Fta Between Colombia and Usa

In: Business and Management

Submitted By angeserrano
Words 1032
Pages 5
Many people think that the Free trade agreement between Colombia and United States is not a good option to our producers because we are not ready to open our market, but we are in a globalized world and if Colombia hadn´t approved this agreement, we would have been producing in the same way without thinking to improve our methods and how to be more competitive. This agreement was negotiated in 2006 and on May of this year, the agreement came into force. An FTA “is a trade agreement between certain countries granting their members an exclusive favor and is a common type of regional trade agreements.” This sort of agreement is very important for countries to attract foreign investment and to improve the economic growth. Even though it is not easy for developing countries as Colombia, these regional trade agreements are expanding now a days, and they have more advantages than disadvantages for this countries.
Advantages that allow Colombia to grow
In the first place, An FTA does not required constant changes, which makes it a stable and predictable instrument with clear rules to both countries involved in the agreement. As well as this, when Colombia accepted this negotiation, a lot of studies about positive changes because of the agreement were made, and the results were a possible economic growth, increasing exports and creation of both qualified and no qualified employment. In fact, 4 years later “Colombia is a more competitive country, which is open to the world, with a mature productive sector and with better conditions to attract investment and to capture international markets.” What is more, The United States is the main place where our exports are going to, having a 42% of participation of the total of it, all of this doing without any agreement.

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