The Free Trade Between Colombia And The United States

The Free Trade Between Colombia and The United States
It is really sad that the first thought people have about Colombia is about drugs. For years the country has been known for cartels and drugs production and sometimes for its coffee. I believe that this thoughts can change when they know what other products Colombia produces, and this will happen due to the United States-Colombia free trade.This is the first stage to inform people about the different products that Colombia produces. The United States- Colombia Free Trade Agreement is a bilateral free trade agreement between Colombia and United States. The Free Trade Agreement eliminates tariffs, import quotas and preferences on most goods and services traded between them. It can be considered an open border and a second stage ofeconomic integration. Also The Free Trade Agreement between Colombia and United States gives protection of their primary production and makes stronger economic factors in each country. This agreement has been discussed for several years but 2006 is when both governments started a dialogue to try to agree on the conditions of both parties. Since then both parties has been conducting meetings todiscuss and agree on changes in the positions presented at the beginning. After more than five years of dialogues, the countries signed the free trade agreement and the two nations were allowed to import and export their products easier and there is now an easier exchange between countries.
The Free Trade Agreement can change the Colombian economy because it brings many benefits, but at the same timeif the country and its population is not willing to face a change, the benefits can turn into disadvantages for the country. The Free Trade Agreement brings cons and pros to the two countries, but I believe Colombia will be more affected positively and negatively than United States. Colombia is a smaller country and economically less stable than United States. The Free Trade Agreement will affectColombia more and it can bring benefits and disadvantages to Colombia. I think in order to improve the economy of Colombia they have to sacrificed and risk some things; therefore, there will be some losses and dramatic changes due to the Free trade Agreement. "Luis Carlos Villegas hopes the FTA will put pressure on Colombia to quickly improve its infrastructure" (FTA Boosts Business, 2011).Companies and entrepreneurs need to be ready for the change and the for the competitors. The benefits that Colombia gets due to this trade can be many and on the other hand the country can get damaged. But Colombia can change or manage those changes in the best way.
The Free Trade can help Colombian economy grow. Having a free trade will help expand small and big companies, giving them theopportunity to offer their products and services in markets where they never were able to get into, like the international market. "This landmark agreement opens the door to new business opportunities, economic growth". (Donohue, 2005) This makes the companies get new customers and their sellers will increase. If the customers are satisfied with the products and services they get, they will say goodthings about the companies and this will help them have a better reputation between the market. Word of mouth is one of the biggest and most reliable sources that customers use to promote a product or service. If the company has a good reputation, then customers will be interested and this will cause an increase for the sellers.
The companies will be able to sell their products and services underbetter conditions because they will export them without paying export tariffs or taxes. This help the prices to be more accessible for the customers and having better prices can generates a better demand of them. The companies save money because they do not have to pay export tariffs and this leads to the earnings and profits of the companies going up. This make the companies to grow economically...