Evidencia 3 Ensayo Free Trade Agreement (FTA) advantages and disadvantages PDF

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Evidencia 3: Ensayo “Free Trade Agreement (FTA): advantages and disadvantages” Es de suma importancia en este proceso de aprendizaje, conocer muy bien los tratados de libre de comercio que se tienen en un país, antes de iniciar cualquier operación de importación y/o exportación. Para desarrollar esta evidencia es importante que lea y analice previamente el material de formación denominado The sentence, además del siguiente material complementario: Englis h sentence structure and entity-relationship diagrams. Sentence structure Posterior a estas lecturas, elabore un ensayo en inglés de mínimo tres (3) páginas, que dé respuesta a lo siguiente: Investigue sobre los tratados de libre comercio que Colombia tiene vigentes con los Estados Unidos. Escriba las ventajas y desventajas de estos tratados para Colombia. Desarrolle esta evidencia con la herramienta de su preferencia y envíe el archivo al instructor a través de la plataforma virtual de aprendizaje.

Free Trade Agreement (FTA) between Colombia and the United States is the beginning of a "new era" in relations between the two countries. “It is one of the most important days in the history of relations between the United States and Colombia. We started a new era in the diplomatic and commercial alliance of both countries. With NAFTA, Colombia enters the big leagues, ”said Ambassador Silva. In the last decade, Colombia's foreign trade policy was based on the deepening of trade relations with the Andean Community and the efforts to obtain unilateral access to certain markets, especially the United States, through the ATPA schemes. / ATPDEA, and that of the European Union, through the GSP scheme. He reaffirmed 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 increasing gap between exports and imports, being the second largest in Colombia, it is evident the need to promote important changes in trade policy, such as finding new markets and for this it is important to move forward without delay to the subscription of free trade agreements such as the one 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, that increase their productive capacity and have a stability intime and favorable conditions for exports. The Colombia - US TLC is constituted by norms and procedures derived from them, which are applicable in equal conditions for the two countries. The TLC is not a Law, nor is it conformed by them; However, according to the Political Constitution of our country, international agreements have all the rigor and have to be complied with like any other current legislation. The TLC is a kind of guide on how to export - import among the signatory countries, with general recommendations and criteria that determine the framework under which each country can act to obtain the greatest benefits. In this sense, on the one hand, it is necessary for the two countries to issue legislation on specific issues that take advantage of bilateral conditions; on the other, each country is free to dictate its national economic policies and take the measures it deems pertinent to boost international trade and especially to protect and promote the export of its products.

TLC went into effect on May 15, 2012, signed between Juan Manuel Santos and Barack Obama at the Summit of the Americas without possessing a due date but with the possibility of seeking reforms or termination by each of the parties. This agreement is organized in a document of 23 chapters dedicated to different topics. "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 and services, with more than 300 million inhabitants. The treaty creates a stable long-term framework, promoting national and foreign investment in Colombia. Likewise, it is a permanent instrument that, unlike the Atpdea (for its acronym in English), does not require periodic renewals and, therefore, provides stability and predictability in the rules of the game for trade in goods and services between the two countries. This means that Colombian companies will be able to develop long-term business plans and make the necessary investments to take advantage of opportunities in the US market. Multiple studies show the positive impact of the agreement on economic growth, increased exports and the generation of quality jobs. According to the Government of Colombia, GDP will grow between 0.5 and 1 additional percentage 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 agroindustrial products. With the FTA, Colombian families will be able to enjoy a wider variety of product options at more competitive prices, increasing their purchasing power.

The United States is the main destination for Colombian exports, with a 38 percent share in 2011. The FTA guarantees total and permanent tax relief on all Colombian merchandise exported to that country. The FTA guarantees greater access for the Colombian productive apparatus to the acquisition of capital goods, mainly machinery and equipment imported from the United States, by 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 the agricultural sector mainly, the industrial sector, services and SMEs; On the other hand, having the tariff benefits will enter the country all kinds of merchandise at very low cost, thus harming the trade sector ACCESS TO WIDER MARKETS: FUNDAMENTAL FOR SMALL BUSINESSES. ACCESS TO PRODUCTS OF HIGHER QUALITY AND LOWER PRICE CONTACT WITH TECHNOLOGICAL AND SCIENTIFIC ADVANCES BETTER SALARIES AND QUALITY OF EMPLOYMENT IT OPENS US THE DOORS TO THE LARGEST MARKET IN THE WORLD CONSOLIDATES ATPDEA PREFERENCES AND COVERS THE WHOLE TARIFF UNIVERSE

IT IS BINDING BECAUSE IT WILL REDUCE INSERT IT INVOLVES LOWER COST OF GOODS AND CAPITAL IMPORTS DISADVANTAGES Among the disadvantages, it can also be considered that many products will enter the country, trying to replace the one already manufactured, thus generating loss and tax-type disturbances by not harboring those taxes for imports, small companies will not have the ability to compete internationally causing that are stagnant and limiting themselves 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 for both the cultivation and harvesting of their products, thus achieving economic losses due to the do not buy from your farm. The first sector will be affected, since the Colombian countryside is not fully industrialized to be able to compete against agricultural products from the United States, nor do they have sufficient production and quality mechanisms. Colombian peasants do not have enough 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, they generate lower costs for its products....