Evidencia 3: Ensayo "Free Trade Agreement (FTA) : Advantages and Disadvantages"
Evidencia 3: Ensayo "Free Trade Agreement (FTA) : Advantages and Disadvantages"
Evidencia 3: Ensayo "Free Trade Agreement (FTA) : Advantages and Disadvantages"
after several rounds of negotiation, which seeks to accelerate the economy through the
Basically, an FTA seeks to increase capital flows derived from trade between countries,
In the case of the agreement signed between Colombia and the United States, this is
known as TLC, although its technical name was Trade Promotion Agreement, in English
Trade Promotion Agreement (TPA). The basic objective of this deal is the reduction of
tariffs and taxes so that the producers of the two countries can trade freely. Under this
treaty, Colombia eliminated the tariffs for the entry into the country of about 82% of the
industrial products generated in the United States, meanwhile, USA. He eliminated them
This FTA, like the other agreements signed by Colombia, is constituted by rules and
procedures derived from them, which are applicable on equal terms for both countries.
The FTA 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 must be
The FTA is a kind of methodological guide on how to export - import between 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 that the two countries issue legislation for 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 appropriate to boost
international trade and especially protect and promote the export of its products.
The current agreement with the United States is organized in a twenty-three chapter
Preamble
Chapter 10 Investment
Chapter 14 Telecommunications
Chapter 15 Electronic Commerce
Chapter 18 Environment
Chapter 19 Transparency
The FTA signed with the United States entered into force on May 15, 2012, as presidents
Juan Manuel Santos and Barack Obama agreed at the Summit of the Americas this year.
This Agreement, like other FTAs, does not have an "expiration date", but any of the parties
may request the reform or termination of the other by following the procedure contained
It is still too early to assess the advantages or difficulties arising from the signing of the
Increase and acceleration of economic growth derived from the greater flow of capital.
Increase in exports, especially those of products and services that were not previously
technologies, raw materials and knowledge from the other country at lower costs.
Stability of the labor market in the industrial sector, to the extent that companies will
require their staff to produce the goods they will export. Likewise, there is the possibility
As with the advantages, the picture of difficulties and risks is not easy to foresee, but
Imbalance of the internal economy and lack of protection of productive sectors that have
Mismatch in tax revenue, since eliminating the import tariffs of foreign products would
cease to receive taxes for this concept, which could deepen the national fiscal deficit;
However, analysts expect this money to be recovered by VAT and Income Tax derived
standards of production, generating monopolies and capture of the market by the North
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