Colombia trade with Venezuela could hit $1.2b, says minister

CARTAGENA: Colombia’s trade with Venezuela could hit $1.2 billion this year, its commerce minister German Umana said on Friday, ater the country’s new President Gustavo Petro pledged to revive trading relations with its South American neighbour.

Relations broke down in early 2019 ater Caracas objected to members of the Venezuelan opposition trying to send trucks loaded with food and medicine across the border from Colombia.

But on Thursday the two countries each named their ambassadors to the other, days ater letist Petro was sworn in as Colombia’s president.

Growth of trade will depend on the recovery of Venezuela’s economy, which collapsed between 2015 and 2020, Umana said, acknowledging improvements seen over the last two years.

“If the border is opened, if the smuggling issues are resolved ... we’re going to see trade of $1 billion or $1.2 billion this year, not the forecast $600 million,” he told reporters on the sidelines of the Colombian Business Association’s annual conference in the port of Cartagena.

Trade could grow to $4.5 billion by 2026, Umana added.

Colombia’s new Minister of Mines and Energy Irene Velez earlier said that the government in Bogota would grant no new gas contracts and could import gas from Venezuela if reserves from an existing 180 projects are insufficient to carry it through the transition to cleaner, renewable energy.

Turning from fossil fuels to renewables was a key Petro campaign promise.