Essay about Colombia’s international commerce

Nowadays Colombia is characterized by be a country with a high international commerce,

but before the 80 decade it isn’t just like that, for those days Colombia was what in
economy is called a country closed to the international commerce this because the country
had a bad experience with the international commerce where his industry almost die, but
with the time and with more fairy terms in the international market Colombia has been
signing FTAs that helps to improve his economy. During this essay it’s going to be
explained what FTAs were signed by Colombia and how this affects the economy and
industry.

First, a FTA is an agreement between two or more countries where his principal objective is
create a free commerce zone for goods and services where the taxes are removed or
partially removed, for example United kingdom and Colombia signed a FTA where they
agree to remove taxes to coffee and clothes, now Colombia has the possibility to export
coffee with a lower price thanks to the FTA and the British people can drink our coffee
cheaper than some time before, work in the same way as if United Kingdom export to
Colombia manufactures.

Continuing with the idea, Colombia has many FTAs but here just the most relevant will be
explained starting with the FTAs between Colombia and United States this allow to the
Colombian businessman to put their products in the north American market that is one of
the largest on the world with preferential condition, this agreement benefits the American
and Colombian customers with a bigger permanent offer of different goods and lowers
prices

But Colombia also has “trade agreement” that is the first step to start the international
commerce between two or more countries, but it has more limits even so is a big step to
reach an FTA and after a complete economical union, that’s the final objective of the
international trade.
Colombia has signed a “trade agreement” with Panama with the objective of strengthen
their commercial relation considering that this country has one of the most dynamics
economies in the Latin American region and could be a big ally, the benefits are customs
barriers deduction, access a market with 50% higher purchasing power, clear rules for
investment, increase the tourism between the countries among others benefits.

These two are the most known but Colombia has some other FTAs and “trade agreement”
that moves the economy, but there are more: FTA between Colombia and Switzerland,
Trade agreement with Costa Rica, Partial scope agreement with Venezuela, FTA between
Canada and Colombia, Trade agreement with Europe Union, Pacific Alliance, Trade
agreement EFTA, Trade agreement with Israel. All these agreements contribute to the
Colombia’s commercial development.

To evaluate the importance of the agreements in the Colombian economy, the next graph
going to be explained.

As you can see the relation between trade and commercial agreements or FTAs are directly
proportional letting us see that when Colombia sign it the international commerce have a
continuous rise during a 5- or 6-years period, this information explain in a smaller measure
the behavior of the Colombian international commerce, where each cycle stay along the
time explained before, but that analysis is out of this essay.
Conclusively, this analysis shows how important the commercial trade is and how the
residents and the businessmen could take advantage of it with a less restrictive transit in the
country or with less entry barrier to the market also the countries that sign this kind of
agreement have a better performance in their economies dynamizing the GDP and
international commerce

References:
1. https://www.tlc.gov.co/temas-de-interes/informe-sobre-el-desarrollo-avance-y-
consolidacion/documentos/ley-1868-informe-2020.aspx#:~:text=A%20la%20fecha
%2C%20Colombia%20cuenta,Europea%20(2013)%20y%20Corea%2C
2. https://www.tlc.gov.co/acuerdos/abc-de-los-acuerdos
3. https://www.dian.gov.co