The Republic of Colombia is located in the Northwest corner of South America and is surrounded by the Pacific Ocean and the Caribbean Sea. It is bordered by Panama, Brazil and Venezuela to the North and West, by Peru and Ecuador to the South and East. Because of its location, Colombia is topographically diverse and enjoys many climates. The population is 36 million and its capital is Santafe de Bogota. Colombia became a republic in 1819 and is one of the oldest democracies in Latin America. The government is headed by a President elected by popular vote every four years, and is balanced by a two-chamber system comprised of a Senate and a House of Representatives.

Colombia exports many of its natural resources including oil, natural gas, coal, iron ore, nickel, gold, copper, emeralds, coffee, flowers, bananas, textiles and leather goods. Colombia is a free market economy and foreign investment in all sectors is welcome with few exceptions. These exceptions include defense and toxic waste. Portfolio investments require pre-approval and are subject to local regulations and are under the supervision of the local Superintendence of Securities. Investment in the financial sector requires pre-approval of the Superintendence of Banks. The banking system in Colombia is highly regulated and there are tight foreign exchange controls. The currency is the Colombian peso (SWIFT code COP).

Colombia has set up a number of free trade zones that offer incentives to investors and exporters. These zones are operated by the private sector and include the duty free import of machinery and other equipment for plant development. The import of raw materials and other inputs is exempt from duty, and there is an exemption from corporate tax on earnings from exports. Companies operating in these free trade zones may freely repatriate profits and capital, and also enjoy accelerated customs procedures.

Colombia has experienced difficulties in its economy over the last 3 years. However, the approval of Plan Colombia by the US, which provides approximately USD $2 billion in aide, will help to accelerate necessary changes and peace negotiations in order to regain stability.