Interview

Some Proposals

• Investment and research in agricultural policies.
• Evaluate the  production food  chain in order to decrease the number of intermediaries
• Increase the national budget to agriculture
• Strengthen comercial relations with Mercosur or markets in South America,  as  Brazil, Argentina, Chile and Venezuela. We can not depend of united states economically.
• Restrict the importation of some products.
  
  
  

Barriers and Benefits in Free Trade Agreements

Local context: Free Trade Agreement and colombian agriculture

• Agricultural inputs: Colombian farmers pay the most expensive fertilizer in the world. One liter in Colombia costs US$10,42 and in other countries it costs only US$ 3,13.
•  In Colombia FTA only benefits large producers who have the capacity to compete with the high productivity of other countries or those productive sectors who trade products from tropical region, they are the minority.
• Most farmers have large debts to banks and some of them have lost their ground. 
• Colombia is a producer of gasoline but the price of this inside the country is one of the highest in the world. For this reason in some occasions the transport prices of food within cities is more expensive than the same production. For example, there are some farmers who are paid US$6,25 for a sack of potatoes and the transport costs US$5,21  but the problem is that the production of this costs US$6,25. 

Local context: US- Colombia Free Trade Agreement

The U.S.-Colombia Free Trade Agreement (FTA) was implemented on May 15, 2012, and is  generating opportunities for both countries that are increasing economic growth and supporting job creation. With the FTA in place, the U.S.-Colombia trade partnership is stronger than ever and the highly complementary U.S. and Colombian economies are reaping the benefits.

If you want to get more information about this trade you can visit these web pages:

• http://www.vigworld.net/2012/05/03/colombia-u-s-free-trade-agreement-will-boost-business-and-strengthen-relations/
• http://www.ustr.gov/uscolombiatpa
• http://www.colombiaemb.org/FTA

Global context: Before and now

Initially, free trade agreements were planned to improve the international market, get high quality products at low prices and to promote competitiveness among countries of similar profiles both economic and social.

But now, after some years it has been deployed in some countries we can find the same claim and the same complaint of the leaders of underdeveloped countries who rightly feel bad, but especially the claim of directly affected citizens, owners of small and medium companies, farmers and ranchers.

Do you believe that free trade agreements between countries with significant economic differences work? Why?

Global context: Origin of FTAs

Adam Smith was free trade's progenitor due he recognized that the fewer impediments to trade there were, the richer everyone would become. Then, David Ricardo supported this idea by stating that international trade is essential. “Every Countries have something they do best, produced in greater quantities and better quality.”He said. The idea was to share the advantages of each country to live better together. 

what is the Free Trade Agreement (FTA)?

A free trade agreement between two or more countries is a deal to can commercialize goods and services conducted across their common borders, without tariffs or hindrances.

These agreements have proved to be one of the best ways to open up foreign markets to the companies of member-countries through exports because they do not have to pay common external tariff  reducing of this manner barriers to market their products in other countries.