Evidencia 3: Ensayo “Free Trade Agreement (FTA): advantages and disadvantages”

File. 1565327
Angela Maria Lopez Gonzalez
International Negotiation Technology
Materials and Testing Center
Servicio Nacional de Aprendizaje Sena, Virtual Mode

Lina Stefania Mancera Céspedes

June 2019
Let's begin by explaining when the free trade agreement between Colombia and the United

States was signed, this process took place in November 2006, in Washington and

Colombia, the agreement was approved in the Congress of the Republic in June 2007 and a

month later the President Of the Republic sanctioned law 1143 that gave him life. In July

2008 the Constitutional Court found it adjusted to the constitutional order, as well as the

"modification Protocol" of the same agreement, signed in Washington In June 2009.

It entered into force on May 15th, 2012. This was established between the presidents of

Colombia, Juan Manuel Santos, and of the United States, Barack Obama, during the

Summit of the Americas, in Cartagena, where the corresponding exchange of letters

between the two governments was carried out

It should be stressed that the free trade agreement with the United States today appears as

the best and most viable option that our country has in the context of international

integration.
The U.S. FTA is important to Colombia, because it allows Colombian entrepreneurs to

place their products in permanent privileged conditions in the world's largest market

because the U.S. has about 314 million consumers

In addition, this country is Colombia's main trading partner and the increase in bilateral

trade will generate more employment and higher incomes and Colombian products have

permanent and barrier-free access to markets in industrialized countries

We should not forget that countries similar to ours, such as Chile, Mexico, Peru and Central

Americans, have already signed treaties with the United States and we cannot stay behind

There are a total of 59 products of 350 that conquered the North American market and have

been able to take advantage of the FTA

The Ministry of Commerce says that in the first five years of the FTA with the United

States has been positive because 8,700 different companies exported their products to that

country. In addition, something very important of this agreement is that before its start up
there were only 5,670 products with tariff items and today there are more than 10.63,

generating with this stability and confidence because the tariff benefits no longer depend on

the decisions of Congress.

A specific benefit of NAFTA is that entrepreneurs can negotiate with a longer term, which

allows them to plan and better distribute resources, although it must be clear that the trade

balance with the United States has gone from positive to negative, due to the fall of the

World trade. American trade has many opportunities for the commercialization of

cosmetics, clothing, girdles and underwear

ADVANTAGE
 Commercial opening generates a greater integration of the country to the global

economy, which will make it possible to reduce the volatility of its growth, the level of

risk-country and the financial cost of private activity in general.

 Not all the economic sectors benefit in the same way with the treaties of free trade.

there are no doubt sensitivity products that are protected with certain commercial

defense mechanisms.

 In the peruvian case, the only beneficiaries are the agro exporters of the coast, the great

entrepreneurs importers / exporters of trade and agriculture

 Gives us a new market with power of acquisition greater than our.

 Loss of economic development opportunity for the sale of products at market prices,

before the expanded exploitation of our natural resources.

 Access to broader markets: fundamental for small enterprises.

 Access to products of higher quality and lower price.

 Contact with technological and scientific advances.

 Best salaries and quality of employment us opens the doors to the largest market in the

world.

 Consolidate preferences of the atpdea and encompass all the arancelary universe.

 Implies less cost of imports of assets and capital.

DISADVANTAGE

 Imbalance of the domestic economy and lack of protection of productive sectors little

benefit from the negotiation of the Treaty.

 Mismatch in the area of tax revenue, since eliminating import tariffs for foreign

products would stop receiving taxes for this concept, which could deepen the national

fiscal deficit; However, analysts expect that this money will be recovered as VAT and

Income Tax derived from the greater movement of the economy.

 Little capacity of adaptation of the national companies in front of the international

standards of production, generating monopolies and capture of the market by part of the

North American offer that enters the country.