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Colombian Trade Treaty - Essay Example

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Colombian trade treaty or U.S.-Colombia Free Trade Agreement that was signed in 2006 aims at eliminating duties by 80% of the total number of exports. This refers to United States of America exports that are both industrial and agricultural to Colombia. Also, other tariffs are…
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Colombian Trade Treaty
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Colombian Trade Treaty

Download file to see previous pages... Moreover, the market will also be expanded and consequently will competitiveness in general U.S businesses due to the large market created. Considering the fact that the United States account for most of the imports that Colombia receives, elimination of tariffs and other barriers to U.S exports will be advantageous to the U.S. because there will be less spending in regard to customs duty. The U.S. shall also in be a position to increase the number of goods it exports that will have a significant increase in the American jobs created. This is because increase in jobs will be as a result of increased market and increased demand for goods (“Benefits of the U.S.-Colombia Trade Promotion Agreement” 1).
Furthermore, American investors will have an opportunity to be protected from unfair practices and treatment in Colombia. This means that, American investors will have an open and level field to conduct their business, and also have a neutral means to settle any disputes that occur as a result of investing. In addition, those (American investors) taking part in procurement business have a guarantee to be treated fairly and in a nondiscriminatory manner when it comes to providing services and products to government agencies and public service (‘Benefits of the U.S.-Colombia Trade Promotion Agreement” 3). As a result of having a free trade agreement, the long term economic benefits towards the U.S. will be in excesses because trade between Colombia and itself accounts for less than 1% of the total trade. Thus, scraping tariffs for imports from Colombia will be more of a way to find market for its surplus and financial benefits.
Colombia stands to lose a lot despite the other gains made from the trade agreement. The agreement sets an unfair trade relationship with its basis on rules undermining the wellbeing of its people. This is because farmers remain worried that they will be driven out of business and more into poverty, due to imports of cheap goods ...Download file to see next pagesRead More
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