SENA

SERVICIO NACIONAL DE APRENDIZAJE

EVIDENCIA 3

ENSAYO “FREE TRADE AGREEMENT (FTA): ADVANTAGES

AND DISADVANTAGES”

ESTUDIANTE

ERIK SEBASTIAN MORERA FRANCO

NEGOCIACION INTERNACIONAL

2019
The phenomenon of the opening of economies and the borders of
nations; to goods, services and capital, motivated by the increase in
interaction between different market forces, the enormous reduction
in transport and communication costs, and the dismantling of
artificial barriers to the flow of goods, services, capital, knowledge
and (to a lesser degree) people across borders, this process is
currently framed by numerous laws, which seek to generate policies
in accordance with the economic, social and organizational
development of the countries. " This description frames a series of
events that, over time, have become daily in the economic evolution
of nations, not in vain to be reading this document many of the
elements that surround the world have their origin in various nations
and have arrived at the hands of humanity through a series of
mechanisms that make it possible to enter the economic circuit.
With the economic opening, the implementation of the so-called
trade agreements between different nations begins and Colombia
decides to initiate a state policy aimed at finding commercial
partners that will allow it to generate competitive advantages over
other nations; At present there are 14 free trade agreements signed
between Colombia and numerous nations. In the present essay a
description of the Free Trade Agreement with the United States of
North America.

The FTA is a free trade agreement that signs two countries to

improve and regulate trade internally for the benefit of the
country,the main objective of the FTA is to achieve the exchange of
products and thus the merchants and large companies of each
country can trade the products or services interchangeably.

Colombia was the country that was most interested in starting more
in-depth trade relations with the United States, Peru and Ecuador
have also joined, which provides us with significantly more
opportunities in these neighboring countries, It is important to
highlight that in the FTA trade issues are negotiated, investment
protection and more issues in order to commercialize, issues that
include national security, sovereignty or territorial integrity are not
negotiated, It should also be noted that it is a very important
opportunity for micro and small businesses that can enter their
goods or services to the most important markets in the world.

Advantages:
1-) It allows the merchants of the two countries to market the
products without paying tariffs or taxes

2-) As the merchants of our country export products the inflation of

our internal economy may grow every day.

3-) The inflation of the economy will generate more employment for
the country.

4-) Improve income for citizens.

5) It will generate greater demand for those who supply the national
market, including rural people.

6) Improvement of basic health and education services for the

whole country.

7) Access to higher quality products and lower prices.

8) Contact with better tools and technological and scientific

advances.

9) Attract Foreign Investment

10) It generates improvements in agricultural productivity and

competitiveness.

Disadvantages:

1) Loss of opportunities for internal economic development.

2) Loss of quality in internal products

3) Loss of agricultural opportunities

4) The opening of the new market may generate the acquisition on
ours

5) Products that are more protected by trade defense mechanisms