Is the Free Trade Agreement a good option for Colombia?
The Free Trade Agreement (FTA) was signed on February 26/2006 in Colombia, with Countries such as Peru, Ecuador and USA. “Is an arrangement which establishes unimpeded exchange and flow of goods and services between trading partners regardless of national borders”[1]. The FTA looks for the creation of a free commercial zone between the countries that are inside the trade. For that reason the Free Trade Agreement should be the option of the development of Colombia.
First of all the FTA helps to the development of Colombian economy, bringing new jobs, because Colombia takes opportunities created by the opening. Furthermore the Colombian companies takes technology and modernization processes, altering the productivity, changing the functions of demand for jobs and the composition of those functions, in terms of the degree of qualification of work. In consequence, the international companies will invest in Colombian ones, helping its growth. It is the case of Crepes and waffles, which takes technology and new processes creating a lot of jobs that need for the competitiveness and productivity, giving opportunities for the Colombian mothers. Moreover the increase of exports is a benefit for Colombia, because the trade permits exports duty-free, and it will be easy to send products towards USA, arriving with goods and services to a national largest market, creating greater opportunities for domestic economic agents. Clearly, the national market is not sufficient to drive the growth of the country and accordingly we must looks for markets abroad; the exports to the countries that are inside the trade, of products such as fruits, vegetables and flowers without paying a weight to them is a benefit to the economy with the entrance of large amounts of money and attracting foreigners to invest in national companies of flowers, fruits and vegetables.
In addition Colombia with the support of USA, try to control the terrorism and guerrilla, creating groups for the save of lives of the people. With the trade Colombia maintain its good relations with the USA that gives to Colombia arms and supplies to fight against these armed groups, a sample of this security increase is that Colombian government is continuing to battle narcotics trafficking, which provides the funding base for illegal armed groups. These efforts took 500 metric tons of cocaine off the market in 2006 alone, depriving terrorist groups of $850 million in funds to buy arms and mount attacks. In addition, the Colombian government has extradited over 450 narcotics traffickers and terrorists to the United States over the past five year.
On the other hand some people think that the FTA is not a good way for the development of the Country, because Colombia is not able to compete with USA a development country and the future we remain in the hands of this country, being disadvantage for the economy of the country, because Colombia is an underdeveloped country with little infrastructure, that has to be able to control, such as routes to transport products, ports, machinery, bridges, railways, warehouses, plant capacity of enterprises and others, needed to compete with the United States. After all the small companies that are the second sector of the economy, are affected because the low productivity and quality and high cost of production that characterized, preventing them from competing in a highly specialized market, leading the small companies to its disappearance, which is very dangerous, as they generate more than 80% employment in the country. Also the Colombia’s population employed in agriculture could be displaced by competition with USA imports and some may turn to coca production or affiliate with armed groups rather than migrate, it is the case of the increased militarization in the rural areas to eradicate drug trafficking and that has already led to massive displacement and the violation of the human rights of indigenous, Afro-Colombian, and communities.
In conclusion, Colombia is an underdeveloped country that needs a solution for this situation, changing its systems, processes, technology and relation with other countries, and the FTA brings new Jobs for Colombian people, security, competitiveness and productivity, also increase the exports, open the market of Colombia to more import competition, encouraging more foreign investment, and strengthening its ties to the world’s largest economy.” It is about being a reliable partner in turbulent times. It is also about building long-lasting institutions for economic prosperity and democracy for millions of Colombians.”[2]Absolutely I think that the FTA should be the option of the development of Colombia.
The Free Trade Agreement (FTA) was signed on February 26/2006 in Colombia, with Countries such as Peru, Ecuador and USA. “Is an arrangement which establishes unimpeded exchange and flow of goods and services between trading partners regardless of national borders”[1]. The FTA looks for the creation of a free commercial zone between the countries that are inside the trade. For that reason the Free Trade Agreement should be the option of the development of Colombia.
First of all the FTA helps to the development of Colombian economy, bringing new jobs, because Colombia takes opportunities created by the opening. Furthermore the Colombian companies takes technology and modernization processes, altering the productivity, changing the functions of demand for jobs and the composition of those functions, in terms of the degree of qualification of work. In consequence, the international companies will invest in Colombian ones, helping its growth. It is the case of Crepes and waffles, which takes technology and new processes creating a lot of jobs that need for the competitiveness and productivity, giving opportunities for the Colombian mothers. Moreover the increase of exports is a benefit for Colombia, because the trade permits exports duty-free, and it will be easy to send products towards USA, arriving with goods and services to a national largest market, creating greater opportunities for domestic economic agents. Clearly, the national market is not sufficient to drive the growth of the country and accordingly we must looks for markets abroad; the exports to the countries that are inside the trade, of products such as fruits, vegetables and flowers without paying a weight to them is a benefit to the economy with the entrance of large amounts of money and attracting foreigners to invest in national companies of flowers, fruits and vegetables.
In addition Colombia with the support of USA, try to control the terrorism and guerrilla, creating groups for the save of lives of the people. With the trade Colombia maintain its good relations with the USA that gives to Colombia arms and supplies to fight against these armed groups, a sample of this security increase is that Colombian government is continuing to battle narcotics trafficking, which provides the funding base for illegal armed groups. These efforts took 500 metric tons of cocaine off the market in 2006 alone, depriving terrorist groups of $850 million in funds to buy arms and mount attacks. In addition, the Colombian government has extradited over 450 narcotics traffickers and terrorists to the United States over the past five year.
On the other hand some people think that the FTA is not a good way for the development of the Country, because Colombia is not able to compete with USA a development country and the future we remain in the hands of this country, being disadvantage for the economy of the country, because Colombia is an underdeveloped country with little infrastructure, that has to be able to control, such as routes to transport products, ports, machinery, bridges, railways, warehouses, plant capacity of enterprises and others, needed to compete with the United States. After all the small companies that are the second sector of the economy, are affected because the low productivity and quality and high cost of production that characterized, preventing them from competing in a highly specialized market, leading the small companies to its disappearance, which is very dangerous, as they generate more than 80% employment in the country. Also the Colombia’s population employed in agriculture could be displaced by competition with USA imports and some may turn to coca production or affiliate with armed groups rather than migrate, it is the case of the increased militarization in the rural areas to eradicate drug trafficking and that has already led to massive displacement and the violation of the human rights of indigenous, Afro-Colombian, and communities.
In conclusion, Colombia is an underdeveloped country that needs a solution for this situation, changing its systems, processes, technology and relation with other countries, and the FTA brings new Jobs for Colombian people, security, competitiveness and productivity, also increase the exports, open the market of Colombia to more import competition, encouraging more foreign investment, and strengthening its ties to the world’s largest economy.” It is about being a reliable partner in turbulent times. It is also about building long-lasting institutions for economic prosperity and democracy for millions of Colombians.”[2]Absolutely I think that the FTA should be the option of the development of Colombia.
[1] International developments.ir.uz.ac.zw:8080/.../361/1/Nicholson-ZULC-Conf-International-developments-in-IP-+Zimbabwe-April-2006.ppt
[2] Free Trade Agreement between USA and Colombia. http//FTA-USA-Col.benefits_consec.html
