Conditions of access to the international market

Below, you will find the main aspects with reference to the conditions of access to international markets for companies with an international vision

You as an exporter and importer must take the following into account:
When an entrepreneur thinks of internationalize, he must bear in mind that it is a job that demands effort, resources and especially time. While it is true that technological advances have made the world's information available to us, that trade agreements have brought economies closer together and that the trend towards trade facilitation is opening unexpected doors, it must also be recognized that it is necessary to rethink our position on the opportunities our products have in other markets, since the global context requires us to be more prepared to avoid making mistakes that could negatively impact business finances due to ignorance or misinformation about the markets.

With this precedent, we can mention that entrepreneurs normally observe “everyone” as market potential and it must be recognized that this statement is NOT a reality, due to the knowledge requirement that is required to determine the conditions of access to new markets within which the analysis of standards, regulations, tariff and non-tariff barriers, trade defense measures, risks from different points of view (political, economic, commercial, etc.) are contemplated.

It is worth mentioning that selling in an international market sporadically is an opportunity and many people succeed, but generating a long-term business requires a strategy and this is where few achieve success, since the continuous flow of goods requires defining an objective, propose a scope, allocate some resources, preparation, and knowledge in different aspects.

Identify opportunities and establish the possibility of entry of the product to international markets

The first step to internationalize an organization and its product portfolio is to establish the possibility that products must adapt, improve, or innovate to meet the needs of consumers, being essential that the administration make decisions and generate policies in this regard, to determine how far they are willing to go in their productive, financial and commercial processes to serve a new market.

Subsequently, a detailed study of multiple regulatory factors is required, which we will try to develop below, starting from the scoop that in principle, all markets can be potential buyers, however, according to the conditions established by each of them and the needs of your consumers, some will offer better opportunities than others.

These opportunities are determined by the demands imposed by countries on products from abroad and by the ability of companies to respond to these demands.

Market access conditions
At that moment when the entrepreneur makes the decision to internationalize his company and plans to export his product, he must identify the conditions that the selected market has established

The conditions, in the case of products, are regulated through measures such as:

• Tariffs

• Customs taxes

• Non-tariff restrictions such as:

• Sanitary and phytosanitary standards

•    Quality standards

• Environmental standards

• Labeling standards

• Packaging standards

• Previous inspections

• Technical requirements

Environmental regulations.

Subsidies, quotas, trade defense measures such as compensations or anti-dumping measures, among others, also affect.
In the case of services, these conditions are given by the rules or regulations that hinder their trade, such as:
• The requirement of commercial presence

• Economic necessity tests

• Validation and homologation of qualifications

• Association with national companies

• Employment requirements to a percentage of local professional, technical and/or operational personnel

• Exchange restrictions

• Taxes on remittances

• Subsidies

The General Agreement on Tariffs and Trade GATT and the General Agreement on Trade in Services GATS, administered by the World Trade Organization, contain the respective regulations to ensure access to markets of goods and services in an increasing and predictable manner, under the principles of non-discrimination and transparency, being applicable to Colombia as it is a member of the WTO.

To conclude
Access conditions are one of the greatest challenges that a company interested in entering new markets with its products must face, but it is especially a requirement to be competitive and generate value proposals that contribute to differentiation.

Depending on the type of good, the exporter must comply with the provisions that the importing market has established in relation to its product, remembering that the fact of not being informed will generate difficulties for the company that may cause the impossibility of entering the destination market, loss of clients, sanctions, fines and even lawsuits for non-compliance, so it is intended that you can have all the information to meet your objectives.
 

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