EVIDENCIA 3: ENSAYO “FREE TRADE AGREEMENT (FTA):

ADVANTAGES AND DISADVANTAGES”

APRENDIZ: LUIS FERNANDO CASTILLO BERONA

INSTRUCTORA: KAROL VANESSA FLOREZ TORRES

AREA: TECNOLOGO EN NEGOCIACION INTERNACIONAL

FASE EJECUCION

FICHA # 2374760

SERVICIO NACIONAL DE APRENDIZAJE SENA

MEDELLIN

DICIEMBRE DE 2022

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 CONTENIDO

Introduccion.............................................................................................................3
Investigue sobre los tratados de libre comercio que Colombia tiene vigentes
con los Estados Unidos..........................................................................................4
Escriba las ventajas y desventajas de estos tratados para Colombia..............5
Conclusion...............................................................................................................7

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 Introduction

Free trade agreements or FTAs are trade agreements signed by two or more
countries to implement and agree on immunities in tariff preferences and
reductions in non-tariff barriers in the exchange of goods and services.

As this essay develops, we will analyze important aspects such as the advantages
and disadvantages that the free trade agreement between Colombia and the
United States brought.

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Investigue sobre los tratados de libre comercio que Colombia tiene vigentes
con los Estados Unidos.

What is the trade agreement that Colombia currently has with the United States?
Currently, the agreement that Colombia has with the United States is the United
States - Colombia Trade Promotion Agreement or TPA (Colombia trade Promotion
Agreement), is a free trade agreement approved on October 12, 2011 by the
United States Congress and in force since May 15, 2012.

This treaty allowed the elimination of more than 80 percent of the tariffs on US
exports of industrial and consumer products in Colombia, with time the rest of the
export tariffs were eliminated.

Why is Colombia chosen to make this FTA?

Colombia was already a strong commercial partner of the United States, in addition
this agreement consolidated relations and favored American manufacturers,
workers and farmers, in addition Colombia had a growing market and these would
contribute to the objectives of the United States.

In just 10 months, exports to Colombia amounted to USD $ 14,500 million, an

increase of 19% compared to the same period of the previous year, United States
imports from Colombia totaled USD $ 19.2 billion, an increase of 5% with
Compared to the same period of the previous year, Colombia currently occupies
the fourth most important destination for exports from the United States.

This agreement shows the good relationship between the United States and
Colombia. Our two nations are working together to move forward seeking common
goals of expansion and economic opportunity and prosperity, ensuring the safety of
our citizens, developing clean sources of energy and protecting the environment,
and promoting democracy and human rights.

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 Escriba las ventajas y desventajas de estos tratados para Colombia.

What advantages does the FTA bring for Colombia?

This treaty allows wholesale importers to offer the usual products at a lower price
since they are saving tariffs and direct shipping costs through NAFTA.

It benefits Colombian and American consumers, because it guarantees them a

greater range of products at better prices.

It also benefits entrepreneurs and exporters from both countries, because, on the
one hand, they will be able to sell more products without paying the entry taxes
that were previously required, and on the other, they will be able to buy machinery
not produced in the country and / or materials. premiums without paying a fee,
which will allow them to be more competitive.

Likewise, the coffers of the two nations will also benefit from the growth of their
economies.

One of the opportunities with the FTA is that Colombia took advantage of natural
biodiversity, training the agro-business so that its productive and innovative
process and with a technical improvement, in this way the producers were able to
optimize the quality of life and their families, generating more income. high as a
result of exports.

Another positive impact of the treaty is the significant increase in the US franchises
that came to Colombia due to the effect of foreign investment in the country, this
allowed the decrease in the unemployment rate and an economic and social
improvement for the quality of life of the citizen.

Among the sectors benefited by the FTA are: agriculture (flowers, sugar, dairy
products, tobacco) these products guarantee stable access to the United States,
the demand of North Americans helped increase employment in Colombia; mainly
in the production of tobacco, because 250 people are required per ton produced.

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What are the disadvantages of the FTA for Colombia?

The small companies in the country have faced situations that they had not
contemplated, such as: the amount of procedures they must carry out in order to
export, the lack of support from the government in terms of training and guidance
to achieve the issuance of the quality certificates of the product and be able to
compete internationally.

The productive sectors that benefited little from the negotiation of the Treaty have
been unprotected

The mismatch in tax revenue, since by eliminating entry tariffs for foreign products,
the national fiscal deficit could be deepened, although in return it was expected
that this money would be recovered by VAT, derived from the greater movement of
the economy

Another disadvantage has been the lack of adaptation capacity of national

companies in the face of international production standards, generating
concentration and capture of the market by foreign companies.

By bringing many benefits this agreement to the country, Colombia has opened
significant opportunities to the United States, so that many products circulate freely
in the country, which affects that products and services that are produced in the
country arrive exported at a lower cost .

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 Conclusion

The FTA offers many commercial benefits of great importance to Colombia,

however, it is necessary to develop a social, cultural and political environment that
is more attractive to foreign investors; Colombia must invest more in education and
health for citizens, as this contributes to knowing how to choose loyal and honest
leaders to lead the country.

The free trade agreement signed with the United States could generate greater
unemployment, poverty and worsen the quality of life for the majority of
Colombians, since it may be possible for North American transnational companies
to take over the country's economy and take it out of the market. the few remaining
national companies.

There are large technological differences between the two countries, so that during
the first year of the treaty's presence the trade balance had unfavorable results for
Colombia, it is necessary to improve road infrastructure, improve export logistics
and increase genetic research for the agricultural sector .