AMERICAN FREE TRADE AGREEMENT

(AFTA)

Culture and Regional Economy of America

Ingrid Mayerli Gómez Mendieta

Sandra Lizeth Ruiz Barreto

William Bernardo Huertas Galindo

Ana Patricia Hernandez Gómez

Jesika Natalia Guerrero Cardenas

Politecnico Grancolombiano

Bogotá D.C.

2019
 TABLE OF CONTENTS

1- Introduction
2- Research Problems
3- Justification
4- Hypothesis8
5- General objectives
6- Specific objectives
7- Characterization of the countries
8- Theoretical framework
9- Legal framework
10- Conceptual framework
11- References
1- INTRODUCTION

In recent decades, integration phenomena have become much more common. The growing
globalization accompanied by the predominance of a free market economic model which is
nourished by the exchange between nation-states, has made it necessary to adopt measures
tending to improve the negotiating position vis-à-vis other states.

The formation of this type of integration comes basically from a functional need, in which
each one of the states that decides to integrate sees in it an opportunity to maximize its
economic benefits, reach its national goals and at the same time acquire greater
competitiveness at the international level. It is for this reason that we have chosen to analyze
integration processes from the perspective provided by the functionalist theory of
international relations, which assumes the inability of the modern state to meet complex
needs of national interest, to fill that lack, proposes the gradual creation of a network of
international organizations that would assume the management of specific sectors.

One of the most recent integrations is NAFTA (North American Free Trade Agreement), a
free trade zone between Canada, the United States and Mexico. The Treaty allows reducing
costs to promote the exchange of goods between the three countries, so in this paper we want
to study the feasibility of integrating new countries such as Colombia, Argentina and Brazil
to this agreement, in order to strengthen new business relationships that allow economic,
political and social development.

North American Free Trade Agreement (NAFTA)

It is a free trade zone between Canada, the United States and Mexico that came into force on
January 1, 1994. The Treaty allows reducing costs to promote the exchange of goods between
the three countries.
The North American Free Trade Agreement (NAFTA) was a major milestone in U.S. trade
policy. It was the first trade agreement between the United States and multiple other
countries, and the first to attempt to comprehensively address trade in goods and services. It
was also the first pact to consider trade issues related to investment and intellectual property
rights.

NAFTA accelerated trade liberalization already in process and implemented new provisions
for further commercial expansion among the three partners: the United States, Canada and
Mexico.

When the NAFTA was signed, a 15-year deadline was set for the total elimination of customs
barriers between the three countries. In addition, it was agreed that existing restrictions on
the trade of various products, including motor vehicles and parts for these, computers, textiles
and agriculture, should be removed. The treaty also protects intellectual property rights
(patents, copyrights and trademarks) and highlighted the elimination of investment
restrictions among the three countries.

In general, the wealth of economic analysis on the impact of NAFTA in the United States
generally finds the following:

• NAFTA resulted in significant increases in trade in goods, services (such as financial

services, legal services, education and tourism), and investment among the three countries.

• NAFTA has created a trade surplus in services for the United States with Canada and
Mexico.

• The economies of the three countries became more closely intertwined as complex supply
chains, integrated manufacturing processes, and the services and investments developed to
take advantage of the trade liberalization that agreement provoked.

The main objectives of the treaty are:

• Promote the conditions for fair competition.

•Increasing investment opportunities.

• Provide adequate protection of intellectual property rights.

• Establish effective procedures for the application of the FTA and for the solution of
controversies.

• Promote trilateral, regional and multilateral cooperation, among others.

• Remove barriers to trade between Canada, Mexico and the United States, stimulating
economic development and giving each signatory country equal access to their respective.

Elimination of Barriers to Trade and Promoting Fair Competition

NAFTA locked in existing tariff treatment for trade in goods between the three countries as
of the date of enactment, and for most products began a process of eliminating those tariffs
over the next decade. By 2005, tariffs on goods traded among the three countries averaged
essentially zero. The agreement also generally prevents the implementation of any new
prohibitions on imports of goods from the other partners that did not exist before the
agreement. NAFTA extensively lays out rules for specific goods to be eligible for tariff-free
status under NAFTA, as well as rules tailored to each member country (so-called “rules of
origin”). These rules and tariff reductions help to promote increased trade among the parties
and ensure that no single country has an unfair advantage over the other two. The principle
is that goods from any of the three countries should be treated the same as domestic goods
for market access in each country.

Cross-Border Service Trade

The agreement also generally requires that services traded between the three countries should
be treated in the same manner as domestic services. Trade in services can include provision
of legal, financial, insurance, or other services in another country, among others. Tourism
and telecommunications are also considered trade in services, as is the provision of education
to foreign students. Under the agreement, cross-border service providers do not have to
maintain a representative office in other NAFTA countries to conduct business there.
NAFTA prohibits countries from adopting overly burdensome licensing and certifications
for foreign Service providers and ensures such measures are not merely disguised trade
barriers. The agreement also mandates similar standards among the countries for recognition
of education, experience, licensing, and certification obtained in the other countries. NAFTA
asks that temporary licensing systems be adopted for engineers that are professionally
recognized in another partner country.

Rules of Origin

Rules of origin determine when a product qualifies for duty-free treatment under NAFTA.
The rules in NAFTA set out the extent to which a good must be produced (originate) in one
of the NAFTA countries to qualify for preferential tariff treatment under the agreement. At
the first level, goods produced entirely in—and from inputs also made entirely in—any of
the three NAFTA countries can qualify for duty-free import into another NAFTA country.
However, the rules also allow goods that are not entirely 9 bipartisanpolicy.org made from
inputs from Canada, Mexico, or the United States to still qualify as a “NAFTA product”
under certain circumstances. These rules of origin are created specifically for each product
and are based on whether the final product has 1) a change in Harmonized Tariff Schedule
classification from its inputs, also known as a “tariff shift,” 2) a minimum specified value
content originating from within the NAFTA countries, or 3) both. These types of rules are
explained below.

Investment

NAFTA established rules that investors from any partner country must be treated equally as
a domestic investor would be under the law. Countries cannot impose on investors from the
other two countries domestic ownership requirements that require a minimum level of equity
in an enterprise of another party be held by its own nationals, and no country can force an
investor from one of the other countries to sell any investment made within its territory. The
agreement allows countries to impose regulations and requirements for the application of
health, safety, and environmental standards.

Resolution of Disputes
NAFTA established a Free Trade Commission to supervise the implementation of the
agreement and to help resolve disputes.c Disputes that fall under the jurisdiction of both
NAFTA and the General Agreement on Tariffs and Trade (GATT, a global agreement
generally governing the rules of trade among nations dating from the post-World War II era,
currently managed by the World Trade Organization) may be settled in either forum. If a
resolution cannot be worked out between the parties, the commission may assist the parties
in resolving a dispute. If a dispute has still not been resolved at this stage, the commission
may establish an arbitration panel to settle the dispute. NAFTA established an extensive list
of committees and working groups to help facilitate effective trade relationships and prevent
or resolve disputes.

Intellectual Property Protection

Under NAFTA, all countries must afford adequate and effective intellectual property
protections to nationals of other parties. Intellectual property protections include copyright,
sound recordings, trademarks, patents, trade secrets, and others. These protections shall, at a
minimum, be guaranteed by various international conventions on intellectual property rights.
NAFTA countries must treat partners the same under the law as their own nationals in
enforcing their intellectual property rights. The legal process must be accessible to nationals
of all parties to resolve any intellectual property disputes. Criminal procedures must be
available as a mechanism of enforcement of intellectual property law.

Environmental Provisions

The North American Agreement on Environmental Cooperation was another side agreement
added to NAFTA prior to its implementation. The major goals of this side agreement were
to foster the protection and improvement of the environment, promote sustainable
development, increase cooperation and compliance with the law between parties, avoid the
introduction of new environmental-related trade barriers, promote economically efficient and
effective environmental measurers, and promote pollution prevention policies.
2- RESEARCH PROBLEMS

Integration has been a constant in the history of Latin America reflecting the struggle between
dependence and autonomy. This paper analyzes the opportunities and limits of this Latin
American integration contrasting the different integration initiatives, objectives and results
to formulate various integration scenarios taking into account traditional and new external
dependencies.

History of the problem

Before the economic opening and the final reduction of import tariffs (1992) Colombian trade
in general had a captive domestic market; the protectionist economic model and its high
tariffs did not facilitate the entry of other products to the country, which allowed them to
have internal prices higher than the international market. This situation brought about a lack
of knowledge of the real needs of consumers and a move away from them.
Then the process of economic opening the country's doors were opened, reducing import
tariffs and trade situation changed radically. The tariff decreased from 53% in 1989 to 43%
in March 1990, then to 18% in August 1991 and in March 1992 was reduced to 15%.1

America is a business partner of great importance to the three countries, the volume of annual
transactions has a definite weight for the trade balance, therefore, currently is seeking to reach
more beneficial trade agreements, in this case, they are sought take advantage and anticipate
problems carrying out the Free Trade Agreement between the countries

For both it is important that the experience of other countries that have signed an FTA with
the US has been that its exports have grown substantially. In Chile, for example, they have
increased by more than 12% this year, yet it has entered into force this TLC. In Mexico,
meanwhile, they have grown 176% since when NAFTA came into force. With the ATPDEA,
it has seen the Colombian export 30% this year.
 You have to look for new markets given the volatility of trade with neighbors. Exports to
Venezuela and Ecuador were reduced by 54% and 10% between January and July 2003. The
decline in exports to these countries has been offset by exports to the United States, thanks
largely to the ATPDEA, why these preferences they must become permanent.

Problem Statement

In any country in the developing world regardless of their situation geography, politics or
ethnicity, we believe this will depend for economic development and growth, largely foreign
trade.

Therefore it is seeking to improve the ability to trade with different countries in this research
specific to the integration of three countries with NAFTA reference will be made this pact
seeks to increase the rate of economic growth, a significant expansion of exports, increased
competitiveness of enterprises, greater sector diversification, job creation resulting from
increased export activity, increased productivity by the liberalization of trade in services,
modernization of the entities involved in foreign trade.

In this study the advantages and disadvantages that can contract signing and implementation
of integration into NAFTA, when this is seen as a tool to gain competitive advantage in the
market will be investigated. a general analysis of the parameters and the areas involved, as
well as the central themes will be made, based on the information that can be obtained
through the media, books, magazines and internet.

3- JUSTIFICATION:

The present investigation will focus on studying the NAFTA TLC.

Thus, the present work would allow to show the events and the results that this treaty has
generated in the countries, the changes and to deepen the theoretical knowledge on the
processes of adaptation besides offering an integral look on the economic growth for the
countries. We also want to present a possible new FTA between Colombia, Argentina and
Brazil.
In 1989, a Free Trade Agreement was signed between Canada and the United States. But it
is only in 1990 that the Presidents of Mexico and the United States decide to begin the
negotiation of a comprehensive free trade agreement, and in September of that year, the
President of Canada communicates his interest to participate in the discussions to celebrate
the treaty.
On June 11, 1990, Carlos Salinas de Gortari, President of Mexico, and George Bush,
President of the United States, agreed to negotiations on a free trade agreement between the
two countries. Later, Canada joined the negotiations, thus initiating the trilateral work with
the objective of creating a free trade zone in North America. In 1991 the presidents of the
three countries announced their decision to negotiate NAFTA and in June of that year the
first ministerial meeting of negotiations was held.
The negotiations concluded on August 11, 1992, by the Heads of Government of the three
countries. The negotiations that led to the signing of the NAFTA lasted fourteen months and
produced controversies in the three countries, mainly due to the inequality of wages of the
three economies, the possibility of illegal migrations due to the opening of trade, and the loss
of autonomy in the policies macroeconomic.

Finally, the Treaty was signed simultaneously in the three capitals on December 17, 1992, in
1993 it was approved by the Legislative Assemblies of Canada, Mexico and the United
States, and came into force, together with the Agreements on Environmental and Labor
Cooperation, the January 1, 1994.

OBJETIVE:

The purpose of the NAFTA is the improvement of a Free Trade Area in goods, services and
capital for the year 2005. Within this object we seek: Promote the conditions for fair
competition.

Increasing investment opportunities. Provide adequate protection of intellectual property

rights. Establish effective procedures for the application of the FTA and for the solution of
controversies.
Promote trilateral, regional and multilateral cooperation, among others. Remove barriers to
trade between Canada, Mexico and the United States, stimulating economic development and
giving each signatory country equal access to their respective markets.

What the Treaty includes

The Treaty comprises:

1. The inclusion of commitments for the progressive elimination of tariff barriers within a
period of fifteen years for especially sensitive goods, such as corn, beans and milk powder.
Only goods fully produced in a member country, those that change their position in the
customs nomenclature and those that comply with a minimum of national or regional
components are entitled to the benefits of the Free Trade Zone. Most of the tax relief in
Mexico should be fully complied with in 2004, subtracting only the taxes applicable to a
group of highly sensitive products until 2009.

It does not provide for a Common External Tariff applicable to third countries.
The general principles of the commercial regime are the universal coverage of the opening;
the gradualness; and the difference in the rate of tariff reduction according to the development
levels of its three members.
It imposes disciplines that cover the wide field of non-tariff barriers, foreign investment,
intellectual property rights, trade in services and dispute resolution systems.

In terms of investments, NAFTA is governed by the following principles: national and most-
favored-nation treatment; elimination of performance requirements; free transfer of funds;
expropriation only in case of public benefit and with compensation at market value; right to
request international arbitration in investor-state disputes.
It is inspired by the pre-existing Free Trade Agreement between the United States of America
and Canada, which continues in force between these two countries with respect to certain
matters. Thus, for example, in terms of agricultural trade, market access is regulated
bilaterally, although commitments on subsidies, sanitary and phytosanitary measures, rules
of origin and safeguards are subject to trilateral commitments.

Member countries

The Free Trade Zone of North America is made up of Canada, the United States of America
and Mexico.
Institutional structure

Free Trade Commission

The maximum body, made up of officials at the cabinet level designated by each of the
parties. The Commission meets at least once a year and makes its decisions by consensus. It
has the assistance of committees and working groups on specific subjects or topics.
Almost completed the first quarter of the year in which it should remain, if not signed, at
least negotiated the FTA with the United States, the following considerations should be
made: The urgency manifested from the beginning by Colombia in negotiating a treaty this
type, despite the recent statements by the President and the Minister of Commerce not to rush
us, has an additional factor that recommends speeding up the process. This is the electoral
year in that country and the possibility of a change of administration.
Likewise, the same presidential contest and the number of trade agreements that the US has.
has signed or is in the process of concluding or negotiating, turn this point into a, wins,
increasingly when facing issues such as employment, the relocation of American companies,
the displacement of local production, etc. It is important to note that the phenomenon of
commercial treaties of this nature and number is something new in that country and that
therefore it constitutes an experience that in light of the political debate can be used as a
powerful weapon in different ways.

In our country Colombia, the central arguments in favor of the FTA are the unavoidable need
to increase investment to levels that are not achievable with our savings and within the current
framework, to achieve sustained growth rates of 5 percent per year, and the imposition of
increasing our exports at rates of the order of 13 percent per year to compensate for the
inevitable fall of our oil production-about which little is said-, besides serving to justify the
treaty, generate important questions on which we must begin to act out. For example, the
mere fact of the existence of the FTA will not attract the foreign investment that we require.
Less when, unlike the time when Mexico negotiated Nafta and was the only country that had
this leverage, our treaty will be in force at the same time as those of other countries with
which we will have to compete. An anticipated and coordinated action is then needed to
develop a plan to promote and attract foreign capital and technology. Plan and manager are
required. If we are talking about the increase in exports, now we need to improve our
competitiveness in all its components. Here, too, the signing of the FTA will not, by magic,
elevate it and therefore induce the growth rates of exports that are alleged to support the
treaty. Plan and manager are required.

That is why the effort should not focus on negotiating well and without careers. The other
agenda, internal, which should seek to attract capital and fill the gaps and overcome the
obstacles that our ability to compete has, is a challenge as true as the negotiation itself. With
the difference that if we do not do the homework well, on time and in a manner consistent
with the potential opportunities that are created, a good negotiation. At least to achieve the
objectives with which we are justifying the FTA.
There is a history of integration between the signatory countries of NAFTA since 1965: In
that year, the United States and Canada signed the Automotive Pact, and the maquiladoras
program was established in northern Mexico, which promotes a very important integration
between Mexico and Mexico USA.
Why do we consider integrating the countries of Colombia, Argentina and Brazil to the
NAFTA FTA?

COLOMBIA.

Because, it is part of the new or second generation agreements, because it covers issues that
go beyond traditional trade subjects such as services, intellectual property, government
purchases and foreign investment. The agreement is structured in the form of a free trade
area, which has all the characteristics of open regionalism, since it seeks to maximize the
opening of markets. It is a vertical type agreement (north-south) to the extent that it includes
countries with different levels of development.
It is a treaty of symmetrical type as long as the rights and obligations are common to both
parties. However, in the negotiation of the different thematic areas, measures such as
technical assistance in specific areas are included, in order to facilitate the adjustment of the
Colombian economy to the new circumstances. The agreement includes commitments in
environmental and labor matters, in addition to issues related to trade. It states that the two
countries will endeavor to support each other's environmental and trade liberalization
policies, taking into account the efforts undertaken by the WTO and other international
organizations. In addition, they undertake to ensure, in accordance with their respective laws
and regulations, the observance and promotion of labor rights and recognize the International
Labor Organization (ILO) as the entity competent to establish and deal with the issue.
According to the Bank, the proposal is realistic since 90% of regional trade is already free of
tariffs. In addition, the two major economic blocs in the area, MERCOSUR and the Pacific
Alliance, have already expressed their willingness to join, so the IDB calls on the
governments of Argentina, Brazil and Mexico - the main referents of the groups - to assume
the leadership of the initiative.

ARGENTINA

According to the Bank, the proposal is realistic since 90% of regional trade is already free of
tariffs. In addition, the two major economic blocs in the area, MERCOSUR and the Pacific
Alliance, have already expressed their willingness to join, so the IDB calls on the
governments of Argentina, Brazil and Mexico - the main referents of the groups - to assume
the leadership of the initiative.
Due to its membership in Mercosur, Argentina does not have bilateral free trade agreements,
but has free trade agreements as part of the regional bloc. Once the rules have been negotiated
and approved by the decision-making bodies of the bloc, they are mandatory and, when
necessary, they must be incorporated into national legal systems through the procedures
provided by the legislation of each country.
 BRAZIL

All the countries of Latin America have some agreement or preferential treatment with Brazil
(the MERCOSUR countries, the Andean Community, Chile, the countries of the ALADI,
Mexico ...). The European Union has an agreement with MERCOSUR.
The advantages offered by a commercial agreement signed with Brazil (tariff reductions, the
regime of origin, technical standards, investments, intellectual property rights, public
markets, trade in services ...) But it is also necessary to know the treaties that Brazil may
have with other countries.

4- GENERAL OBJECTIVES

The general objective is to be able to analyze the NAFTA agreement and see how to viable
it would be to integrate more countries in the Latin American continent such as Colombia,
Argentina and Brazil, since these are countries that can positively strengthen the agreement
that already exists. Established and thus enrich the ties whether commercial, cultural and
other between these countries.

The idea of this paper is to examine the nature of the NAFTA treaty, its possible evolution,
Both from an institutional and geographical perspective, and the impact that this could have.
Then we describe in broad strokes the divergence between the interests of the NAFTA
countries and, in this context, we examine the costs and benefits generated by the entry of
other Latin American nations into the NAFTA; including its incidence in the social aspect.

The existence of innumerable trade rights in the original world what Jagdish Bhagwati (2008)
affirms: to distort the advantages of free trade and generate an increase in administrative
costs; For its part, the Wonnacott brothers (1995) argue that the innumerable treaties will
generate trade distortion.

5- CHARACTERIZATION OF THE COUNTRIES

CANADA

Population: The estimated population of Canada is 36,885,049 inhabitants according to

October 2017 data from the Canadian Institute of Statistics

Language: The official languages of Canada, according to its Constitution, are English and
the French. Each province determines its official language: in Québec it is French, in New
Brunswick the English

Currency: The currency is the Canadian dollar

Religion: The most practiced religion is Catholic

Form of State: As a member of the Commonwealth, Canada is formally a constitutional

monarchy, being its Head of State Queen Elizabeth II of England, which is represented by a
Governor General. It is constituted also as a federal state endowed with a democratic political
system parliamentary.

The external projection of Canada was reinforced independently to the United Kingdom as a
result of their participation in the two World Wars. Is member of all major international
organizations that correspond to him geographically, founding member of NATO and OECD
and belongs to the OAS Historically, it has played an active role in the United Nations,
especially in relation to Peacekeeping Operations.

Canada is part of almost all international instruments on Rights Humans. The main economic
partner and political ally of Canada is its neighbor, the United States. Their economic
relations are framed through the Treaty of Free Trade of North America –NAFTA. Canada,
aware that its great interrelation, fundamentally economic, with the United States (about 76%
of its foreign trade), it makes it very vulnerable to the internal economic oscillations of its
neighbor, it has been designing

a policy of economic diversification that has led him to rethink his objectives in foreign
policy. (España, 2018)
Canadian Demographic changes

Three effects influence a country’s population growth: the birth rate, the death rate, and net
immigration. For much of Canada’s history, the growth in Canada’s population was the result
of natural increases, which is the difference between births and deaths, with net immigration
playing a significant role only in select periods. However, in recent years, Canada’s fertility
rate3 has fallen below the level required to replace Canada’s existing population, resulting in
net immigration being responsible for most of Canada’s population growth, which itself is
slowing over time (Taylor , Jason , & Milagros , 2017)

International comparisons The proportion of people living in rural areas in Canada (18.9%)
is among the lowest of the G8 countries, with only the United Kingdom having a notably
smaller proportion More than 2 persons in 10 live in a rural area in France, and more than 3
in 10 in Japan. The proportion of the population living in rural regions is much higher in
some other countries. In India, for example, more than 2 in 3 people live in rural areas, and
in China, more than 1 in 2. Many African countries also have high rural proportions,
reflecting major differences in geography and economic structure among the different
countries of the world. (Canada's rural population, 2011)

UNITED STATES

Official name: The United States of America, or USA in acronyms; United States of America,
abbreviated, United States, USA or EE. UU

Currency: The dollar has been the official currency of the country since 1792.
Religion: The United States is officially a non-denominational state
Form of State: Constitutional Federal Republic with a presidential system

Active population and labor market. Unemployment: The activity rate is high in the US
(62.7%) remains at the same level of 2016. In December of 2017 the number of active people
amounted to 160.6 millions of people.
Foreing Policy
The Administration of President Trump presented in December 2017 a new National Security
Strategy (ESN) inspired by the idea "America First", that seeks to return to 'realism based on
principles' and seeks to achieve four major objectives: protect the country and the American
people; Encourage the US prosperity; preserve peace; and boost the influence of the US in
the world.

As for the United States' history on treaty issues, it would be worth remembering that they
had free trade agreements ("FTAs") with Israel and Canada since 1988. However, these
agreements served more as a test than as precursors to NAFTA. In particular, the FTA with
Israel did not have great effects so far in any of the countries parties. On the other hand, the
FTA with Canada served as a very rich source of information for the drafters of the NAFTA.

MEXICO

Official name: United States of Mexico

Currency: Mexican peso divided into 100 cents
Form of state: the Constitution of 1917 defines its organization as "a representative,
democratic, secular, federal Republic, composed of free states and sovereigns in everything
concerning their internal regime; but united in one federation established according to the
principles of this fundamental law”
Language: The 1917 Constitution does not establish any official language. Practically, 100%
of the Mexican population speaks Spanish.

Among the strengths of the Mexican economy, recognized by international organizations,

and that give it a distinctive feature with respect to other emerging economies, it is worth
mentioning prudent and disciplined macroeconomic management, as well as the expected
effects of structural reforms in terms of stimulus to free competition and productivity.
Among the weaknesses of Mexico, is the cumulative effect of the sharp decline in oil
revenues since 2015, which has forced significant cuts in public spending; the increase in
public debt, which went from 39% of GDP in 2012 to 48% in 2016, which has forced the
adoption of restrictive measures, which have to contain its growth, with the level of debt
standing at 46% of GDP in 2017; the depreciation of the peso, as a result of the fall in
revenues from oil exports, the uncertainty about the possible negative effects for the Mexican
economy derived from the new relationship with the US.

General considerations
Mexican foreign policy has traditionally been articulated on two large axes: the bilateral
relationship with the US and relations with Ibero-America. More of the 70% of Mexico's
foreign trade and practically all of its political agenda, economic and security is determined
by its relationship with the US.
Relations with the USA
Mexico's relationship with the US is strategic. Both countries share a border of more than
3,000 km and a broad agenda that covers issues political, economic-commercial and security,
to energy issues, medium environment or education.

Multilateral relations
Mexico aspires to consolidate itself as a responsible, active and committed actor in the
multilateral sphere, in which it already has a long historical tradition. In this sense, Mexico
has always had a very prominent presence in international forums, as indicated in the United
Nations, promoting numerous initiatives
ONU

Mexico forms part of the 51 founding countries of the ONU on October 24, 1945, the date
on which the UN Charter came into force. Since the born of the ONU, Mexico has always
maintained its commitment to the objectives of the Organization, championing various
initiatives, including nuclear disarmament.

COLOMBIA
GENERAL INFORMATION

Colombia is a sovereign state largely situated in the northwest of South America. Colombia
shares a border to the northwest with Panama, to the east with Venezuela and Brazil and to
the south with Ecuador and Peru. It shares its maritime limits with Costa Rica, Nicaragua,
Honduras, Jamaica, Haiti, and the Dominican Republic. Colombia is a unitary, constitutional
republic comprising thirty-two departments, with the capital in Bogota. Is one of the most
ethnically and linguistically diverse countries in the world, with its rich cultural heritage
reflecting influences by indigenous peoples, European settlement, forced African migration,
immigration from Europe and the Middle East. Urban centers are mostly located in the
highlands of the Andes Mountains and the Caribbean coast.

Official languages Spanish

English is also official in the archipelago of San

Andrés, Providencia and Santa Catalina.

Recognized regional languages 68 local languages and dialects

Government Unitary presidential constitutional republic

President Iván Duque

Vice President Marta Lucia Ramirez

Independence

Declared July 20, 1810

Recognized August 7, 1819

Last unitarisation 1886

Current constitution July 4, 1991

Area Total 1,141,748 km2

Water (%) 8.8

GDP (PPP)
2019 estimate Total $791.995 billion

Per capita $15,719

GDP (nominal)

2019 estimate Total $355.163 billion

Per capita $7,049

Religion

Religion in Colombia is dominated by various forms of Christianity and is an expression of

the different cultural heritages in the Colombian culture including the Spanish colonization,
the Native Amerindian and the Afro-Colombian, among others.

The Colombian Constitution of 1991 abolished the previous condition of the Roman Catholic
Church as state church, and it established providing for freedom of worship.

The National Administrative Department of Statistics (DANE) does not collect religious
statistics, and accurate reports are difficult to obtain. However, based on various studies and
a survey, about 90% of the population adheres to Christianity, the majority of which (70.9%)
are Roman Catholic, while a significant minority (16.7%) adhere to Protestantism (primarily
Evangelicalism). Some 4.7% of the population is atheist or agnostic, while 3.5% claim to
believe in God but do not follow a specific religion. 1.8% of Colombians adhere to Jehovah's
Witnesses and Adventism and less than 1% adhere to other religions, such as Islam, Judaism,
Buddhism, Mormonism, Hinduism, Indigenous religions, Hare Krishna movement, Rastafari
movement, Orthodox Catholic Church, and spiritual studies. The remaining people either did
not respond or replied that they did not know. In addition to the above statistics, 35.9% of
Colombians reported that they did not practice their faith actively.

Economy

Historically an agrarian economy, Colombia urbanised rapidly in the 20th century, by the
end of which just 15.8% of the workforce were employed in agriculture, generating just 6.6%
of GDP; 19.6% of the workforce were employed in industry and 64.6% in services,
responsible for 33.4% and 59.9% of GDP respectively. The country's economic production
is dominated by its strong domestic demand. Consumption expenditure by households is the
largest component of GDP

Colombia is rich in natural resources, and its main exports include mineral fuels, oils,
distillation products, fruit and other agricultural products, sugars and sugar confectionery,
food products, plastics, precious stones, metals, forest products, chemical goods,
pharmaceuticals, vehicles, electronic products, electrical equipments, perfumery and
cosmetics, machinery, manufactured articles, textile and fabrics, clothing and footwear, glass
and glassware, furniture, prefabricated buildings, military products, home and office
material, construction equipment, software, among others. Principal trading partners are the
United States, China, the European Union and some Latin American countries.

In 2017, the National Administrative Department of Statistics (DANE) reported that 26.9%
of the population was living below the poverty line, of which 7.4% in "extreme poverty".
The multidimensional poverty rate stands at 17.0 percent of the population. The Government
has also been developing a process of financial inclusion within the country's most vulnerable
population.

The contribution of Travel & Tourism to GDP was US$5,880.3 billons (2.0% of total GDP)
in 2016. Tourism generated 556,135 jobs (2.5% of total employment) in 2016. Foreign tourist
visits were predicted to have risen from 0.6 million in 2007 to 4 million in 2017.

Unemployment

In January 2019 the unemployment rate in the total of the 13 cities and areas metropolitan
areas was 13.7 percent, the global participation rate 65.3 percent and the occupancy rate 56.4
percent. For the same month of 2018 they were located in 13.4 percent, 65.4 percent and 56.6
percent, respectively.

The national unemployment rate for the mobile quarter November 2018-January 2019 was
10.4 percent, which represented an increase of 0.8 percentage points compared to the mobile
quarter November 2017-January 2018 (9.6 percent).
According to the entity, in the month 298,000 people between 25 to 54 years were
unemployed. The sectors where the dismissal was most frequent were commerce, hotels and
restaurants.

Culture

Most of the Colombian population is mestizo, a product of the mixture of Spaniards and their
descendants with the indigenous people who inhabited the region and black people who were
brought by the Spaniards as slaves at the beginning of the 16th century. This variety of
cultures and customs gave rise to the rich Colombian folklore, its exquisite cuisine and its
large number of cultural events.

In Colombia, the development of fine arts is carried out through conservatories, concert halls,
galleries and schools that operate independently or cooperate with universities in several
cities.

The most notable crafts of Colombia are textiles and ceramics from the municipalities of
Ráquira, Espinal and Malambo. Other popular crafts are wicker baskets and lace.

Probably, the most important folkloric expression in Colombia is music. Songs and melodies
of indigenous origin are heard only in certain geographical areas. The musical tradition of
the mestizo population varies from region to region and includes rhythms such as bambuco,
cumbia and vallenato.

Culture of doing business

In a company it is very important to maintain a defined business culture or protocol, since

from this is going to characterize and mark the difference of the product and the image that
the organization will represent to entrepreneurs who want to establish business relationships.

In order for the business culture to be carried out in the best way, each member of a company
must have knowledge about the mission and vision. These two points reflect the reason for
the existence of the company, the objectives and the ideology, etc., since in one way or
another they are defining the negotiation protocol of the organization.

Similarly, negotiating with a national or international entrepreneur is a great opportunity that

will open the doors to the entity.
BRAZIL

GENERAL INFORMATION

With its 8,511,965 km2, occupies almost half of the surface of South America. It is bounded
on the north by Venezuela, Guyana, Suriname, French Guiana and the Atlantic Ocean; to the
east by the Atlantic Ocean; to the south by Uruguay; to the west by Argentina, Paraguay,
Bolivia and Peru and to the northwest by Colombia. The republic has a common border with
all the countries of South America except Chile and Ecuador, its border lines are 14,691 km,
7,941 km extension of its heights. Brazil is the fifth largest country in the world. Its maximum
distance from north to south is 4,345 km and from east to west of 4,330 km.
Official language Portuguese
Government Federal presidential constitutional republic
President Jair Bolsonaro
Vice President Hamilton Mourão
Independence
Declared 7 September 1822
Recognized 29 August 1825
Republic 15 November 1889
Treaty of Petrópolis 11 November 1903
Current constitution 5 October 1988
Area Total 8,515,767 km2
Water (%) 0.65
Population 2019 estimate 210,147,125
GDP (PPP)
2019 estimate Total $3.524 trillion
Per capita $16,727
GDP (nominal)
2019 estimate Total $1.929 trillion
Per capita $9,159

Religion
Brazil is a religiously diverse country, with a tendency of tolerance and acceptance among
different religions. The Brazilian population is mostly Catholic due to the religious heritage
of the Portuguese. On the part of Africa they obtained religious customs of Afro-Brazilian
towns. At the end of the 19th century, spiritualism began to be spread in Brazil, which today
is the country with the largest number of spiritists in the world. In the last decades the
protestant religion has grown a lot, being thus a quite significant part of the population.
Judaism has 86,825 worshipers, 0.05% of the population, concentrated mainly in the states
of São Paulo and Rio de Janeiro. The number of people who say they do not have a religion
is 7.4%; group surpassed only by Catholics and Protestants.

Economy

Brazil's economy is mainly based on the following sectors: agriculture (first world coffee
producer), mining (precious stones), manufacturing (military, electronic, automobiles,
aircraft) and services (tourism power). Brazil is experiencing spectacular growth over the last
few years. It is a prominent member of emerging countries (BRIC) and the only one in Latin
America. Its Gross Domestic Product has increased by 284% in the period from 2000 to 2011.
After the crisis of 2008, Brazil quickly recovered from the process of stagnation due to
exports and the excellent health of the domestic market. . Another fact to take into account
is the per capita income offered by the World Bank, which in the same period (2000-2011)
was increased by 225%.
Its economy is important in the American and world sphere:
Agriculture: it is the largest coffee producer in the world.
Livestock: it has the first bovine cabin in the world.
Mining: with great production of precious stones.
Industry: producer of raw materials and manufactured products, including military
equipment, televisions, cell phones, computers, automobiles and airplanes.
Armament: currently there is a period of renewal of its air and sea fleet to defend the pre-salt
oil area.

Unemployment
At the end of 2018, 12.2 million Brazilians are unemployed, which represents a fall of 3.9%
compared to the previous quarter and 2.9% in relation to the same period of 2017.
The employed population reached the highest level since 2012 and reached 93.2 million
employees, an increase of 1.2% compared to the volume registered between June and August
of this year and of 1.3% in relation to the same quarter of the previous year.

Culture

Brazil is one of the countries designated as one of the most fun in the world, is that indeed,
it is. If we stop to think about what are the customs and traditions of Brazil, we immediately
think of everything that has to do with dance, music, carnival and sports. Some of the most
representative Brazilian customs are:
Capoeira: Mix different elements of martial arts, dance, sports and body language

Carnaval Río de Janeiro: Carnival is a celebration that is experienced as a national holiday,

in which everyone dances to the rhythm of the Samba groups.
Samba: It has become such an important musical genre in Brazil that it has given rise to many
new ones.
Soccer: It is really a tradition and custom, coincidentally it is the country that has been the
champion of the world more times.

Culture of doing business

Brazil has a culture focused on low prices and, in general, Brazilian businessmen try to find
companies that offer these characteristics. However, in recent years this trend has been
changing, as needs have begun to focus on quality, diversity and novelty that offer quality.
Likewise, it ratifies the need to have an internal commercial partner that has a good
knowledge of the functioning of Brazilian commerce and bureaucratic processes.
One of the most complicated points for the foreign businessman to develop in the Brazilian
market is to understand all the tax and fiscal legislation of the country and the differences
that exist in the 27 states of the Federal District.
ARGENTINA

GENERAL INFORMATION

Argentina is a large South American country with a terrain that includes the Andes
Mountains, glacial lakes and meadows in the Pampas, the traditional grazing land of its
famous cattle. The country is known for dancing and tango music. Its great cosmopolitan
capital, Buenos Aires, is centered on the Plaza de Mayo, surrounded by imposing nineteenth-
century buildings, such as the Casa Rosada, the iconic presidential palace.

With a mainland area of 2,780,400 km2, Argentina is the eighth-largest country in the world,
the fourth largest in the Americas, and the largest Spanish-speaking nation.

Government Federal presidential constitutional republic

President Mauricio Macri

Vice President Gabriela Michetti

Independence

May Revolution 25 May 1810

Declared 9 July 1816

Constitution 1 May 1853

Area Total 2,780,400 km2

Water (%) 1.57

Population 2016 estimate 43,847,430

GDP (PPP)

2019 estimate Total $922 billion

Per capita $20,481

GDP (nominal)

2019 estimate Total $408 billion

 Per capita $9,054

Religion

The Constitution guarantees freedom of religion. Although it enforces neither an official nor
a state faith, it gives Roman Catholicism a preferential status.

At the time of polling Argentines were 76.5% Catholic, 11.3% Agnostics and Atheists, 9%
Evangelical Protestants, 1.2% Jehovah's Witnesses, 0.9% Mormons; while 1.2% followed
other religions, including Islam, Judaism and Buddhism. These figures appear to have
changed quite significantly in recent years. Data recorded in 2017 indicated that Catholics
made up 66% of the population, indicating a drop of 10.5% in nine years, and the non-
religious in the country standing at 21% of the population, indicating an almost doubling over
nine years.

Economy

Argentina is the second largest economy in South America, second only to Brazil. Together
with this, they are the only South American countries to integrate the G-20, which brings
together the largest, richest and most industrialized economies on the planet. Argentina has
great natural resources and benefits from it, has a sector oriented to the exploitation and
agricultural export of advanced technology, great development of its nuclear and satellite
industry, a powerful and diversified industrial base, advanced scientific-technological
development and a highly literate population.
Unemployment

Unemployment in Argentina stood at 9 percent in the third quarter of 2018, which implied a
rise of 0.7 in the comparison with the same period of 2017, which was 8.3 percent.

Culture
Tango is the emblem of the country and its capital and has become a true hallmark of the
Argentine people. It originated and developed especially in Buenos Aires in the late
nineteenth century, and in recent years has been refloated not only as a tourist attraction, but
because its popularity has grown throughout the country. Although his place of birth is
discussed, Carlos Gardel, the world's greatest exponent of tango, lived much of his life in
Buenos Aires.
Soccer is another of the great passions of the Argentines. According to the statistics, nine out
of ten inhabitants declare to be a follower of a team. Many of its stadiums have historical
status for sports fans and are part of the most important tourist circuits in the country. With
two World Cups and 14 Cups of America behind him, his team is one of the most awarded
in the world.
Argentine cuisine is characterized by a star ingredient: meat, especially beef, to the point of
being one of the countries in the world where more meat is consumed. The recipes are
influenced by the Creole, Italian and Spanish cuisines and the signature dish is the parrillada,
which are several pieces of roast meat. All the houses usually have their own broilers to be
able to cook the meat on the grill. Some other typical foods are roast, mate, alfajores,
empanadas, dulce de leche, milanesa, locro and picadas.

Culture of doing business

The hard economic cycles that Argentina has suffered over time, have caused its inhabitants
to have a much more serious and immediate business culture, so that the business vision will
always be in the short or medium term.

In general, local entrepreneurs prefer to invest their own funds because the lines of credit are
very limited or with too high a margin of interest. On the other hand, their perspective in
finding new and better investment and business opportunities means that the willingness to
receive proposals from foreign countries remains open.

Personal relationships are of great value to Argentines, so it is common for them to be

interested in knowing a little more about you, for them to know more about the person gives
them an idea of how they can behave at the business and professional level. That said, you
may need more than one meeting before successfully completing a business.

Keep in mind that courtesy and kindness take great importance in business relationships, try
to raise another topic of conversation other than business to start the meetings.

THEORETICAL FRAMEWORK

The free trade agreement (FTA) It is an agreement whereby two or more countries
comprehensively regulate their commercial relations, in order to increase trade and
investment flows and, in this way, their level of economic and social development . The
FTAs contain rules and procedures to ensure that the flows of goods, services and
investments between the countries that sign such treaties are carried out without unjustified
restrictions and in transparent and predictable conditions.
Colombia has signed free trade agreements with Mexico and all the countries of South
America (except the Guyanas). The four treaties signed by the country are the following:

(i) The commercial component of the Andean Community (CAN), which includes Bolivia,
Colombia, Ecuador, Peru and Venezuela.

(ii) The one signed between Colombia, Venezuela and Mexico (known as G-3).

(iii) The one signed between Colombia and Chile.

(iv) The one subscribed between the member countries of the CAN and those of
MERCOSUR (which includes Argentina, Brazil, Paraguay and Uruguay).

Once the treaties are negotiated and signed by the governments, the texts are submitted to the
congresses of the respective countries for their approval. Once approved, they are ratified
and at that moment they become mandatory for the parties. In the case of Colombia, the
Political Constitution requires an additional requirement, consisting in the previous revision
of the Constitutional Court.

In general, free trade agreements are not subject to termination. That is, they remain in force
until one of the parties proposes to the other its renegotiation or termination. This is done
through a procedure regulated by the same treaty and by international law, which is known
as "denunciation" of the treaty.

The importance of signing free trade agreements is an effective means to provide a stable
environment without barriers to trade and investment and thus ensure access of the country's
products and services to external markets. Being used by national entrepreneurs, allows the
country's economy to grow, increase the commercialization of national products, generate
more employment, modernize the productive apparatus, improve the welfare of the
population and, additionally, promote the creation of new companies by national and foreign
investors.

The potential benefits of signing free trade agreements include:

• An increase in the rate of economic growth and, therefore, in the level of per capita income,
as well as in the level of welfare of the population.

• A significant expansion of exports, particularly of non-traditional exports. An increase in

the competitiveness of our companies, thanks to the availability of raw materials and capital
goods (machinery) at lower costs.

• The creation of jobs derived from greater export activity and increased competitiveness.

• Greater diversification in the sectoral composition of Colombian foreign trade.

Currently, most countries in the world are entering into free trade agreements, opening their
doors to the world market and, in this way, managing to improve the conditions to sell their
products and services to other nations. If any country does not want to do so, it simply loses
comparatively the advantages that are offered among countries that do.

By itself, a free trade agreement is not enough to generate development. Despite its positive
aspects, it also requires the willingness of countries to implement policies that allow security
and stability to the economy and reduce internal economic and social differences. It is
therefore necessary to work to modernize public institutions, reduce insecurity, improve
roads, ports, public services, telecommunications, and tackle problems such as corruption
and failures in justice, among other factors.

Countries often use a wide range of mechanisms to hinder trade from third countries,
including prior licenses, quotas or tariff quotas, technical barriers, sanitary and phytosanitary
barriers, safeguards, among others.

One of the objectives of free trade agreements is precisely to regulate all these mechanisms,
in order to make them transparent and predictable, instead of arbitrary and discriminatory.

Agriculture: As in the rest of goods, its objective is that agricultural products can be sold
abroad without tariffs or administrative obstacles. Additionally, it seeks to correct the
measures that generate "distortions" to the trade of these products, such as agricultural
subsidies. Likewise, it is sought that sanitary measures, related to the prevention and control
of diseases of plants and animals, are applied in a way that does not constitute a means of
discrimination against our exports.

Competition policy: When barriers to entry are removed, incentives may be increased for an
artificial division of markets, or for other anticompetitive international practices, and the
absence of formulas between States that allow investigating and sanctioning anticompetitive
practices that have effects in the free trade area, favoring an annulment or impairment of the
benefits derived from that free trade. Therefore, in an area such as the free trade areas, the
main objective of the competition rules is to prevent the benefits of trade liberalization from
being affected by restrictive practices, thus safeguarding a competitive environment. For this
case, national regulations are not the appropriate solution in all cases, mainly for
jurisdictional reasons of the application of the law, which is why in the Treaties it is necessary
to have mechanisms to prohibit and / or counteract anti-competitive practices that affect the
trade of goods and services between the parties by companies that have market power.

International business has expanded in a very large way in recent years, One of these results
is the adoption of products of all kinds to different world markets.

Mexico during the last decade has opened up to new beneficial trends in which the
importation and exportation of products from many international points that support the
commercial opening that the country enjoys is ruled out.
In our country it is common to be able to find products from all over the world, which means
a strong inflow of foreign currency to the country, which are not always countered by the
exit of Mexican products, that is, by exports.

For these reasons there is an imbalance that s will have to level in the coming years through
new trade openings with countries like Brazil with whom Mexico still lacks a free trade pact
is important to keep in mind that international treaties are much more than agreements of
commercial opening, release of merchandise entry and exit and these go beyond the World
Trade Organization WTO, because they include many issues that are discussed so far, this
indicates that a treaty is much broader in terms of services that includes everything about the
agricultural sector that no country has developed so widely.
Some examples in the treaties

investment

Energy

technology

state and its role

government purchases

Mexico enjoys very important free trade agreements that have served to cope with the high
level of imports from other parts of the world.

One of the most significant examples is the North American Free Trade Agreement (NAFTA)
or North American Free Trade Agreement (NAFTA) where Mexico together with Canada
and the United States of America has agreed on a commercial and specific pact to be able to
exchange products and rid them of tariffs.

Regarding future bilateral treaties, it is important to underline that the government of Mexico
conceived to present new letters that allow trade agreements to have as fundamental tools in
an economic strategy. And so in the export business plan deals directly with these commercial
tools, the next situation is introduced to deal with a bilateral treaty Mexico - Brazil.

There is a possible commercial agreement with Brazil, a country that stands out as a good
competitor and a good ally for commercial strategies when bordering 11 Latin American
borders. With the signing of the agreement both economies will be united and will create a
reinforced commercial activity.

Four years ago the bilateral agreement covered seventy percent of growth compared to
previous years, that is to say, it managed (in round numbers) to complete the figure equivalent
to $ 2,700 million dollars.

In 2001, exports from Mexico to Brazil included more than $ 585 million dollars.

Other diverse factors that were achieved with this agreement were the reciprocal reduction
of import tariffs, levels of 20% and 100% were reached, which is expected to give a strong
impetus to bilateral trade flows in the near future.
Thus the liberation will benefit the commerce of chemical technological products, capital
goods, metallic, photographic mechanics among others.

All the reasons presented highlight the obvious desire that Mexico has to strengthen this
union and thus achieve a better level of exports.

The strategy remains exactly the recipe of the IMF and the World Bank, growing based on
external demand (export) and the boost of foreign investment.

We must look for results, because growth would generate jobs and reduce poverty.

In its effect, the agreement decreed that exports would grow enormously, bringing a huge
amount of foreign investment.

Mexico is one of the largest countries in Latin America, its territory covers more than
1,923,550 km2 and only in the country does the population exceed one hundred million
inhabitants without counting the immigrants who live there.

Its economy is based mainly on the industrial and service sectors.

Canada and the United States of America are members of one of the largest and most
successful and economically most profitable free trade zones on the planet.

NAFTA has been linked to Mexico with two of the largest economies in the world, generating
significant support for its growth and economic development during the last decade.

Mexico sails under the facet of being a major importer and proof of this is its annual sales in
imports and this leads to an active economy.

Export as a daily activity in international trade, gives guidelines to companies can increase
their profits and possibilities with new customers and markets. There are many factors that
show that export serves to give added value to the company through a brand and product.

Technological base in Brazil: The opening of new technologies, directly with the
fundamental support of the government and its financial participation of mobilizing projects
in areas and sectors that they define as strategic.
Technological base in Argentina: It has been defined as a solid country, however given its
terrible economic fall was victim of a poor development in economic, political and
technological fields

The purpose of this project is to know the guidelines, reasons and terms that this export
business plan uses.

LEGAL FRAMEWORK

TECHNICAL BARRIERS TO TRADE

Measures Relating to Normalization

Scope of application and extension of obligations

This chapter applies to measures relating to standardization of each of the Parties, "Sanitary
and Phytosanitary Measures", which may affect, directly or indirectly, the trade of goods or
services between the parties, and the measures of the related Parties. with those measures.
Purchases of the public sector, governing the technical specifications prepared by
government agencies in relation to their production or consumption needs.

Extension of obligations

Each of the parties shall seek, through appropriate measures, to ensure the observance of
those by the state or provincial governments, and by the non-governmental standardization
bodies in their territory.

Confirmation of the Agreement on Technical Barriers to Trade and other treaties

Relationship with other international treaties ", the Parties mutually confirm their existing
rights and obligations with respect to standardization measures in accordance with the GATT
Agreement on Technical Barriers to Trade and all other international treaties, including
environmental treaties and treaties. conservation, of which the Parties are parties.

Main rights and obligations

Right to take measures regarding standardization

Pursuant to this Treaty, each of the Parties may adopt, maintain or apply any measure relating
to standardization, including any measure relating to the safety or protection of human,
animal or plant life or health, of the environment, or of the consumer, as well as any measure
that ensures compliance or application. Such measures include those that prohibit the
importation of goods or the provision of a service by a service provider of another Party that
does not comply with the applicable requirements required by such measures or does not
complete the Party's approval procedures.

Right to set the level of protection

Notwithstanding any other provision of this chapter, each of the Parties may establish the
levels of protection it considers appropriate to achieve its legitimate objectives in terms of
safety or the protection of human, animal or plant life or health, as well as the environment
or consumers.

Non-discriminatory treatment

Regarding its standardization measures, each of the Parties shall grant to suppliers of goods
or service providers of another Party:

- National duty in accordance with Articles 301, "Market Access", or 1202, "Cross-Border
Trade in Services"; and treatment no less favorable than that accorded to similar goods of
any other country or, in similar circumstances, to service providers of any other country.
Unnecessary obstacles

Neither Party may develop, adopt, maintain or apply standardization measures that have the
purpose or effect of creating unnecessary obstacles to trade between the Parties. A measure
will not be considered to create unnecessary obstacles to trade when:

- The demonstrable purpose of the measure is to achieve a legitimate objective.

- The measure does not operate in a manner that excludes goods from another Party that meet
that legitimate objective.

Use of international standards

Each Party shall use, as a basis for its own standardization measures, relevant international
standards or imminent adoption, except when those standards do not constitute an effective
or adequate means to achieve its legitimate objectives, for example, due to fundamental
factors of a climatic, geographical, technological or infrastructure nature or for scientifically
justified reasons or because the level of protection that the Party considers appropriate is not
obtained.

- The standardization measure of a Party that conforms to an international standard will be

presumed.

- Nothing in paragraph 1 shall be construed as preventing a Party, in the pursuit of its

legitimate objectives, from adopting, maintaining or applying any standardization measure
that results in a higher level of protection than that it would have been obtained if the m
Compatibility and equivalence

- Recognizing the central role that standardization measures play in achieving legitimate
objectives, the Parties will work jointly, in accordance with this chapter, to strengthen the
level of safety and protection of human or animal life or health or vegetable, environmental
and consumer.
- The Parties shall make compatible, to the greatest extent possible, their respective measures
relating to standardization, without reducing the level of safety or protection of human,
animal or plant life or health, the environment or consumers, without prejudice of the rights
conferred by this chapter on any Party and taking into account international standardization
activities, in order to facilitate the trade of a good or service between the Parties.

- One party shall endeavor, by appropriate measures, to promote the compatibility of a

specific standard or conformity assessment procedure existing in its territory with the
standards or conformity assessment procedures that exist in the territory of the other Party.

- Each importing Party shall provide a technical regulation that adopts or maintains an
exporting Party equivalent to that which it would give to its own when, in cooperation with
the importing Party, the exporting Party demonstrates to the satisfaction of the importing
Party that its technical regulation complies adequate with the legitimate objectives of the
importing Party.

- At the request of the exporting Party, the importing Party will communicate in writing the
reasons for not dealing with a technical regulation.

- To the extent possible, each Party will accept the results of the conformity assessment
procedures carried out in the territory of another Party, provided that they offer a satisfactory
guarantee, equivalent to that provided by the procedures The accepting Party carries out or
is carried out in its territory and whose result it accepts, that the relevant good or service
complies with the technical regulation or with the applicable norm adopted or maintained in
the territory of that Party.

- Prior to the acceptance of the results of a conformity assessment procedure in accordance

with the provisions of paragraph 6, and in order to strengthen the sustained reliability of the
results of the conformity assessment of each of them, Parties may consult on matters such as
the technical capacity of the relevant conformity assessment bodies, including on verified
compliance with relevant international standards through such means as accreditation.

Risk assessment

- In the pursuit of their legitimate objectives, each of the Parties may carry out risk
assessments. When carrying out the evaluation, a Party may take into account, among other
factors related to a good or service:

- the scientific evidence or technical information available;

- the intended end use;
- the processes or methods of production, operation, inspection, sampling or testing; or
- the environmental conditions.
- When one of the Parties, in accordance with the provisions of Article 904 (2), establishes a
level of protection it deems appropriate and carries out a risk assessment, it must avoid
arbitrary or unjustifiable distinctions between similar goods and services at the level of
protection considered appropriate, if such distinctions to have the effect of arbitrary or
unjustifiable discrimination against goods or service providers of another of the Parties;
they constitute a disguised restriction on trade between the Parties.easure was based on a
relevant international standard.
Conformity assessment

- In addition to the provisions of Article 906, and recognizing the existence of substantial
differences in the structure, organization and operation of conformity assessment procedures
in their respective territories, the Parties will make such procedures compatible, to the
greatest extent possible.

- In recognition that this should be to the mutual benefit of the Parties involved, and except
as provided in Annex 908.2, each of the Parties shall accredit, approve, grant licenses or
otherwise recognize the conformity assessment bodies in the territory of another Party, under
conditions no less favorable than those granted to those organizations in its territory.
- Each of the Parties shall apply the relevant provisions of paragraph 3 to its approval
procedures, with the necessary modifications.

- At the request of another Party, each of the Parties shall adopt reasonable measures within
its scope to facilitate access to its territory, when it intends to carry out conformity assessment
activities.

- Each Party shall consider favorably the request of another Party to negotiate agreements on
the mutual recognition of the results of the conformity assessment procedures of that other
Party.

Notification, publication and supply of information

- In addition to the provisions of Articles 1802, "Publication", and 1803, "Notification and
supply of information", when proposing the adoption or modification of any technical
regulation, each of the Parties:

a. at least sixty days in advance of the adoption or modification of the measure, which does
not have the character of law, shall publish a notice and notify the other Parties in writing of
the proposed measure, so as to allow interested persons to become familiar with it. , except
in the case of any measure relating to normalization related to perishable goods, in which
case the Party, to the best possible extent, shall publish the notice and shall notify at least
thirty days in advance of the adoption or amendment of the measure. , but not after national
producers are notified;

b. identify in the notice and notification, the good or service to which the proposed measure
would apply, and include a brief description of the purpose and the reasons for the action;
c. provide a copy of the proposed measure to any Party or interested person that so requests
and, where possible, identify those provisions that depart substantially from the relevant
international standards;

d. without discrimination, it will allow other Parties and interested persons to make written
comments and, upon request, will discuss and take into account the observations, as well as
the results of the discussions.

- When there is no relevant international standard for the proposed measure, or such measure
is not substantially the same as an international standard, and when the measure could have
a significant effect on the trade of the other Parties, each of the Parties that is propose to
adopt or amend a standard or any conformity assessment procedure that is not considered a
technical regulation shall:

- Regarding the technical regulations of the state or provincial governments, but not local
governments, each of the Parties will seek, through appropriate measures, to ensure:

- When a Party considers it necessary to address an urgent problem related to safety or to the
protection of human, animal or plant life, or health, of the environment or of consumers, it
may omit any of the steps established in the paragraphs 1 or 3, provided that when adopting
the standardization measure:

- Each of the Parties will allow a reasonable period to elapse between the publication of the
standardization measure and the date on which it enters into force, so that there is a time
when interested persons adapt to such measure, except when necessary deal with one of the
urgent problems.

- When a Party allows persons in its territory who are not part of the government to be present
during the process of elaborating the measures relating to normalization, it must also allow
persons from the territories of the other Parties that do not belong to the government to be
present.
- Each of the Parties shall notify the other Parties of the preparation or modification of their
standardization measures, as well as any change in their application, at the latest when
notifying persons not belonging to the government in general, or to the relevant sector in his
territory.

- Each Party shall ensure that state or provincial governments and non-governmental
standardization bodies in their territory comply with paragraphs 6 and 7 through the
appropriate measures.

- Each of the Parties shall designate, as of January 1, 1994, a governmental authority at the
federal level, responsible for implementing the notification provisions of this article, and
shall notify this designation to the other Parties. When a Party designates two or more
governmental authorities for this purpose, it must inform the other Parties, unambiguously
and completely, about the scope of responsibilities of those authorities.
scope of responsibilities of those authorities.

Information centers

1. Each Party shall ensure that there is an information center capable of answering all
reasonable questions and requests of the other Parties and interested persons, as well as to
provide relevant documentation in relation to:

a. any proposed standardization measure adopted or maintained in its territory at the

federal, state or provincial government level;

b. b. the membership and participation of that Party, or its competent authorities at the
federal, state or provincial level, in international and regional standardization bodies
and conformity assessment systems, and in bilateral and multilateral agreements on
measures relating to standardization, as well as the provisions of such systems and
arrangements;
 c. the location of notices published in accordance with Article 909, or the place where
such information may be obtained;

d. the risk assessment processes of the party, the factors that it takes into consideration
when carrying out the evaluation, and for the establishment.

2. When a Party designates more than one information center:

a. inform the other Parties, unambiguously and completely, about the scope of
responsibilities of each of said centers;

b. will make sure that any request sent to the wrong information center is sent, in an
expeditious manner, to the information center that corresponds to it.

Technical cooperation

1. At the request of another Party, each of the Parties:

a. provide that Party with technical advice, information and assistance in mutually
agreed terms and conditions, to strengthen the measures related to standardization of
that Party, as well as its activities, processes and systems on the matter;

b. provide that Party with information on its technical cooperation programs related to
measures related to standardization on areas of particular interest.

c. consult with that Party during the development of any measure relating to
standardization, or before its adoption or a change in its application.
 2. Each Party shall encourage standardization bodies in its territory to cooperate with
those of the other Parties in its territories, as appropriate, in standardization activities;
for example, through memberships in international standards organizations.

Limitations on the supply of information

Nothing in this chapter shall be construed as an obligation of a Party of:

a. Communicate, publish texts or deliver detailed information or copies of

documents in another language that is not the official language of the Party;
or

b. provide any information whose dissemination will impede compliance with

the laws, or that is otherwise contrary to the public interest or harmful to the
legitimate commercial interests of certain companies.
CONCEPTUAL FRAMEWORK
RESULT OF THE INVESTIGATION

In conclusion it can be determined that the AMERICAN FREE TRADE AGREEMENT

(AFTA) is a trade agreement of the region in which its participating countries have benefited
greatly, to create a free trade zone with a reduced cost for the exchange of goods.
The restrictions of several products, the measures related to the protection of workers and the
environment are described.
Taking into account the research carried out, we can conclude the following points:

• For Colombia it is of vital importance to have such commercial agreements.

• Higher investment flows and trade exploit comparative advantage in labor-intensive

processes.

• Expands trade and promotes efficiency, the real income of the population increases. If this
is dynamic, the benefit will be achieved through higher rates of economic growth than
reducing poverty by generating an ascending per capita income.

• Exports and imports become the strongest sector for the countries.

• Reduce tariffs to zero in a series of specified steps.

• Imposes the right of establishment and national treatment for services.

• It greatly liberalizes the flow of investments.

• Gives members access to government procurement.

• Proving temporary access for business professionals and technicians who, before, were
always bothered with borders.
• Severely limit the use of national security standards to reduce trade.

• Eliminates several rules such as the use of terms to restrict trade and limitations for the use
of others, such as the actions of escape clauses to introduce an effective solution to conflicts
that has been its capacity to increase equity in the Application of laws on compensation and
anti-dumping duties.
RESULT OF THE INVESTIGATION – Lizeth Ruiz

It is a very important step that must be taken for Colombia to adapt to the accelerated rhythm
of the new world, especially in the globalization, otherwise other countries will come and
also produce and export the same as we do, and we " they will steal "the market, condemning
us to underdevelopment.

We will have benefits such as the following:

• Greater access of the Colombian productive apparatus to the acquisition of capital goods,
mainly machinery and equipment imported from the United States, by the immediate
elimination of the vast majority of tariffs (between 5% and 20%). The effect will be an
increase in competitiveness for the entire national productive apparatus, both industrial and
agricultural, and a special benefit for SMEs.

• To the extent that it can improve the demand of a good on the part of the associated
countries, the production increases, not only of the final goods but also of the industries
supplying raw materials and inputs, improving the quality and competitiveness of the goods

• When talking about free trade, it is possible to contemplate the existence of advantages in
front of some markets, but there are countries that can surpass by yields or costs, it is these
advantages that force the improvement of productive processes permanently, so that today
markets are dynamic and evolve very quickly.
11. REFERENCES

- Diana Patricia Malagón Herrera, COLOMBIA Y LOS PROCESOS DE INTEGRACIÓN

ECONÓMICA, UMNG 2013.

- Webcindario.com, Unasur, Unión de Naciones Suramericanas

- Economía del Caribe, Revista de economía de la Universidad del Norte, Barranquilla

2013.

- ¿NAFTA A la vista? , Revista Dinero, 2000.

- Tratado de Libre Comercio de América del Norte, Wikipedia, Septiembre 2014.

- El NAFTA y el TLC, www.tlc.gov.co.

- Tratado de Libre Comercio de América del Norte (TLCAN), www.sice.oas.org.

- Acuerdos comerciales en vigor, www.sice.oas.org.

- COMITÉ DE REDACCIÓN. Los negocios del TLC. En: Pubicación mensual, DINERO No.
194 (Nov 14, 2003).

- VARGAS ALVARADO, Germán. Profesional de la DES de la contraloría Delegada para

Infraestructura. Economía Colombiana. Revista de la Contraloría General de la
República. No. 299. Noviembre de 2003. P. 53

- Las 100 preguntas del TLC. Ministerio de Comercio, Industria y Turismo. Colombia. P
31

- TRADE AND INTEGRATION AGREEMENTS BETWEEN US AND LATIN AMERICA (Cartilla

semana 5 Poitecnico Gran Colombiano.)