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Date: 2016-08-12

A Not So Easy Rider

When historians of Colombia's economic and business turnaround tell their stories, one that should be among them is that of Andres Camargo.

Born in the capital of Bogotà, he attended university in the U.S. and while there saw an opportunity to bring a snack product made by a brewing company back to his homeland.

It wasn't easy.   The government at that time in the late 1980s was not very open to imports from the U.S. or anywhere else. But he persevered, walking the rounds of government offices to procure the necessary health and other certificados.  The venture was a success, but the government changed a few years later and suddenly there was a ban on imported goods.  "The government thought they were doing the country a favor by engaging in import substitution," Camargo recalled. He said the policy didn't work because needed goods could not be procured.  The economy suffered.

Camargo had been fond of motorcycles since he was 8-years-old and admits to riding one not long after.  In the early 1990s, he approached Harley-Davidson about opening a dealership in Bogotà.  Harley whose domestic sales were from suffering Japanese competition saw in Camargo a chance to further expand its export markets.

The store opened to much fanfare and promise but things rapidly went wrong. Harley bikes proved wildly popular but not ones sold by the dealerships.  Drug thugs developed a new business line, using their then vast criminal network to steal bikes in the U.S. and smuggle them into Colombia.  Why buy from a dealer when you can get one free or at substantially below market value?

Bombs over Bogotà

Not only was his investment threatened, what was happening was an example if everything wrong with the country and why legitimate business would never have a chance.  He could have easily given up. Many others did. Instead, he took on the gangs and narcos at the height of their power and influence.

With help from the U.S. and Colombian governments, bikes were confiscated from owners who could not prove legal ownership.  Soon the illicit spare parts sellers had no customers.  In the U.S., authorities got better at interdicting stolen bikes at the border.

The thugs were furious and tried to strike back.  Threats against Camargo were a regular occurrence.  He acquired bodyguards and traveled in bulletproof vehicles.  Still, he feared for the safety of his family, including a young daughter, and himself.

One day a bomb was left in front of his showroom in Bogota's Zona Rosa district.  The national police arrived in time to disarm the device, which was powerful enough to do major damage to the entire city block.

Camargo persevered but the trials weren't over.  The economy went into a major tailspin and demand for bikes, which cost 30 percent more than in the U.S. because of steep taxes and fees, collapsed.   He sold one bike during an entire year.  Were it not for support from Harley-Davidson, the dealership would have gone belly up.  Grateful, Camargo named his dog Harley-Davidson.  A bit long in the tooth now, he still enthusiastically greets showroom visitors, who come to admire dozens of glistening “hogs” and other models.

An FTA to the Rescue

Things slowly improved, and then after years of negotiations the U.S.-Colombia Free Trade Agreement went into effect.  Camargo joined officials at the U.S. embassy and corporate folks at Harley-Davidson in lobbying the Colombian government to approve the pact, not just on behalf of his company but also for companies in both countries.

The agreement eliminated all duties on bikes with larger engines, and bikes with smaller engines will hit zero over a period of years.  Thanks in large measure to the FTA, victory over the cartels, and an improving economy, Camargo is selling close to 300 bikes a year.  A new Harley dealership under a different owner is set to open later this year in another part of the country, generating more sales for Harley-Davidson and creating more jobs in the U.S.

Despite many near death experiences, Carmargo is bullish on the future of Colombia. One problem is the lack of good quality roads in the country.  He said, “We'd sell more bikes if there were more places to ride them.”  Government officials know that more of everything will be bought and sold when the long neglected infrastructure gets the massive investment that's planned.

So when you consider doing business in the new Colombia, as you certainly should, remember his story, the sacrifices he and others made, the heroic courage.  Thanks to these brave people, you’ll receive a warm welcome and abundant opportunities.


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