Uneasy peace
02/04/2008
Cross-border tensions between Ecuador and Colombia are affecting trade in the region, although the details affecting the leathergoods sector directly relate to trade between Colombia and another neighbour, Venezuela.
President Hugo Chávez has introduced measures to protect production in Venezuela that include the need for pre-clearance for any non-essential imports.
A list Venezuela issued last month made it clear that leathergoods, including leather footwear, would not be considered as essential. This has practically put a stop to the movement of leathergoods across the border from Colombia.
Trade in the sector had a good start to the calendar year, with a 10% growth in Colombian exports to its neighbour to the south. After Colombian forces crossed the border into Ecuador to kill rebel leader Raúl Reyes on March 1, tension among all three countries has escalated.
Since then, Colombian leather exports to Venezuela have dried up as pre-clearance documentation has become almost impossible to obtain.
The Venezuelan authorities are receiving the blame for a slow-down in leathergoods moving the other way too. They have stopped issuing certification of origin documents for Venezuelan produced goods and, without these, selling in the Colombian market is impossible.
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