Importance of the Free Trade Agreement

Free trade agreements are important because they constitute an effective means to ensure the access of products to external markets, an easier way and without barriers. It is an agreement by which two or more countries regulate in a tolerant way its commercial relations, with the purpose of increasing the flow of trade and investment, in order to generate a higher level of economic and social development. In addition, they allow increasing the marketing of national products, generates more employment, modernist production system, improve the well-being of the population and promotes the creation of new companies by domestic and foreign investors. But trade serves to lower the prices that consumers pay for products which are not produced in the country. Free trade agreements are not all equal. They vary in their coverage and depth. However, not all cover the same topics and the level of commitments made by the parties, the countries that sign in the topics covered is not always the same. Minimum, free trade agreements should contain rules and procedures with regard to most of the goods that can be traded between the parties (Hill p180)

The Treaty free trade agreement (FTA) between Colombia and United States. Approved on 10 October 2011 by the Congress of the United States and in effect since May 15, 2012. This has different purposes which in a way conducive to the two countries. The United States-Colombia free trade agreement is an agreement of Held commercial promotion aiming to expand domestic markets and promote the export of goods, services and capital, stimulating private long-term investments. The Treaty is based on a set of principles of international law of integration that tended by the Elimination of the discrimination against products, services and foreign capital, principles such as the national treatment (equality between foreigners and national capitals, services and products) and the minimum level of treatment (fair and equitable treatment that offers full overseas protection and security).

In short the importance of this Treaty for Colombia is

Market expansion: is a priority to strengthen the access of our exports with greater value added to markets, such as the countries of the EFTA, which are characterized by their high purchasing power for the Colombian Government.

Expansion and diversification of investment: is of great interest for our country to promote the expansion and diversification of the investments of the Member countries of EFTA in Colombia.

Strengthening and expansion of ties of integration with European countries: Colombia and the EFTA Member States share a strong interest in strengthening economic ties, cooperation and investment. This step will allow future materialize similar initiatives with other countries of the European continent

Allow Colombian entrepreneurs place their products in permanent preferential conditions in the world's largest market: United States. It is about 314 million consumers, a domestic product exceeding USD 15 billion, and a per capita GDP of USD $49.802. (2012 data) also because United States. It is the main commercial partner of Colombia and the increase of bilateral trade will generate more jobs and higher incomes.

In Colombia the first sector will be affected is the agricultural sector, since the Colombian countryside is fully industrialized to compete against agricultural products from the United States, nor has sufficient mechanisms of production and quality. Colombian farmers nor has sufficient educational capacity to respond to the demands that proposes them. Also Colombia is at a complete disadvantage with the camp American, since it has in its favor purely protectionist policies in its different economic sectors; It generates lower costs to producers and thus a greater threat to our farmers.

The sector of small and medium-sized enterprises, the second sector, that this affected transcends affected due to low productivity, low quality and high costs of production that characterizes them, preventing them from competing in a highly specialized market, taking them therefore to its imminent demise, which is very dangerous, since they generate more than 80% of employment in the country.

What is serious is that Colombia does not have a protectionist policy, which clearly affects especially the peasants, causing unemployment in the field. Neither has a vision of the disasters that can be internally generated and how to fix them, when the FTA is implemented: the unemployment generated by the disappearance of the small farmers, the total lack of the State towards the peasants, the massive displacement of peasants or affected population, looking for work or better opportunities in cities, since in rural areas not obtained

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