia than the regional average with respect to the cost. In order to export and import one standard container of goods, Colombia pays 60% more (USD 2,355 for export and USD 2,470 for import) than the average cost of Latin America and Caribbean region (USD 1,283 for export and USD 1,676 for import). Two thirds of the Colombian costs are due to inefficient inland transportation and handling. However, with respect to the time, exporting and importing the container takes 3 to 5 days less in Colombia (14 days for export and 13 days for import) than the regional average (17 days for export and 19 days for import).

Logistics Performance Index (LPI): Country Comparison
Logistics Performance Index – Evolution
Source: World Bank, 2012, Logistics Performance Index (LPI)

Note: Source: World Bank, 2012