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EVIDENCE 14:

THE PERFORMANCE OF COLOMBIA IN IMPORT AND EXPORT

PRESENTED BY:

JAVIER AVELLA

PRESENTED TO:

JOHAN OSPINA

NATIONAL LEARNING SERVICE SENA


VIRTUAL TITLE TRAINING
TECHNOLOGIST IN INTERNATIONAL NEGOTIATION
BOGOTA
2017
Evidence 14: Colombias performance in importation and exportation

1. Make a comparative chart in English of the Colombian performance in


importation and exportation, before and after signing the FTA with the USA.
CUADRO 2
COLOMBIA: INDICADORES MACROECONMICOS
AO 1990 1995 2000 2005 2010 2013 2014*
PIB (%) 3,4 2,67 2,18 4,7 4 4,3 4.4
TASA DE DESEMPLEO (%) 10,5 7,9 16,7 11,8 11,8 9,64 8,1
TASA DE INFLACIN (%) 32,37 19,47 8,75 4,85 3,17 1,94 3
BALANZA COMERCIAL (Millones de dlares FOB) 1616,3 -2751,3 2160,5 1391 2239 2199,8 2100
*Proyeccin
Fuente: Banco de la Republica, DNP, CEPAL, varios informes

COLOMBIA: MACROECONOMIC INDICATORS

35%

30%

PIB (%)

20%

CUP OF

UNEMPLOYM
15% ENT (%)

TASA DE
INFLACIN
(%)
5%

1990 1995 2000 2005 2010 2013 2014*

AO
TRADE BALANCE (Millions of dollars FOB)
USD 3.000

USD 2.000

USD 1.000

USD 0 TRADE
BALANCE

-USD 2.000

-USD 3.000

-USD 4.000
1990 1995 2000 2005 2010 2013 2014*

PERCENTAGE VARIATION OF GDP

8%

7%

PERCENTAGE
VARIATION OF
GDP
4%

3%

2%

YEAR
2. Consider the duty rates and exportation costs by analyzing if those have
presented any increase, decrease or disappearance after the FTA came into
force.

3. After doing this analysis, make a projection chart of what you think it will
happen with exportations in Colombia in the next years.

The comments on international trade through history allow us to understand


why the decision made by former President Csar Gaviria when he opted for
the Opening Policy. History has shown that the economies that have remained
closed in the trade have been delayed in their productive processes, in the
growth of the macroeconomic variables for which they result a low quality of life
for the population of that country.

The concept of comparative advantage proposed by the classical economist


David Ricardo is the beginning of foreign trade. By eliminating the barriers to
trade in the Colombian market, foreign products of better quality and cheaper,
changing the relationship between production and demand that for several
decades had made the country causing large losses to the domestic industry,
specifically to companies that were not Ready for competition. However, for
consumers who did not see their income affected at this time the opening meant
more variety of products at lower prices and better quality, ie a better and
greater supply.

The Colombian economy during the 90s shows a favorable behavior in its
macroeconomic variables, which allows to induce that the implementation of
this economic model favored the national economy to bring to society a greater
welfare. The fact that in some moments of this decade has been presented in
some of the variables, is due in principle to the interdependence that is created
between the countries in the end with the barriers of international trade, that is
to say, that when the Models are open, countries are increasingly related to
each other and any inconvenience that suffer an international level can be felt in
economies such as Colombia, something that was lived during that time and is
currently still living.

In the first decade of the 21st century, after 10 years of economic opening,
some protectionist measures have been introduced in the form of tariffs, by-
products sectors, or other restrictions, and the ultimate goal is to achieve an
integrated global economy In its whole. To achieve this goal the most used is
the creation of selected blocks of trade between countries. In recent times
Colombia has tried to establish trade agreements with strategic countries of
economy that allow our own growth of our country through foreign trade.

That is why the implementation of the FTA with the United States is one of the
most important and expected for the Colombian economy that in the short term
that is in operation shows that the macroeconomic variables has not presented
important changes but that the study is By Sectors are the most specific results
on the benefits that have been obtained or that, on the contrary, certain sectors
that are affected.

Some benefits that can be mentioned so far from the implementation of the FTA
have been to allow companies and some sectors of the economy to become
more efficient in order to face competition and avoid closing them. Difficult to re-
generate enterprise; That is why another benefit is the fact that it has increased
the demand for skilled labor for what has led to what human talent is trained. At
the same time, they allow companies to increase their exports and generate
jobs for both skilled and unskilled labor. Although it is still too early to see how
the Colombian economy has changed, if it can be said that the implementation
of the FTA has made the country more competitive, more open to the world,
with a more mature and productive sector. Better conditions to attract
productive investments and conquer foreign markets.

The FTA with the United States of guaranteeing a total and permanent
reduction of the voyages to Colombian goods exported to that country, while the
United States makes an immediate reduction for 82% of its products exported to
Colombia), Mainly In capital goods and goods not produced in the country. The
agricultural sector is one of the most worrisome to the Colombians for the
effects that could bring, however, besides facilitating the entry of our products to
the American market, self-destruct skills in the acquisition in sanitary and
phytosanitary subjects to support the Real access For our agricultural and
agroindustrial production, in addition to the government established protection
mechanisms such as automatic safeguards, extended periods of tariff reduction,
the establishment of tariff quotas and grace periods to avoid large and strong
damage to certain seconds

To do this evidence, read the following supplementary material:

The U.S.-Colombia Free Trade Agreement: Background and Issues.


Compliance Guidelines: How to Develop an Effective Export
Management and Compliance Program and Manual.
Taxation and Investment in Colombia 2011 Reach.
A U.S.-Colombia Free Trade Agreement: Strengthening Democracy
and Progress in Latin America.

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