First of all, I want to show the panorama of Colombia and what its conditions are economically talking. And why those conditions seem to be attractive to other markets not only when do business but also establish its branches in Colombia. In addition, I want to refer how the current crisis of Europe and bad situation in USAaffects or helps to the emergent economies like the Colombian one. I want to do a summary of which ones could be the positive effects of the FTA in the different economic sectors in Colombia as negatives. Later I want to show my opinion about the FTA even though it doesn’t change anything because Colombia already signs this agreement and the only thing that we can do is to wait and hope that itwon’t be as terrible as some experts said.
Since the first fact to talk about a Free Trade Agreement with any country guarantees the life conditions of the labor forces and generally all the capability in terms of health, education, labor benefits, but here in Colombia most of the population has a really low life style; labor is poorly qualified and level of study often doesn’t reach the highschool, this facts show us the conditions of life in Colombia. If we see the conditions in the economic sectors like industry, agriculture, textile, mining etc. And see what products Colombia exports; we can see that almost all of them are raw materials to be treated in other countries because Colombia doesn’t have the Infrastructure and technology to produce its own products and new technologies.These facts make Colombia a weak economy; so, if Colombia wants to increase its market and improve its technology, It has to depend on the biggest markets to import processed products and high tech gadgets. That’s how the biggest markets exploit these weaknesses to impose lower wages and living conditions decadent and the population has no more options than work in that conditions.
There is anotherfact that makes Colombia an easy target to those companies and obviously it is the amazing quality and amount of resources that Colombia has. That’s why now Colombia and in general all the countries in Latin America are so desired to do business and sign trades with the USA and Europe. I guess that another fact that makes the things easier for the international companies is that our politicianssold themselves to the highest bidder and facilitate the paperwork and taxes. But, why a couple of years ago those countries didn’t even care and underestimated us? Maybe, they thought that nothing could happen in their economies, they believed strong and indestructible, but their system collapse, they don’t have jobs, immigrates also are a real problem to them in countries like Spain or France.Now they need of our resources and our potential to grow like emergent economies.
If is true that no one knows exactly what’s going to happen with the FTA with USA, is obviously that some economic sectors going to be more affected that others. Let’s start softly with the more benefit sectors according to ProExport which are: the floriculture sector, clothing, snuff, cocoa, plastics and leather,easily to know because the taxes will be lower or maybe we won’t have taxes to pay. But, is this sustainable making a comparison with the affected sectors and the losses that they will have because of the FTA? In my opinion this isn’t sustainable because our market going to lose a lot of jobs in the little markets that aren’t strong enough to survive in that big market that comes soon. Sectorsaffected include rice, wheat, corn, sugar, poultry, cattle and pig farming. In some of this cases the problem is that they going to win less money and will have more competition than before, what makes that our infrastructure lose the fight against the huge industry infrastructure of the USA and at the end destroy our little industry.
Making a comparison or seeing an example with others FTA that...