The key changes awaiting Colombia under president-elect Petro

Gustavo Petro will become Colombia's first left-wing president in August after winning Sunday's runoff against populist rival Rodolfo Hernández.

BNamericas looks at six key themes of his agenda and analyzes their likely impact on the country's investment climate.

Tax reform

Among the biggest challenges facing Petro will be the need to finance his election promises without causing further damage to the country's already fragile fiscal position.

Petro's agenda envisages spending of 19.5tn pesos (US$5bn) on social programs, including free education and universal healthcare, and a pledge to lift millions out of poverty. Petro has promised to raise 50tn pesos from a new tax reform bill and says half of the proceeds will go toward reducing the fiscal deficit, which equated to 7.1% of GDP last year. 

Business environment

While Petro has made a career out of railing against the corporate world, he has been less antagonistic towards the private sector in this campaign than during his previous two attempts to reach Colombia's highest office (in 2014 and 2010). 

Such a stance has provided hope for investors that he could adopt a more pragmatic approach to his presidency than many imagined.

In April, Petro signed a document in a public notary affirming that he would not expropriate private property if he became president.

And last week, he reassured private investors that they would remain welcome in Colombia. "You can be certain that all private investment with social and environmental responsibility will be supported and guaranteed by my government. Freedom is essential to democracy," he wrote on Twitter. 

Energy transition

Petro's campaign manifesto included a pledge to abort new E&P licensing rounds while halting fracking pilots and offshore drilling – part of wider plans to wean the country off fossil fuels. Meanwhile, he has promised to accelerate the transition toward clean energy sources such as wind and solar power. 

Key to the renewable energy rollout will be La Guajira department, where Petro proposed closer cooperation with indigenous groups to find a consensus for major projects that bring mutual benefits to communities and investors. 

State-run oil company Ecopetrol, which accounts for more than 60% of Colombia's oil and gas production, is expected to play a pivotal role in the shift to low-carbon energy.

"[Ecopetrol] will ... guarantee the fuels the country requires for the next 15 years while making contributions to feedstocks and derivatives for petrochemicals," according to Petro's campaign website

US relationship

There are doubts about whether Colombia's traditionally close relationship with the US will continue under Petro. 

"I think the time has come to sit down with the US government and talk," he said in a speech on Sunday night. 

Petro has expressed a desire to renegotiate Colombia's trade deals with the US while seeking talks aimed at protecting the Amazon and ending the war on drugs.

Political observers have warned such a stance could carry a significant economic cost given that Colombia has been one of the biggest recipients of US foreign aid in recent decades. 

Petro has questioned the effectiveness of US-backed efforts to eradicate the coca crop – the main ingredient used for cocaine production – saying he will focus instead on land reform and policies that promote rural development. 

Venezuela 

Although he described Venezuela’s President Nicolás Maduro as "dictatorial", Petro wants to re-establish diplomatic relations. 

Maduro responded to news of Petro's victory by telling his social media followers that "new times are ahead for this brother country."

Petro, meanwhile, has called for "dialog in the Americas without exclusions," an apparent response to Washington's decision to exclude Venezuela, Cuba and Nicaragua from this month's Summit of the Americas in Los Angeles. 

Analysts say the move could weaken US efforts to isolate Maduro, whom the White House has accused of leading a corrupt and repressive left-wing regime. 

Peace deal

In his victory speech on Sunday, Petro said he would adopt "the politics of love", vowing to restore peace in a country that remains riddled with violence. 

To this end, he promised to fully implement the 2016 accord between the Revolutionary Armed Forces of Colombia (FARC) and the government that officially ended Latin America's longest armed conflict. 

Petro is set to prioritize rural reform that he says will offer new hope for ex-combatants and communities impacted by violence. 

“We will meet all of the commitments of the agreement without exception," he said.