COLUSA

What about Free Trade?

In my last visit to Colombia, I found out there were some reasons for which people wouldn't like President Bush to stay in office. One of those reasons is the actual Free Trade Agreement(FTA) taking place between Colombia and The United States.
As you must know, the Bush administration has aggressively worked to open markets globally to expand American opportunities in overseas market. I don't see any problem with that.
A lot has been said about Free Trade between U.S. and Colombia. Most opponents argue that there is no way Colombian products can compete in a free market simply because Colombian industries are not strong enough and well prepared to produce and sell at the same level a foreign industry will. Therefore, opponents say that FAT will hurt the Colombian economy. But, wouldn't this FTA be a great opportunity to make Colombian industries stronger and more competitive at the global market? Will Colombian industries ever have a chance to integrate to new markets in the world?
I believe FTA is more about integration than competition. In other words, when a country's economy is open to the free market, products become more accessible at the global level. The main idea of a free trade agreement is to open and expand reaching capacities globally. I think it might be good for the Colombian economy to be able to reach new markets, and export its products without having to face high barriers, just like NAFTA did in the case of Mexico and Canada.
With the trend of globalization, integration among powerful economies and small economies becomes necessary. I think that by building more barriers or tariffs only high prices, less exports and high deficits will result.
In addition, thinking from a consumer's point of view, I believe this trade will bring new alternatives to choose from, and it will also lessen the impact of monopolies in society, bringing fair prices and better products.
It might be a wonderful experience to be in Bogota drinking a delicious orange juice made with Florida oranges, as well as it will be a gift of life to have the opportunity to drink a coup of Colombian coffee in Washington, DC.

posted by GERMAN V @ 3:01 PM