Actividad de aprendizaje 11

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

Free Trade Agreement Between Colombia And the United States

Fulfilled 5 years of the Free Trade Agreement between Colombia and the United States, the
potential of the agreement has not been fulfilled. This agreement took a step forward and two
back, this is due to the main export of Colombia, oil, had a fall in its price in 2012 which caused a
cut in profits during the first years and a reduction in the spending on American products. In
general, in this agreement, the United States has regained its participation in the Colombian
market, and Colombia has diversified its exports, improving investor confidence.

https://www.as-coa.org/articles/update-us-colombia-free-trade-agreement-turns-five

In this article is spoken in a timely manner about the advantages and disadvantages of the FTA
between Colombia and the United States, this report shows that it does not benefit one more than
another, but it does contribute in equal amount significant disadvantages for both countries. For
Colombia, allowing the agreement supposed granting questionings to its health, safety and
environmental protection laws. This gives fundamentals of that if well the FTAs although it costs
the jobs of majorities, increase the gain to a retail elite.

http://natisita.blogspot.com/2012/01/united-states-free-trade-agreement-with.html

An article by the Office of the United States that promotes the FTA between Colombia and the
United States through a data sheet, which lists several export barriers that will be eliminated so
that American products can freely enter the Colombian market. The gradual and complete
elimination of taxes on US products in the next 10 years is one of the strongest points of the
agreement.

https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/2012/april/benefits-us-colombia-
trade-promotion-agreement-more-ame
 Free Trade Agreement between Colombia and the United States
1. https://www.elespectador.com/economia/tlc-con-ee-uu-un-balance-agridulce-articulo-
693784
2. https://es.panampost.com/felipe-fernandez/2018/05/16/6-anos-del-tlc-ee-uu-
colombia/
Advantage
The reduction in mining-energy export.
The total number of companies that export
from Colombia to the EEUU is 3,782, and
there are 1,895 products, with a growth of
13%.
It allowed Colombia to diversify its
exportable offer.
70% of imports from the EEUU are products
that are not produced in Colombia, being a
complementary process to our industry.
The United States is the main foreign
investor in Colombia.
Colombia enters 356 products into the US
market. With new investment projects,
which generated 22, 518 an Colombia.
The agreement provides access to 10,500
tariff items. Thus, about 462 new Colombia
products have been marketed there.
Nombre:
Disadvantages
Domestic exports to the EEUU fell 54% from
2012 to 2016, with a loss of $ 22billion. In
addition, 51,000 jobs in the agricultural sector
and 106,000 in the manufacturing industry have
been lost.
Exports of non-traditional goods (chemical,
metallurgical and agricultural) have performed
poorly during this period.
The FTA prevents the rules of the game from
being changed unilaterally.
The participation of the EEUU in Colombia
exports has decreased. The value of new
products is only 0.07%.
The workers centrals, the CUT and the CTC
demand from the government a revision to the
FTA, they argue that it impedes productive
development, violates national sovereignty and
restricts citizens’ rights and the protection of the
country’s natural heritage.
Ingrid Martin Bermudez
Programa: Negociación Internacional (1565303)