Saturday, April 1, 2023

The balance of the ten-year FTA with the United States: negative and expensive

A new economic order

Ten years ago, the United States and Colombia began a new phase in their economic relations, a Free Trade Agreement (FTA).

This process originates from the economic and political constitution after the dissolution of the Soviet Union and is based on the principles of free trade and capital. Other industrialized countries have also promoted agreements, in addition to the standards of the World Trade Organization, today in intensive care.

Theories of globalization, especially those dominated by financial capital, spread the idea of ​​non-intervention by the state in countries such as Latin America and Africa. High levels of corruption served as justification for this.

Banking has been privatized, many insurance markets have been discontinued, public development agencies have been disbanded, and public resource partnerships have emerged with private profits in the areas of infrastructure, telecommunications, transportation, and residential services.

In addition, tax benefits were granted without justification and the economy shifted to sectors of low and high informality, such as mining and trade.

What happened to the covenant?

The balance of the FTA with the United States after ten years accurately shows the consequences of these changes in the global order.

The market was open, the courts relaxed, and trade became easier. But it was a benefit to some, while, on a general balance, exports from Colombia to the United States decreased by 54%.

Colombia has accumulated a deficit in bilateral trade with the United States since the agreement entered into force, which would be enough to finance all the lines 1 and 2 of the Bogotá Metro, all the work on the La Línea tunnel and grant support. 500,000 pesos is measured as over three million senior adults in one year; This is characterized by the following graph:

Total exports, exports and imports with the United States of Colombia with the United States of America.

Nation World News Desk
Nation World News Desk
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