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Advantages
General Benefits
Consumers will be one of the groups most benefited by this treaty. In all segments
of the economy consumers will have greater options in terms of quality and price,
which will increase the purchasing power of Colombians.
Some sectors benefitedA) Farming
-Flowers: The FTA guarantees stable and duty-free access to the United States for
Colombian flowers that in the absence of the agreement and the tariff preferences
must pay a tariff of more than 6%. This sector depends totally on exports and
generates more than 200 thousand jobs in Colombia.
-Accar: This is one of the products of greater potential of offensive of Colombia
and of greater protection in the USA. NAFTA will significantly increase the
Colombian export quota This quota includes some industrial products with sugar
content that are part of the program of productive transformation.
- Dairy products: Colombia will get a preferential access quota for dairy products,
most of which are concentrated in cheeses, our greatest export potential. They
also have a significant weight in the quota butters and other dairy products like
flavored milks. The health provisions will allow these commercial opportunities to
materialize in the short term.
-Tabaco: FTA consolidates and improves access to the United States of tobacco
and its products. In cigarettes will obtain a rule of origin that during the first years
will allow to mix raw materials from third countries while the national supply
reaches the required level. A preferential quota was obtained without tariffs and a
15-year relief. This product is of great importance for rural employment since it
generates 250 jobs per ton produced and there are areas that produce up to two
tons per hectare.
-Other products benefited: The Colombian meat sector will also benefit from
greater real access to the United States market as well as the fruit and vegetable
sector which has shown great potential in other agreements with Latin American
countries
B) Industrial
-Sector Textile, clothing, design and fashion: The FTA guarantees stable access to
the US market in this world-class sector. In the case of garments, the uncertainty
generated by the short ATPDEA renewals has negatively impacted the exports of
this sector which, without preferential access, must pay tariffs of up to 30%. Of
note is the improvement in rules of origin against the ATPDEA and the access that
will obtain the clothing line for the household is not included in the tariff
preferences.
- Alternative energy: USA Has a growing demand for fuels obtained from sources
other than oil. For Colombia it is very important to consolidate the preferences
included in the ATPDEA regarding ethanol and open access for fuels generated
from the palm. FTA consolidates the market that has emerged for the Colombian
export of fuel oil, a product derived from petroleum, of which the United States
imports more than US $ 50 billion a year. In addition, a flexible standard of origin
has been achieved, allowing the incorporation of raw materials from countries not
members of the agreement.
-Other sectors: Other sectors that will benefit from a permanent elimination of
tariffs and the improvement of the conditions for investment in Colombia will be
fishing, auto parts (both included in the program of productive transformation),
leather, footwear, plastics, porcelain industries And jewelry.
C) Services
In general terms, the greatest potential for the use of the FTA in services is the
graphic industry, software and information technologies, the outsourcing of
business processes and health tourism, all sectors included in the Productive
transformation program.
Disadvantages
Do you think FTA is the best option for a country like Colombia to create job
opportunities and to grow worldwide?
Colombia currently has 13 trade agreements in effect, five in negotiation and one in
the process of approval. Despite the many complaints, experts agree that the
future of domestic trade is to continue with them.
Different unions, leaders, employers and even trade unions have opposed the
continuation, approval or negotiation of the Free Trade Agreements (FTAs) with
arguments in which they expose that these agreements violate their rights and
labor guarantees and that the national industry only Would go backwards with its
implementation. They assert that the FTAs accentuate the productive decline of
"decent" employment in the country prioritizing the primary export model. On the
other hand, they point out that the signing of trade agreements with nations of high
industrial development will only perpetuate dependence on other markets in the
country, with the agricultural sector and the energy miner being the most affected.