Free trade agreement between Colombia and the United States (US) is based on cardinal performance objectives that aim at promoting economic growth in the nations. The agreement has come at the right time when various nations are gearing towards forming strong economic blocks. The nations are keen to enhance their competitiveness and negotiation power on various issues about economic and social advancement.
We will write a custom Essay on Free Trade Agreement Colombia and USA specifically for you
301 certified writers online
Indeed, nations that seek to expand their growth in terms of investment, production, and distribution of goods should join viable strategic trading blocks. This is essential since no nation can achieve its performance objectives in isolation. They need the input and support from other nations with the same level of passion and determination for growth.
Scholars affirm that the agreement that has been signed between the US and Colombia is a major step forward in ensuring that the economies benefit from each other effectively. The agreement will facilitate trade, political engagement and international relations between the nations. This is evident since the agreement provides requisite guidelines that hold the capacity of fostering peace between the nations.
In particular, the agreement is set to eliminate the existing bottlenecks that have been affecting trade and other activities between the nations. It provides a favorable environment that will advance smooth operations between the nations under mutual ideals.
The agreement also seeks to ensure that the borders between the nations are opened to facilitate the smooth flow of goods. That is the opening of the borders is set to enhance importation and exportation activities between the nations.
The objective of the foreign policy
As noted, the trade agreement between Colombia and the US is an important step in promoting commercial activities in the nations. The agreement is to facilitate trade or exchange of goods through the elimination of trade barriers that have been impeding commercial activities between the countries. It is based on clear-cut policies and strategies that are economically oriented to ensure that its execution is well on course.
According to the international trade commission (ITC), the agreement brings together two big economies in the region. This is evident since the US is a big economy that produces and suppliers a lot of goods such as wheat, beacon, barley, soybeans, and vegetables.
Colombia also has a vibrant economy as it is ranked third best economy in Central and South America regions. This shows that the nations will greatly benefit from the new trade arrangement that they have signed (Platzer 2). The objective of the agreement is to eliminate the evident trade barriers that have been affecting importation and exportation of goods between the nations.
This is essential in ensuring the improved exchange of goods through importation and exportation to manage consumer needs. The key trade barriers that are to be eliminated include trade tariffs, the balance of payment deficit, quota system and trade embargoes. The removal of these trade barriers is set to facilitate a duty-free transfer of goods between the nations.
The agreement also stipulates that the remaining issues that affect trade between the nations that have not been covered will be addressed within 15 years. Indeed, duty-free transfer of goods between the nations is to ensure that the nations acquire essential products that they do not produce effectively (Platzer 5). For instance, the United States is bound to import fruits from Colombia while Colombia will import grains from the US.
This exchange program is to ensure that the locals in these nations can acquire basic items with limited complications. The program will also facilitate absolute integration between the nations economically, politically and diplomatically. This will enhance their international relationship that is necessary for meaningful growth.
Analysis of the policy’s impact on geopolitics and international relations
The policy that is under adoption present various scenarios in which it seeks to impact operations of the two nations locally and internationally. Firstly, it will present far-reaching internal and external changes in the two nations. That is the trade agreement will have an immense impact on the nations political, social, economic and international relations.
According to ITC, the agreement that has been signed will foster economic growth by increasing GDP performance in both nations. For instance, the US economy is projected to record a GDP growth of $2.5bilion. This will facilitate the development of strong structural adjustments that foster international interrelations. It will also expand trade between the nations by promoting import and export activities.
This will ensure the effective transfer of goods and services that will contribute to the development of the economies. Imperatively, it will support the creation of more jobs for individuals with employment potential who lack jobs in the two nations. Diplomatically, the agreement will help in building a strong and cordial relationship between the nations (Villareal 19).
Get your first paper with 15% OFF
That is the agreement will see the nations improve on their engagement at the international level. Indeed, the agreement gives a clear picture that the nations commit working together to enhance performance in their economies. The agreement also portrays the nations as potential business partners to other nations who may need joining the agreement.
This gives the nations leverage advantage since other countries see them as international partners (Villareal 9). Politically, the agreement will help in ensuring that the nations adopt viable political policies and guidelines. They will strive to formulate issue-oriented guidelines to help in aligning their political systems. This is essential since politics is an integral element that affects operations in various nations.
The unfavorable political environment cannot support meaningful business activities in any setting. Therefore, the agreement between the nations will go along way in aligning geopolitical activities in both nations. Further, the agreement would present a significant impact between the two nations and other global economies. This is because some nations may consider the move by the two countries as an isolative move (Platzer 16).
However, other nations may consider the move as a noble step towards achieving economic integration in the entire region. Authorities in the nations may establish that the nations are ready for regional integration that is vital for economic integration. Such divergent views may affect the realization of the noble intentions of the agreement since lack of unity is a recipe for great failure.
It is proper to conclude that the agreement between the US and Colombia will be of great benefit to both nations. This is evident since the agreement will promote economic growth in the nations. In particular, it will expand trade by increasing the number of products that both nations can import or export from each other.
It will also enhance the competitiveness of the two nations and support more job creation for the citizens. Consequently, the agreement that is set with the aim of promoting the duty-free transfer of goods will help in increasing the GDP growth of the nations.
International Trade Commission (ITC). U.S.-Oman Free Trade Agreement: Potential Economy wide and Selected Sectoral Effect. New York (NY). DIANE Publishing. 2008. Print.
Platzer, Michaela. Pending U.S. and EU Free Trade Agreements with South Korea: Possible Implications for Automobile and Other Manufacturing Industries. New York (NY). DIANE Publishing. 2010. Print.
Villareal, Angeles. Proposed U.S.-Colombia Free Trade Agreement. New York (NY). DIANE Publishing. 2009. Print.