Evidencia 3.docx

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

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SERVICIO NACIONAL DE APRENDIZAJE SENA Negociación internacional 1565325 2019

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

Before seeing the types of free trade agreements that countries like Colombia and the United States have agreed upon, we need to know a little more what these agreements mean and what they represent to a third world country like Colombia. The Free Trade Agreement between Colombia and the United States seeks to establish trade without barriers or tariffs between the two nations mentioned. The treaty is highly questioned. The treaty directly affects economic policy issues, institutional, labor, environmental, intellectual property, among others. The FTA is based on this belief in trade liberalization and the economic integration, at all levels, between peoples. It is considered that economic evidence would be irrefutable in terms of the benefits obtained product of internationalization. All countries that have economies open to foreign investment and a greater volume of international trade per capita (exports per capita + imports per capita) would achieve levels of human development, quality of life and economic growth, higher to its similar ones. Those who defend free trade believe that this brings benefits to the less open countries, because by increasing imports it is obliged to National companies to discipline themselves "forcing them to adjust prices to costs marginal and thus reducing the distortions created by monopolistic power ". At the same time, trade liberalization. The productivity of companies. intermediates of high quality at lower prices "and finally", the The productivity of companies increases when the inputs come in contact with demanding international clients and with the "best practices" of their external competitors. In addition, domestic companies can benefit if they have the opportunity to redesign the products of foreign companies ". An agreement of the type of the current FTA negotiated between several Andean countries and United States would be beneficial as long as as a whole never sectoral throw a positive net result, that is, adding all the good and subtracting everything the bad, you get a utility for the country. So far according to what agreed in the table texts of the negotiation the net result that Colombia would be getting serious for many experts still seem difficult to clarify.

However, there are also those parties that consider that it is beneficial for our country, that the FTA free trade agreements be carried out.

Positive effects of the FTA.

The supporters of the Treaty consider that it has the following favorable effects: - Access without tariffs to the United States for almost 100 percent of the Colombia's exportable industrial offer, which must not only maintain employment current in the sector but generate new places.

- Generating legal stability for investors and positioning as an entry platform to the US for third-party entrepreneurs’ countries (which should translate into greater domestic and foreign investment in the nation, although in an amount difficult to quantify exactly). - The contribution of some percentage points to economic growth: the figure of this contribution also remains without consensus. The growth of the country's international trade volume, both in exports as in imports. The improvement of the international perception that Colombia has abroad which should "reduce somewhat the country risk and the cost of borrowing abroad".

- Access (in a difficult proportion to be precise) of Colombian companies to purchases of the US public sector. - The strengthening of controls on biopiracy, which should improve the protection of Colombian biodiversity and other traditional knowledge. Access to training, technical assistance and technology transfer, in a few areas, within the framework of international cooperation projects agreed upon in the FTA (this should make the benefited companies more competitive and productive).

To facilitate (to some extent) the access of some of Colombian professionals to the United States in order to provide services. In addition, there would still be time to tilt the balance further in favor of Colombia achieving objectives such as the approval of Colombian titles in the United States, to agree even more flexible rules of origin for Colombian exporters, expanding the total amount of the venture capital fund that will be created, and (perhaps the most important of all) the creation of a committee permanent bilateral decision-making that would provide real access to Colombian agricultural exports, so that Colombia could exploit intensively its comparative advantages - natural resources - and create sustainable competitive advantages over time, which irrigate employment and wealth in the entire Colombian nation.

Negative Effects of the FTA

Those who are against the FTA argue in general that in the net balance Colombia would continue to obtain a minimum profit, and reproach the following: - Unequal distribution of advantages of the FTA: The government officially assumed that there are winners and affected when this treaty came into force. Different trade unions have expressed their rejection of this agreement considering it harmful to the national economy, mainly in the agricultural and intellectual property aspects. Sectors harmed are rice, wheat, corn, sugar, poultry, cattle and cattle. the swine They will be affected, not because they disappear, but because now they will have to earn less, work more and compete more. In any case, there will be very large structural changes if the FTA goes into effect.

- Lack of popular consultation (which would be essential in such an important matter). The disputes around the FTA are increased by the absence of a popular consultation on the matter. Until now, different unions, unions and ordinary citizens have expressed their rejection of this agreement considering it harmful to the national economy, mainly in the agricultural and intellectual property aspects.Other economic sectors are clearly benefited, such as garments, flowers, Plastics and leather goods. Faced with these wide divergences, a popular consultation could be useful.

Bibliography: https://es.wikipedia.org/wiki/Tratado_de_Libre_Comercio_entre_Colomb ia_y_Estados_Unidos

http://www.aldiaempresarios.com/index.php?option=com_content&view= article&id=3620:tlc-entre-colombia-y-estados-unidos-en-ingles-colombiatrade-promotion-agreement-tpa-&catid=1140:tlc-eeuucolombia&Itemid=336

http://www.tlc.gov.co/publicaciones/5398/acuerdos_vigentes