International negotiation

Jhonatan Ortiz montaña

SENA

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

disadvantages”

Bogota D.C

2019
To be able to enter into the different advantages and disadvantages of the FTA in
Colombia and the United States, we must know what the FTA is.

It is an agreement between two or more countries in which they will be discussed

in several rounds of negotiation to open new doors in foreign offer.

This helps the national economy of a country to grow as it has a much wider
consumer market than when it is limited to its entrepreneurs to sell in the domestic
market.

Therefore, free trade is considered positive, because the lack of trade barriers
makes exporting easy and relatively cheap. In this way, a country can focus its
resources more efficiently and achieve a higher real income. Despite the global
benefits of free trade for a country's economy, there may be some important
drawbacks to the establishment of free trade agreements.

Colombia is not a threat to the US in political and economic matters, since the total
production of the country is only ¼ of their production.
Among the benefits sought are the following:
MARKET ACCESS seeks to remove tariff and non-tariff barriers for trade in goods
and services.
AGRICULTURE tariffs with initial levels and with great weight in the international
purchase, enter products such as dairy products, meat, vejetales and fruits.
INDUSTRY: tariff measures are improved for a trade facility in terms of textile and
services industry.

In terms of advantages, we can see that several internal products such as fruits
have been enhanced by 1000%, which gives a lot of room for improvement for the
Colombian market.

Similarly, the textile company in Colombia has benefited from this treaty with an
increase in clothing by 23% and in strips by more than 120%.
Another great aspect for the economy in Colombia is that the US investment in
Colombia leaves us 2,000 million a year which has been increasing to 2,400 million
per year
and we could not miss the tourism that has left us more than 600,000 visitors per
year 70% more than we had before.

in a negative way, we have imbalances between the subsidies that the Colombian
agricultural sector receives and those that farmers have in the United States and to
date, the protection mechanisms for Colombia are not defined

in the same way Some Colombian agricultural products do not have an added
value component that makes them attractive in the North American market, making
their demand not much

What has harmed Colombia the most is that some sectors of Colombian business
that produce manufacturing could be affected by products that are managed from
the United States, but manufactured in China.

There may be a greater distance between qualified and unskilled jobs that due to
the growing racism against Latin Americans by President Trump

The bio-energetic bonanza leaves us that these products are exported without
greater added value, which causes them to be processed in industrialized
countries condemning Colombia to be an exporter of basic products, and at the
same time generating little qualified employment.

Since we see the advantages and disadvantages of the FTA between Colombia
and the United States, let's see how this free trade agreement is composed:

FTA Organization Colombia - United States

Preamble
 Chapter 1 Initial Provisions and Initial Definitions
 Chapter 2 National Treatment and Access of Goods to the Market
 Chapter 3 Textiles and Clothing
  Chapter 4 Rules of Origin and Origin Procedures
 Chapter 5 Customs Procedure and Trade Facilitation
 Chapter 6 Sanitary and Phytosanitary Measures
 Chapter 7 Technical Barriers to Trade
 Chapter 8 Commercial Defense
 Chapter 9 Public Contracting
 Chapter 10 Investment
 Chapter 11 Cross-border Trade in Services
 Chapter 12 Financial Services
 Chapter 13 Competition Policy
 Chapter 14 Telecommunications
 Chapter 15 Electronic Commerce
 Chapter 16 Intellectual Property Rights
 Chapter 17 Labor Issues
 Chapter 18 Environment
 Chapter 19 Transparency
 Chapter 20 Administration of the Agreement and Strengthening of
Commercial Capacities
 Chapter 21 Dispute Resolution
 Chapter 22 General Exceptions
 Chapter 23 Final Provisions

As a conclusion, I can say that the free trade agreement has given us great
advantages but, in the same way, disadvantages, I consider that the way forward is
to improve the conditions of Colombians in the United States in terms of prices,
demand and labor

References:
https://www.dinero.com/economia/articulo/el-lio-con-el-etanol-importado-de-
estados-unidos/272200
https://www.americaeconomia.com/economia-mercados/finanzas/conozca-los-
aspectos-positivos-y-negativos-del-tlc-entre-colombia-y-eeuu
http://tlc-eeuu.procolombia.co/abc-del-tlc