ANCORA
SportWear
Some Political, Governmental and Legal Variables
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SportWear
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SportWear
1. Governmental regulations or deregulations
Colombia has been one of the people affected by the global financial crisis, but reforms and regulations have been responsible to intervene to help resist face this big problem. The Colombian Government has achieved regular public the Administration so that it becomes more accessible, equally it is giving much importance to enterprises and citizens in the simplification of procedures for impact. at the same time colombia has grown and improved its norms making a things.
Colombia should give more importance to the regulations, monitoring and reviewing procedures, and the justifications to keep better track of regulations. All this leads to the companies respect the regulations proposed by the Government, learning how to perform in front of situations together with other countries, increasing best quality for comprehensive agreements. An example are the non-tariff import or export permits regulations.
Eumed.net, (n.d.). Clasificacion De Aranceles. [online] Available at: http://www.eumed.net/libros-gratis/2014/1396/aranceles.htm [Accessed 17 Feb. 2016].
Noticias de Trabajo y Actualidad Laboral - elempleo.com, (2016). Extranjeros solicitan regularización migratoria en Colombia. [online] Available at: http://www.elempleo.com/colombia/noticias_laborales/extranjeros-solicitan-regularizacin-n-migratoria-en-colombia-------------------/6587646 [Accessed 17 Feb. 2016].
Oecd-ilibrary.org, (2013). Regulatory Policy in Colombia - Statistics - OECD iLibrary. [online] Available at: http://www.oecd-ilibrary.org/governance/oecd-reviews-of-regulatory-reform-colombia-2013_9789264201941-en [Accessed 17 Feb. 2016].
2. Changes in Tax Laws
http://www.dian.gov.co/dian/14cifrasgestion.nsf/pages/Recaudo_tributos_dian?OpenDocument
2016, E. (2015). El impuesto del IVA incrementaría al 19% en el 2016. [online] Dinero.com. Available at: http://www.dinero.com/pais/articulo/colombianos-tendrian-pagar-mas-impuesto-del-iva-2016/217607 [Accessed 16 Feb. 2016].
*
Dian.gov.co, (2015). Cifras y gesti�n - Estad�sticas fiscales -
Recaudo_tributos_dian - DIAN. [online] Availab<aaaaa776le at: http://www.dian.gov.co/dian/14cifrasgestion.nsf/pages/Recaudo_tributos_dian?OpenDocument [Accessed 16 Feb. 2016].
PORTAFOLIO.CO, R. (2016). Los impuestos que pagarían los colombianos en el 2016 - Finanzas personales - El Tiempo. [online] El Tiempo. Available at: http://www.eltiempo.com/economia/finanzas-personales/impuestos-para-el-2016-que-pagarian-los-colombianos/16474336 [Accessed 16 Feb. 2016].
3. Special Tariffs
Tariffs the tran benefits for each country exporting goods to different parts of the world, this helps Colombia to increase national income and improve its economy. Colombia has been consolidated into 3 tariff levels:
0 percent to 5 percent on capital goods, industrial goods, and raw materials not produced in Colombia; 10 percent on manufactured goods, with some exceptions; and 15 percent to 20 percent on consumer and "sensitive" goods.
But they have also consolidated exceptions such as carts, meat, rice, cream milk, all these exceptions subject to another tax time.
Aduanas.gub.uy, (n.d.). ADUANAS - Arancel de Exportaci�n. [online] Available at: http://www.aduanas.gub.uy/innovaportal/v/2490/8/innova.front/arancel-de-exportacion.html [Accessed 17 Feb. 2016].
Eumed.net, (n.d.). Clasificaci�n De Aranceles. [online] Available at: http://www.eumed.net/libros-gratis/2014/1396/aranceles.htm [Accessed 17 Feb. 2016].
Export.gov, (n.d.). Trade Regulations and Standards in Colombia. [online] Available at: http://www.export.gov/Colombia/doingbusinessincolombia/traderegulationsstandards/index.asp [Accessed 17 Feb. 2016].
4. Political Action Committees
Political Action Committees (PACs) are interest groups (as by an industry or an issue-oriented organization) that were created with the sole purpose of raising money from its members and contribute them to candinndates and political parties.
some examples are:
> Honeywell International.
> Lockheed Martin.
> AT&T Inc.
> Northrop Grumman.
> National Beer Wholesalers Assn.
> American Bankers Assn.
> Credit Union National Assn.
> Intl Brotherhood of Electrical workers.
This problem directly affects companies, because many times when democracy and transparency does not exist in a Government, those who are the decision-makers and represented (example in Congress) not to take the best decisions for the well-being of the people nor a common welfare, but for the well-being of each representative.
Merriam-webster.com, (n.d.). Definition of POLITICAL ACTION COMMITTEE. [online] Available at: http://www.merriam-webster.com/dictionary/political%20action%20committee [Accessed 17 Feb. 2016].
Opensecrets.org, (2016). Treasure State PAC to PACs/Parties | OpenSecrets. [online] Available at: https://www.opensecrets.org/pacs/pac2pac.php?cycle=2016&cmte=C00433680 [Accessed 17 Feb. 2016].
6. Number, Severity and Location of Government Protests
In 2015, a total of 283 protests were presented in 27 departments of colombia, most of the protests were:
1) plants and concentrations (70).
2) marches and demonstrations (69).
3) blocks of mobility (50).
4) cessation of activities (38).
Agents more assets to the protests were:
1) habitantes de comunidades residenciales (25%)
2) transportadores (17%)
3) sector educativo (35%)
4) grupos étnicos (27%)
Areas where more demonstrations were presented:
1) Bogota (43)
2) Bolivar (38)
3) Antioquia (26)
4) Valle del Cauca (24)
5) Cauca (18)
BARBOSA, F. (2015). América Latina, una región en pleno estado de ebullición - Latinoamérica - El Tiempo. [online] El Tiempo. Available at: http://www.eltiempo.com/mundo/latinoamerica/corrupcion-en-gobiernos-de-america-latina/16404935 [Accessed 17 Feb. 2016].
ElEspectador, (2015). En el año se han presentado 283 protestas. [online] Available at: http://www.elespectador.com/noticias/nacional/el-ano-se-han-presentado-283-protestas-articulo-549376 [Accessed 17 Feb. 2016].
5. Voter Participation Rates
Colombia.com, (2015). Cifras - Elecciones Regionales - 2015 - Elecciones - Colombia.com. [online] Available at: http://www.colombia.com/elecciones/2015/regionales/cifras/ [Accessed 13 Feb. 2016].
Colombia.com, (2015). Elecciones Regionales - 2015 - Elecciones - Colombia.com. [online] Available at: http://www.colombia.com/elecciones/2015/regionales/ [Accessed 13 Feb. 2016].
DOMINGO, R. (2015). En elecciones, abstención se redujo y voto en blanco siguió igual - Partidos políticos - El Tiempo. [online] El Tiempo. Available at: http://www.eltiempo.com/politica/partidos-politicos/abstencion-en-elecciones-2015-y-voto-en-blanco/16413181 [Accessed 13 Feb. 2016].
7. Number of Patents
2015 had 3,177 patent applications, with an increase of 8.2% compared to 2014 (2,934 patent applications).
Most patents were registered Colombian non-residents, which asked 2,305 and an amount of 872 residents.
These figures show that many residents will not seek patents for different reasons, either because it is too expensive or do not see the need for it. on the contrary foreigners believe necessary as to protect their creations.
Portafolio.com.co, (2016). En 2015 el crecimiento en el uso de patentes fue leve. [online] Available at: http://www.portafolio.co/negocios/patentes-colombia-2015 [Accessed 17 Feb. 2016].
Portal, A. (2016). Solicitudes de patentes en 2015 llegaron a 3.177, 8,2% más que 2014. [online] Aciem.org. Available at: http://www.aciem.org/home/index.php/prensa/noticias-aciem/36-aciem/prensa/noticias-diarias/interes-general/16068-solicitudes-de-patentes-en-2015-llegaron-a-3-177-8-2-mas-que-2014 [Accessed 17 Feb. 2016].
8. Changes in Patent Laws
Colombia is on a U.S. international watchlist for countries who have insufficient intellectual property right regulations, after reversing legislation in 2013 that was intended to help the country catch up with U.S. and international standards on intellectual property rights (Hinchliffe, 2014). The country has shown progress towards improving the patent law system by better handling patent law applications, but the country must create new patent laws in order to complete with requirements established in the Free Trade Agreement made with the U.S., and which they still haven’t done (Caracol, 2014). This demonstrates that Colombia is better the protection of patents and intellectual rights, but is still a volatile (or at least a non-conducive) environment for inventors. In our industry this could present challenges in terms of inventing new fabrics or fabrication processes.
Caracol. (2014). “EE.UU. pide a Colombia retomar gestión de ley sobre propiedad intelectual.” Caracol.com.co. http://www.caracol.com.co/noticias/internacionales/eeuu-pide-a-colombia-retomar-gestion-de-ley-sobre-propiedad-intelectual/20140508/nota/2214421.aspx accessed February 16, 2016.
Hinchliffe, T. (2014). “Colombia on intellectual property rights watchlist: US Report.” ColombiaReports.com. http://colombiareports.com/us-calls-colombia-implement-intellectual-property-laws/ accessed February 16, 2016.
9. Environmental Protection Laws
The Colombian Constitution does include various articles regarding the environment, including an article that says “all people have the right to enjoy a healthy environment,” (UPME). The State has also created, with the help of cooperative groups PROPEL (Corporación Promoción de la Pequeña Empresa Ecoeficiente Latinoamericana) and FUNDES (Fundación Suiza para el Desarrollo Sostenible en América Latina) a guide for best production practices for the textile sector, targeted at eliminating water waste and reducing contamination at its source (FUNDES, 2010). If companies fail to comply environmental protection policies, then sanctions can be put upon these companies to compensate for the environmental damages they have done (Avané, 2014). In general, Colombia is working to improve policies on the protection of its environment, and is something that we will have to take into consideration when producing our products.
Avané, L. (2014). “Con sanciones protegen el medio ambiente.” ElMundo.com. http://www.elmundo.com/portal/noticias/territorio/con_sanciones_protegen_el_medio_ambiente.php#.VsMuXpMrLVo accessed February 16, 2016.
FUNDES Colombia. (2010). “Guía de Buenas Prácticas para el Sector Textiles.” SIAME.gove.co. http://www.siame.gov.co/siame/documentos/Guias_Ambientales/Gu%C3%ADas%20Resoluci%C3%B3n%201023%20del%2028%20de%20julio%20de%202005/INDUSTRIAL%20Y%20MANUFACTURERO/Gu%C3%ADa%20Buenas%20Pr%C3%A1cticas%20Textiles.pdf accessed February 16, 2016.
UPME. “Normatividad Ambiental y Sanitaria.” UPME.gov.co. http://www.upme.gov.co/guia_ambiental/carbon/gestion/politica/normativ/normativ.htm#BM1__NORMATIVIDAD_GENERAL accessed February 16, 2016.
10. Level of Defense Expenditures
Colombia spends on average around 3.0 - 3.9% of its GDP on defense yearly, as of the last 10 years, spending 3.5% of its GDP on defense in 2014 (World Bank). A majority of the the military expenditures invested by Colombia go to fighting internal wars with armed groups such as the FARC, the ELN and drug trafficking groups (Paige, 2014).
Paige, C. (2014). “Colombia military expenditures increase 13% in 2013.” ColombiaReports.com. http://colombiareports.com/colombia-military-expenditures-13-2013/ accessed February 16, 2016.
World Bank. (2016). “Military expenditure (% of GDP).” WorldBank.org. http://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS?page=1&order=wbapi_data_value_2014%20wbapi_data_value%20wbapi_data_value-last&sort=asc accessed February 16, 2016.
11. Legislation on Equal Employment
Colombia has put into place legislation to protect the rights of women in the workplace. For example, Colombia is one of 17 countries to have ratified the Agreement 189 of the International Work Organization, which states that the country guarantees basic rights to such as a minimum wage, overtime hours, and safe working conditions to domestic workers (El Tiempo, 2015). Additionally, the gap between men and women in the workforce is shrinking in all of Latin America, and new policies to help female entrepreneurs, to adopt better labor practices, and to provide tools to better utilize female talent in the workforce are being stilled in Colombia and other Latin American countries (Portafolio, 2013). Though there may exist some gaps in employment equality, Colombia is one of many countries working to improve employment conditions for women.
El Tiempo. (2015). “56 de cada 100 mujeres hoy tienen trabajo.” ElTiempo.com http://www.eltiempo.com/economia/sectores/igualdad-de-genero-acceso-de-la-mujer-a-la-fuerza-laboral-en-el-pais-tuvo-salto-del-24-/15772796 accessed February 15, 2016.
Portafolio. (2013). “El talento femenino, vital en los negocios a nivel global.” Portafolio.co. http://www.portafolio.co/economia/igualdad-salarios-mujeres-y-hombres-colombia accessed February 16, 2016.
12. Level of Governmental Subsidies
The Colombian government is currently providing 130,000 housing subsidies for middle income families to buy new housing at a subsidized interest rate of 0% (Minvivienda, 2014). Other subsidies that the government has provided recently include subsidies to the coffee industry in 2013, distributing 1.18 Billion COP to 379.514 coffee producers, however no subsidy has been awarded to this industry since 2014 (El Tiempo, 2015). As of now, the government’s most important subsidy is that of housing for middle income families, which could be beneficial in stimulating the economy at many levels.
El Tiempo. (2015). “Comités departamentales piden revivir subsidio al café.” ElTiempo.com. http://www.eltiempo.com/economia/sectores/comites-departamentales-piden-revivir-subsidio-al-cafe/15785217 accessed February 16, 2016.
Minvivienda. (2014). “Mi Casa Ya.” Minvivienda.gov.co. http://www.minvivienda.gov.co/mi-casa-ya accessed February 16, 2016.
13. Antitrust Legislation
Currently, there is a debate to instill an antitrust law in the Colombian telecommunications industry that would limit a company’s market share to a total of 30% of the total number of telecommunications users in the country (Portafolio, 2013). This has caused great discussion within the industry, as it would greatly affect telecommunication giants such as Claro and Movistar, who together possess 80% of the market in a form of duopoly (Portafolio, 2013). It appears, however, that difficulty in passing these type of antitrust laws in Colombia is due to the power of these multinational telecommunication companies in the country, and the government’s inability to impose control over this sector (Dinero, 2013). As of now, the antitrust laws within the county are limited, but the government is continuing to work towards instilling controls to prevent monopolies in the most sought out sectors.
Dinero. (2013). “La caída Ley Antimonopolio ya tiene plan B.” Dinero.com http://www.dinero.com/pais/articulo/la-caida-ley-antimonopolio-tiene-plan/177067 February 16, 2016.
Portafolio. (2013). “Ley antimonopolio cambiaría modelo económico del país.” Portafolio.co. http://www.portafolio.co/economia/proyecto-ley-antimonopolio-colombia accessed February 16, 2016.
20. Political Conditions in Foreing Countries
Actually the economic situation in Venezuela has affected our economy because Venezuela is one of Colombia’s largest trade partners. Exports to Venezuela amounted to $2 billion in 2014, making Venezuela one of the largest buyers of Colombian goods. Other importatnt partner is united states since FTA, for Textile industry USA is the main business partner.
How the Venezuela border crisis affects Colombia’s people and president. (n.d.). Retrieved February 16, 2016, from http://colombiareports.com/how-the-venezuela-border-crisis-affects-colombias-people-and-president/
Industria textil de colombia. (n.d.). Retrieved February 16, 2016, from http://www.eumed.net/cursecon/ecolat/co/14/industria-textil.html
21. Special local, state and Federal laws
Textile industry in Colombia is a protected industry by Colombia goverment, for this reason before to economic openness, but in teh last years with FTAs (free trade agreement) this industry had have to adapt, in several steps like tech advantage, also this industry have a slowly growth due to smuggling of fabrics.
Mirada al sector textil. (n.d.). Retrieved February 16, 2016, from http://www.tlc.gov.co/publicaciones.php?id=12780
22. Lobbying Activities
Lobby is very popular in Colombia years ago Colombia was considered King of lobbying, for instance the lobby had so much influence in the TLC with USA.
Análisis regulación lobby Colombia | Portafolio.co. (n.d.). Retrieved February 16, 2016, from http://www.portafolio.co/opinion/analisis-regulacion-lobby-colombia
23. Size of Goverment Budgets
The Budget for 2016 in Colombia will be $215,9 billions 2,5% more than 2015, the mainly objetive of goverment is achieve a economy not oildependent for this has created a rigor politic which consisit besides of not to be oildependents cut budgets in some states entities; also the goverment will destinate 40,6 billions in direct invest and 43,3 billions in invest through territorial entities. The education sector will have the major invest in 2016 with $31 billions, the next chart show the Budget by sector in 2016.
Picture taking from:(Es, Monto, Presupuesto, & De, n.d.)
Es, D. E. C., Monto, E. L., Presupuesto, E., & De, G. (n.d.). Responsabilidad scal y social en un nuevo entorno económico DEL PROYECTO DE LEY.
24. World oil, currency and labor markets
Colombia economy is oil dependent for this reason actually the low oil prices our economy growth has been decreasing, this bring other problems like currency devaluation and rising of dollar which affect imports and exports and provocate a deficit in balance of payments, for this reason the main objective of colombian goverment for 2016 is create a economy less oil dependent. Actually Colombia has been a lower unemployment rate (8.9%) after 15 years which show a good panorama in labor markets and reduction of unemployment trends so a better quality of life.
DANE. (2016). dane.gov.co. Obtenido de www.dane.gov.co/index.php/mercado-laboral/empleo-y-desempleo
25. Location and severity of terrorist activities
More than 50 years clombia has lived in a internal conflict betweenmilitary forces and FARC (fuerzas armadas revolucionarias de colombia), the present goverment has been developed a peace process, in spite of this in 2013 colombia obtained 16th place in a ranking of 162 countries where number one was the most terrorism, this conflict has been many problems to Colombia for example displacement, poverty and overpopullation in principal cities, which in turn It does not allow a fast growth around the country and affect foreing invest.
En terrorismo, Colombia está entre los 20 peores del mundo. (n.d.). Retrieved February 16, 2016, from http://www.elcolombiano.com/en-terrorismo-colombia-esta-entre-los-20-peores-del-mundo-LM842793
26. Local, state, and national elections
Colombia has a legislative term of four (4) years the people elect the follow chages: “President, Vice President, senators, representatives, governors, deputies, mayors, municipal and district councilors, members of the local boards, and in due course, the members of the Constituent Assembly and other authorities or officials point out that the Constitution” (Constituyente, 1991), the process for choose this charges througt popular vote, first citizens inscribe they ID card in registration office, the elections day citizens go to respective polling station and mark with a X the picture of your favorite candidate, at 16:00 o`clock pollings station are closed and start counting of votes, after are publisched the results.
Constituyente, A. (1991). Constitucion Política de Colombia, 216. http://doi.org/42867930
Procedimiento electoral | banrepcultural.org. (n.d.). Retrieved February 16, 2016, from http://www.banrepcultural.org/blaavirtual/ayudadetareas/politica/procedimiento_electoral
14. Sino – American Relationships
The Chinese government and the American government have been establishing dialogues that can reach an agreement to establishing a stable and sustainable economy in principle for both parties and is thereafter regulate trade and economy in the world.
It seems that the Chinese government has been taking on new ways of thinking about the relationship too. As Jane Perlez reported, Xi seems eager to explore "a new type of great power relationship." As expected, everyone in and out of Washington has offered his two cents on the subject.
Foreign Policy, (2013). Defining the Sino-American relationship. [online] Available at: http://foreignpolicy.com/2013/06/03/defining-the-sino-american-relationship/ [Accessed 14 Feb. 2016].
15. Russian – American Relationships
For more than 200 years, Russia and the United States have shared a multi-faceted diplomatic relationship, at one point even sharing a land border when Russia had a settlement at Fort Ross, California. Over this period, the two countries have competed for political and economic influence, and cooperated to meet mutual global challenges. In 2007, private and government organizations in the United States and Russia mark the bicentennial of diplomatic relations with events that illustrate the depth and history of the relationship.
With the beginning of the Munich Security Conference, Russia Direct talked to a member of the Russian delegation, Andrey Kortunov, general director of the Russian International Affairs Council (RIAC), to discuss this year’s conference agenda and the most serious security challenges for Russia and the West
State.gov, (2016). 200 Years of U.S.-Russia Relations. [online] Available at: http://www.state.gov/p/eur/ci/rs/200years/ [Accessed 14 Feb. 2016].
Russia Direct, (2016). U.S.-Russia relations. [online] Available at: http://www.russia-direct.org/tags/us-russia-relations [Accessed 14 Feb. 2016].
16. European – American Relationships
The European Commission provided 10 million euros for research essential Zika virus, in response to the increase in severe cases of congenital brain malformations
reported Latin America, and his alleged link to Zika virus infections. If the link is proven, this money could be used to combat this virus, for example, through the development of diagnostic tests and possible treatments or vaccines.
Together, the EU and the USA have the largest bilateral trade and investment relationship in the world, roughly 31% of the world trade and over 49% of the world GDP
Eeas.europa.eu, (2016). European Union (EU) - Delegación de la Unión Europea en Colombia. [online] Available at: http://eeas.europa.eu/delegations/colombia/index_es.htm [Accessed 14 Feb. 2016].
External Action, E. (2014). EU Relations with the United States of America. [online] European Union. Available at: http://eeas.europa.eu/us/index_en.htm [Accessed 14 Feb. 2016].
17. African-American relationships
The textile sector is emerging as one of the big winners of the macro business between the continent and the country.
They are about a thousand businessmen from more than 60 countries in the largest commercial meeting held by Proexport, which will take place in Corferias two thousand Colombian non-mining exporters of energy products.
South Africa and Colombia established full diplomatic relations on 12 April 1994. Colombia opened an Embassy in Pretoria in April 1995 and the first Colombian Ambassador to South Africa took up his post in Pretoria in July 1995.
Dirco.gov.za, (2015). Columbia (Republic of). [online] Available at: http://www.dirco.gov.za/foreign/bilateral/colombia.html [Accessed 14 Feb. 2016].
Dinero.com, (2014). Africanos quieren negocios con Colombia. [online] Available at: http://www.dinero.com/economia/articulo/colombia-africa-haran-negocios/191496 [Accessed 14 Feb. 2016].
18. Import-Export regulations
For import regulations:
1. Knowing the taxes
2. Register as an importer
3. Market study for the products you are gonna bring to the country
4. Identify the product and all related to their taxes
5. Process to the Ministerio of Industria, comercio y turismo
6. Other tramits
7. Nationalization process
For export regulations:
1. Location subheading
2. Registration as an exporter
3. Market research and location of the potential demand
4. Procedures clearances
5. Procedures for customs clearance before the DIAN.
6. Payment.
7. Procedures exchange (forex refund).
Mincomercio Industria y Turismo, (2015). Bienes. [online] Available at: http://www.mincit.gov.co/publicaciones.php?id=33972 [Accessed 14 Feb. 2016].
Mincit.gov.co, (2015). English Version. [online] Available at: http://www.mincit.gov.co/englishmin/index.php [Accessed 14 Feb. 2016].
19. Government fiscal and monetary policy changes
The sharp drop in oil prices poses significant challenges to Colombia’s near-term outlook, but strong economic policies are expected to moderate the growth slowdown in 2015, said the IMF in its annual assessment of the Colombian economy.
A subdued outlook for investment, especially oil-related, and private consumption and a tightening of planned public spending will cause growth to slow to 3.4 percent in 2015, which would still compare favorably with most other countries in the region.
However, the medium-term outlook is favorable, with growth projected to bounce back gradually to around 4¼ percent by 2018, the report said.
“Colombia is now undergoing an adjustment to lower oil prices,” said Valerie Cerra, the IMF’s mission chief for Colombia. “But the authorities have built significant policy buffers, which will help moderate the impact of the oil shock on the economy.”
“In addition, the authorities’ efforts to implement key economic and structural reforms will help maintain growth momentum over the coming years,” added Cerra.
Imf.org, (2016). IMF Survey : Drop in Oil Prices Poses Challenges for Colombia. [online] Available at: http://www.imf.org/external/pubs/ft/survey/so/2015/car060815a.htm [Accessed 14 Feb. 2016].
Perez, D. and Osorio, D. (2016). The Fiscal and Monetary History of Colombia. [online] uchicago. Available at: https://bfi.uchicago.edu/sites/default/files/research/Colombia_0.pdf [Accessed 15 Feb. 2016].