EVIDENCIA 3: ENSAYO ?

FREE TRADE AGREEMENT (FTA): ADVANTAGES AND

DISADVANTAGES?

LUZ MARIBELIS CARRANZA CALEÑO

NEGOCIACIÓN INTERNACIONAL

SENA

2021

FICHA

2175996
 INTRODUCCIÓN

THE TREATY CONTAINS VARIOUS INSTITUTIONAL ASPECTS AIMED AT ENSURING THAT THE
PROCESS OF IMPLEMENTATION, DEVELOPMENT AND FUTURE MODIFICATIONS GO
SMOOTHLY. FOR ALL TREATY ADMINISTRATION TASKS, THE FREE TRADE COMMISSION
WAS ESTABLISHED, MADE UP OF THE MINISTER OF COMMERCE, INDUSTRY AND
TOURISM, REPRESENTING COLOMBIA, AND THE UNITED STATES TRADE REPRESENTATIVE
(USTR), REPRESENTING THE UNITED STATES. IT CORRESPONDS TO THE COMMISSION,
AMONG OTHER RESPONSIBILITIES, TO SUPERVISE THE PROCESS OF IMPLEMENTATION OF
THE TREATY, SUPERVISE ITS DEVELOPMENT, SEEK THE SOLUTION TO THE CONTROVERSIES
THAT ARISE AND SUPERVISE THE WORK OF ALL THE COMMITTEES, COUNCILS AND
WORKING GROUPS CREATED IN THE TREATY.

THESE ASPECTS INCLUDE THE POLITICAL DECLARATIONS AND MECHANISMS OF

ADMINISTRATION OF THE TREATY, PROVISIONS TO PROMOTE TRANSPARENCY,
MECHANISMS TO COLLECT OBSERVATIONS AND MECHANISMS TO SOLVE
CONTROVERSIES.
On May 15, 2012. The presidents of Colombia, Juan Manuel Santos, and of the United
States, Barack Obama, established during the last Summit of the Americas, in Cartagena,
where the corresponding exchange of notes between the two governments.

The negotiation seeks to permanently open the United States market for our products, in
order to generate employment from investment and generate resources to eradicate
poverty.

To help the products that suffer, that have fears, secure income programs are established
”. Consumers will benefit, because there has to be a reduction in prices in essential
products and above all, the trend of inflation growth has to settle. The price of agricultural
inputs improves, because we are going to take care that by deducting them, the chain of
distributors does not remove the tariff; we are going to work so that with that the
producer is favored

We need to take advantage of our energy and business potential, Colombians have great
qualities. The free trade agreement opens up opportunities for a better future for all.

He reiterated that Colombia is today a country more open to the world, with a productive
sector that has matured and has better conditions to attract investment and conquer
foreign markets. Due to the growing gap between exports and imports, being the second
largest in Colombia, it is evident. the need to promote important changes in intrade
policy, such as the search for new markets and for this it is important to advance without
delay towards signing free trade agreements such as the one that was 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, which increase their productive
capacity and have stability over time and favorable conditions for exports.

Both economies are complementary. Colombian citizens will benefit because our exports
will increase; there will be more investment for infrastructure, for industry, for rural
development, in short, more opportunities.

General benefits

The FTA opens for Colombia the largest market in the world in goods andservices, with
more than 300 million inhabitants.The treaty creates a stable long-term framework,
promoting national andforeign investment in Colombia. Likewise, it is a permanent
instrument that,unlike the Atpdea (for its acronym in English), does not require
periodicrenewals and, therefore, provides stability and predictability in the rules ofthe
game for trade in goods and services between the two countries.This means that
Colombian companies will be able to develop long-termbusiness plans and make the
necessary investments to take advantage ofopportunities in the US market.Multiple
studies show the positive impact of the agreement on economicgrowth, increased exports
and the generation of quality jobs. According tothe Government of Colombia, GDP will
grow between 0.5 and 1 additionalpercentage point each year. Likewise, the
unemployment rate will be reduced by one percentage point and 500 thousand
additional jobs will be created within the next 5 years.The sectors with the highest
growth potential include clothing, textiles, leather products, metal products,
vegetable oils, fruits, vegetables and services. There are also significant
opportunities for beauty and agro-industrial products. With the FTA, Colombian
families will be able to enjoy a wider variety of product options at more competitive
prices, increasing their purchasingpower.

The United States is the main destination for Colombian exports, with 38 percentage share
in 2011. The FTA guarantees total and permanent tax relief on all Colombian merchandise
exported to that country. The FTA guarantees greater access to the Colombian productive
apparatus to the acquisition of capital goods, mainly machinery and equipment imported
from the United States, immediately eliminating the vast majority of tariffs (between 5
and 20 percent). The effect will be an increase in competitiveness for the entire national
productive apparatus, both industrial and agricultural, and a special benefit for small and
medium-sized enterprises.

ADVANTAGE

The advantages of signing this agreement are that for Colombian companies there is the
possibility of exporting their products to the north of the American continent, thus
benefiting mainly the agricultural sector, the industrial sector, services and SMEs; On the
other hand, have the rate

ACCESS TO WIDER MARKETS: ESSENTIAL FOR SMALL BUSINESSES.

THE ENTIRE TARIFF UNIVERSE

IS BINDING BECAUSE IT WILL REDUCE THE INSERT

IMPLIES LOWER COST OF GOODS AND CA IMPORTS

DISADVANTAGES

Among the disadvantages, it can also be considered that many products enter the
country, trying to replace the one already manufactured, thus generating losses and fiscal
disturbances by not charging these taxes on imports, small companies will not have the
ability to compete internationally, causing its stagnation and limiting itself to the
manufacture of products only for the few local clients that may remain, the productive
sector will also be harmed by not receiving the expected support both for the cultivation
and for the collection of its products, thus achieving economic losses by not buy on your
farm. The first sector will be affected, since the Colombian countryside is not fully
industrialized to be able to compete with agricultural products from the United States, nor
does it have sufficient production and quality mechanisms. Colombian peasants do not
have sufficient educational capacity to respond to the demands that will be made of them.
We are also at a complete disadvantage with the US countryside, since it has totally
protectionist policies in its favor in its different economic sectors, these generate lower
costs for its production.
 BIBLIOGRAFIA

https://www.tlc.gov.co/preguntas-frecuentes/abc-del-tratado-de-libre-comercio-entre-
colombia-y

https://www.tlc.gov.co/acuerdos/vigente/acuerdo-de-promocion-comercial-estados-
unidos

https://www.tlc.gov.co/getattachment/acuerdos/vigente/acuerdo-de-promocion-
comercial-estados-unidos/1-antecedentes/tratado-de-libre-comercio-colombia-estado-
unidos-r/tratado-de-libre-comercio-colombia-estado-unidos-resumen.pdf.aspx