Actividad de aprendizaje 11 Fase de ejecución

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

disadvantages”

Presentado por:

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SERVICIO NACIONAL DE APRENDIZAJE SENA

NEGOCIACIÓN INTERNACIONAL
In the last decade, Colombia's foreign trade policy was based on the deepening
of trade relations with the Andean Community and the efforts to obtain unilateral
access to certain markets, especially the United States, through the ATPA
schemes. / ATPDEA, and that of the European Union, through the GSP
scheme.

Due to the increasing gap between exports and imports, being the second
largest in Colombia, it is evident the need to promote important changes in
trade policy, such as finding new markets and for this it is important to move
forward without delay to the subscription of free trade agreements such as the
one decided to negotiate with the United States. After the last extension of the
ATPDEA in 2010 that ended on February 15, 2011, the FTA with the United
States is seen as a possibility for entrepreneurs to make long-term investments.
term, that increase their productive capacity and have a stability intime and
favorable conditions for exports.

The Colombia - US TLC is constituted by norms and procedures derived from

them, which are applicable in equal conditions for the two countries. The TLC is
not a Law, nor is it conformed by them; However, according to the Political
Constitution of our country, international agreements have all the rigor and have
to be complied with like any other current legislation.
The TLC is a kind of guide on how to export - import among the signatory
countries, with general recommendations and criteria that determine the
framework under which each country can act to obtain the greatest benefits. In
this sense, on the one hand, it is necessary for the two countries to issue
legislation on specific issues that take advantage of bilateral conditions; on the
other, each country is free to dictate its national economic policies and take the
measures it deems pertinent to boost international trade and especially to
protect and promote the export of its products
TLC went into effect on May 15, 2012, signed between Juan Manuel Santos
and Barack Obama at the Summit of the Americas without possessing a due
date but with the possibility of seeking reforms or termination by each of the
parties . This agreement is organized in a document of 23 chapters dedicated to
different topics

Scope of the Agreement

The FTA is an agreement that generates opportunities for all Colombians,

without exception, as it contributes to creating jobs and improving the
performance of the national economy. Initially it benefits the exporting sectors
because they will be able to sell their products and services, under very
favorable conditions, in the US market. But not only to exporters, also to all
other domestic producers.

The subjects that were negotiated were those considered as general, that is,
access to markets, in its two aspects (industrial and agricultural); intellectual
property; investment regime; State purchases; dispute resolution; competition;
electronic commerce; services; environmental and labor
The service sector is already the largest in the Colombian economy. High value-
added services are the great driver of the world's economies, foreign
investment is included because there is great interest in attracting it. Intellectual
property was also negotiated, a highly sensitive issue; and State purchases, a
very important element to boost trade.

Content of the Agreement

The text of the agreement was reflected in a preamble and 23 chapters. The
chapters usually include aspects of the agreed general disciplines, many of
them common in both multilateral and bilateral negotiations, and incorporate
particular elements obtained by both Colombia and the United States in the
negotiation.

FTA Organization Colombia - United States

Preamble
Chapter 1 Initial Provisions and Initial Definitions
Chapter 2 National Treatment and Access of Goods to the Market
Chapter 3 Textiles and Clothing
Chapter 4 Rules of Origin and Origin Procedures
Chapter 5 Customs Procedure and Trade Facilitation
Chapter 6 Sanitary and Phytosanitary Measures
Chapter 7 Technical Barriers to Trade
Chapter 8 Commercial Defense
Chapter 9 Public Contracting
Chapter 10 Investment
Chapter 11 Cross-border Trade in Services
Chapter 12 Financial Services
Chapter 13 Competition Policy
Chapter 14 Telecommunications
Chapter 15 Electronic Commerce
Chapter 16 Intellectual Property Rights
Chapter 17 Labor Issues
Chapter 18 Environment
Chapter 19 Transparency
Chapter 20 Administration of the Agreement and Strengthening of Commercial
Capacities
Chapter 21 Dispute Resolution
Chapter 22 General Exceptions
Chapter 23 Final Provisions

These international trade agreements bring to Colombia, the advantage that

their employers can sell their products and services abroad under better
conditions, without paying taxes (tariffs) without being subject to other barriers,
which do have to pay in case of not having these treaties.
This helps the national economy of a country to grow as it has a much wider
consumer market than when it is limited to its entrepreneurs to sell in the
domestic market.
Therefore, free trade is considered positive, because the lack of trade barriers
makes exporting easy and relatively cheap. In this way, a country can focus its
resources more efficiently and achieve a higher real income. Despite the global
benefits of free trade for a country's economy, there may be some important
drawbacks to the establishment of free trade agreements.
Colombia is not a threat to the US in political and economic matters, since the
total production of the country is only of their production. Colombia we are small
in the impact that it can generate in the North American production therefore the
economists consider that the TLC will be generous.

Taking into account the following aspects within the treaty

 Access to markets
 farming
 Industry
 Services
 Public Purchases
 Other issues of access to markets
 Cross-cutting issues
 Intellectual property
 Investment
 Competition policy
 Laboral things
 Environmental matters