Mexico–Colombia: Strategic Partnership, Regional Integration

Mexico and Colombia share a longstanding and strategic trade relationship that has evolved significantly over the past three decades. As two of the largest and most dynamic economies in Latin America, both countries have leveraged shared values, institutional frameworks, and regional integration efforts to deepen economic cooperation. Their trade relationship is not only bilateral but also embedded in broader frameworks such as the Pacific Alliance, a regional bloc that includes Chile and Peru and promotes free trade and economic integration among its members.

At the core of the Mexico–Colombia trade relationship is the Mexico–Colombia Free Trade Agreement, originally signed in 1994 under the umbrella of the G3 agreement (Mexico, Colombia, and Venezuela). After Venezuela’s withdrawal in 2006, the agreement continued as a bilateral treaty, covering trade in goods and services, investment protection, and dispute resolution mechanisms. This agreement laid the groundwork for tariff elimination and regulatory harmonization, fostering a steady increase in trade flows.

Trade between the two countries is balanced and complementary, reflecting the structure of their economies. Mexico exports industrial and manufactured goods to Colombia, including vehicles, electronic equipment, pharmaceuticals, and plastics. In return, Colombia exports commodities and processed goods to Mexico, such as coal, coffee, crude oil, flowers, and textiles. This complementary exchange has allowed both countries to benefit from comparative advantages and to strengthen supply chains across sectors.

Similar Economies

Colombia is the fourth-largest economy in Latin America by gross domestic product and the third-largest in South America. In 2023, its top exports were predominantly commodity-based, including crude petroleum, coal briquettes, gold, coffee, and refined petroleum. Although Colombia has seen notable growth in modern industries such as electronics, shipbuilding, tourism, and construction since the early 2000s, its export portfolio remains highly concentrated in primary goods. As Latin America's second-largest producer of domestically made electronics and appliances, following Mexico, Colombia has demonstrated industrial potential, though further diversification remains a key policy priority.

The country has upheld macroeconomic stability through robust institutions, including an inflation-targeting regime, flexible exchange rates, and prudent fiscal rules. However, Colombia's economic performance has been constrained by stagnant productivity growth over the past two decades, limiting its convergence with advanced economies and perpetuating geographic and social inequalities. Key structural barriers include limited global trade integration, infrastructure deficits, and a need for a more equitable and investment-friendly tax system. 

Economic growth rebounded modestly in 2024 to 1.7%, after a weaker performance of 0.7% in 2023, driven by consumption and easing inflation. Poverty declined slightly to 31.3%, though regional disparities remain stark. Looking ahead, Colombia’s economy is projected to grow by 2.4% in 2025 and potentially reach a 2.9% growth rate by 2027. Realizing this outlook will depend on greater investment, policy clarity, and a gradual but fiscally responsible shift toward a diversified, climate-resilient economy.

Bilateral trade

In 2024, Mexico’s top exports to Colombia were monitors and projectors totaling US$310 million. These exports primarily originated from Mexico City (US$754 million), the State of Mexico (US$414 million), and Baja California (US$279 million). In April 2025 alone, Mexico continued to export monitors and projectors as the leading product, amounting to US$28.3 million. During the same month, the main sources of exports to Colombia were Mexico City (US$62.3 million), the State of Mexico (US$33.7 million), and Jalisco (US$19 million).

Mexico’s main imports from Colombia in 2024 were coal products, briquettes, ovoids, and similar solid fuels made from coal, reaching US$611 million. The leading destinations for these imports were Mexico City (US$1.44 billion), the State of Mexico (US$314 million), and Nuevo Leon (US$135 million).

Foreign direct investment (FDI) from Colombia to Mexico totaled US$88.9 million in 2024, composed of profit reinvestments (US$61.5 million), intercompany accounts (US$18.5 million), and new investments (US$8.86 million). From January 1999 to December 2024, cumulative FDI from Colombia reached US$2.35 billion, distributed among new investments (US$1.57 billion), profit reinvestments (US$443 million), and intercompany accounts (US$338 million).

In 2024, the states receiving the largest share of Colombian FDI were Mexico City (US$39.4 million), the State of Mexico (US$13.9 million), and Nuevo Leon (US$13.3 million). Historically, these three states have also attracted the highest levels of Colombian investment since 1999: Mexico City (US$1.4 billion), the State of Mexico (US$242 million), and Nuevo Leon (US$105 million).

In recent years, Mexico has become one of Colombia’s top trading partners in Latin America. Mexican foreign direct investment (FDI) in Colombia has also increased steadily, with major Mexican firms such as Bimbo, Cemex, Grupo Salinas, América Móvil, and Gruma establishing operations in Colombia across sectors such as telecommunications, food processing, construction materials, and finance. Conversely, Colombian companies like Grupo Éxito and Alpina have invested in Mexico, particularly in retail and consumer goods.

Regional Cooperation

Both countries are committed to strengthening institutional and regulatory cooperation through the Pacific Alliance, a platform that facilitates not only trade liberalization but also the mobility of capital and people. The Alliance has allowed for the accumulation of origin, simplified customs procedures, and greater coordination in areas such as innovation, education, and climate policy.

Despite this positive trajectory, there are challenges. Non-tariff barriers, bureaucratic obstacles, and asymmetric access to financing continue to affect trade flows, especially for SMEs. Moreover, shifting political dynamics, especially related to trade protectionism or domestic industrial policy, can introduce uncertainty into bilateral relations.

Nevertheless, the Mexico–Colombia trade relationship remains a strategic pillar of regional economic integration. As both countries navigate global shifts, such as nearshoring, energy transition, and the digital economy, there is significant room to deepen economic ties through innovation, infrastructure development, and joint ventures in strategic sectors. Enhanced cooperation in sectors like clean energy, fintech, and agribusiness could further position Mexico and Colombia as complementary partners within a more integrated and competitive Latin American market.

The recent high-level meeting between Foreign Ministers Juan Ramón de la Fuente and Laura Sarabia signals a renewed commitment to strategic collaboration across multiple fronts, from economic development and migration policy to environmental protection and regional integration. Their agreement to modernize the Memorandum of Understanding and convene the IV Meeting of the Strategic Relationship Council underscores a proactive agenda aimed at addressing contemporary challenges such as inequality, transnational crime, and climate change through joint action.

The expansion of Mexico’s social programs into Colombia, along with Colombia’s interest in replicating Mexican infrastructure strategies, demonstrates how bilateral ties are deepening not only through trade and investment but also through social and institutional exchange. Furthermore, both countries are aligning diplomatically within multilateral frameworks like CELAC and the Pacific Alliance, reinforcing their leadership in the region.