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

Actividad de aprendizaje 11 Fase de ejecución Evidencia 3: Ensayo “Free Trade Agreement Agreement (FTA): advantages and disadvantages”

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Presentado por: Ervin Fabian Enriquez

Fase Ejecución

SERVICIO NACIONAL DE APRENDIZAJE SENA Negociación internacional

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. 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 Scope of the Agreement The FTA is an agreement that generates opportunities for all Colombians, without exception, as it contributes to creating jobs and improving the performance of the national economy. Initially it benefits the exporting sectors because they will be able to sell their products and services, under very favorable conditions, in the US market. But not only to exporters, also to all other domestic producers. The subjects that were negotiated were those considered as general, that is, access to markets, in its two aspects (industrial and agricultural); intellectual property; investment regime; State purchases; dispute resolution; competition; electronic commerce; services; environmental and labor The service sector is already the largest in the Colombian economy. High valueadded services are the great driver of the world's economies, foreign investment is included because there is great interest in attracting it. Intellectual property was

also negotiated, a highly sensitive issue; and State purchases, a very important element to boost trade. Content of the Agreement The text of the agreement was reflected in a preamble and 23 chapters. The chapters usually include aspects of the agreed general disciplines, many of them common in both multilateral and bilateral negotiations, and incorporate particular elements obtained by both Colombia and the United States in the negotiation.

FTA Organization Colombia - United States Preamble Chapter 1 Initial Provisions and Initial Definitions Chapter 2 National Treatment and Access of Goods t o 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 These international trade agreements bring to Colombia, the advantage that their employers can sell their products and services abroad under better conditions, without paying taxes (tariffs) without being subject to other barriers, which do have to pay in case of not having these treaties. 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 of their production. Colombia we are small in the impact that it can generate in the North American production therefore the economists consider that the TLC will be generous. Taking into account the following aspects within the treaty

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Access to markets farming Industry Services Public Purchases Other issues of access to markets Cross-cutting issues Intellectual property Investment Competition policy Laboral things Environmental matters