FARC ceasefire makes Colombia’s resources attractive for Canadian firms, but challenges remain – by Peter Koven (Financial Post – June 24, 2016)


The Colombian government has reached a landmark ceasefire agreement with the country’s largest rebel group, a move that could make its resource sector more attractive for companies in Canada and elsewhere.

The historic signing of the agreement between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC) took place in Havana, Cuba on Thursday. If the peace is maintained, this deal will end a bloody conflict that has lasted more than five decades, caused more than 200,000 deaths and displaced millions.

President Juan Manuel Santos and FARC leader Timoleon “Timochenko” Jimenez signed the accord, with UN Secretary-General Ban Ki-moon looking on.“Let this be the last day of the war,” Timochenko said, according to reports.

This ceasefire is expected to provide a boost to the economy by improving public safety and broader economic stability. Experts said it should immediately make Colombia more attractive for foreign investment, and Santos previously stated that a peace agreement with the FARC could boost annual gross domestic product by 1.5 per cent. The Colombian Peso rallied this week on the settlement.

“If both sides are really honest about making this work, it’s going to be an incredible thing for the country because it will create stability and foster growth,” said Anna Stylianides, executive chairman of Eco Oro Minerals Corp., which has a gold project in Colombia.

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