Colombian footwear manufacturers see good and bad side of US free trade agreement
14/06/2012
To qualify for the benefits of tariff-free shipping to the US market, Columbia’s footwear manufacturers, many of whom are based in the province of Santander, have to guarantee that their shoes are made in Columbia and, in addition, that 75% of the materials and components in the shoes are also from Columbia.
Because, to date, the South American country has no official agency for confirming product origin information, the footwear companies are having to take responsibility for making their own declarations to satisfy the terms of the free trade agreement, which is proving a sizeable responsibility for the smaller companies among them. They have to source their materials and comonents in Colombia, but they also have to ask their suppliers for data sheets showing where they source their materials further upstream in the supply chain.
Wilson Mesa, a local industry representative, recently told local media: “I buy heels in Cali, lining in Bogotá and soles in either Bucaramanga or Cúcuta (all in Colombia). But where does the raw material for those products come from? It’s a complicated process for us to find out and it’s this cloak of uncertainty that is preventing some companies from having a go at exporting to the US.”
Mr Mesa said he thought there must be at least 150 footwear manufacturers in Santander whose shoes are of sufficiently high quality to make an impact in export markets. “Demand for our shoes is high,” he continued, “especially among the owners of small fashion boutiques; that’s our market niche. We have to shake off our fear and learn to deal with those buyers.”
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