ACTIVIDAD DE APRENDIZAJE 11 Evidence 3: Ensino “Free Trade Agreement (FTA): advantages and disadvantages”” APRENDIZ JULIAN ANDRES MURILLO MORENO 2176032 PROGRAMA NEGOCIACION INTERNACIONAL SENA CENTRO AGROPECUARIO REGIONAL CAUCA 2020-2022 Actividad de aprendizaje 10 Contenido Introduction.............................................................................................................. 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 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. 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. 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. 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 . 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 .
