To: Dr. Jefferys, Dr. Foster
By: Jesse Bevan
Date: April 23, 2012
Statement of Thesis and Project Summary
My
proposed thesis is: Given
successful examples of the NAFTA trade structure how can the U.S. implement a successful
and mutually beneficial trade relationship with Columbia? This will be achieved by exploring the benefits
the United States would gain through a free trade with Columbia and how the
United States can go through with free trade agreements looking to the trade
agreement of NAFTA as an example of structure and success.
Furthermore,
I hope to convey how creating a free trade environment will help in being of
benefit to both Columbia and the U.S. but especially to the U.S. Job creation
plus increased revenue through the agreement are reason enough to support such
a contract. Beyond a national scope in assessing benefit, I feel it would be
pertinent to look at how the trade agreement would also benefit specific
industries and businesses in the state of Utah.
Another
important topic beyond creating a solid trade agreement is to attack the
obstacles that stand in the way of nurturing an environment for such a trade to
exist by bring to greater light the barriers to trade that are present and
explore specific ways in which each of these hindrances can be addressed and
removed.
Review of Literature
The NAFTA trade
agreement instituted in 1994 was the beginning of a path that lead to the
highest prosperity that North America and the world had ever seen. By way of
free trade between competent nations both nations experience higher prosperity.
In the last decade Columbia has become the
best economic success story in Latin America. And despite drug violence, the
Capital Bogotá is currently safer than Miami, Washington, or Atlanta. The
economy is currently growing at a rate of 5% per year and Columbians can boast
both a large middle class and the fact that in the past six years, foreign
investments have gone up four times and exports tripled.
This
makes Columbia a prime candidate to become a trade partner who with we can
enjoy greater free trade. A free trade agreement implemented with Columbia would
mean an increase U.S. exports by $1.1 billion and give key U.S. good and
services duty free access in sectors from manufacturing to agriculture. It will
increase U.S. GDP by $2.5 billion and support thousands of additional U.S.
jobs. A free trade agreement would eliminate 80% of U.S. exports of consumer
and industrial products to Columbia. Another 7% of U.S. exports would receive tariff
free treatment within five years of implementation while remaining tariffs would
be eliminated within ten years of the implementation. Following that, the hope
would be that Columbia would join the WTO’s Information Technology Agreement
which would remove further trade barriers of informational technology products.
Despite the fact that it would help create
jobs and increase GDP, trade negotiations with Columbia have suffered in the
past months. U.S. Congress’ failure to secure approval of the Columbia Free
Trade Agreement has adversely affected bilateral relations between the two
nations.
Outline
Introduction
First idea/focus: Why Columbia? A history
of Columbian economy and U.S. trade relations
a. Columbian
economic success of the last decade
b. Trade
Agreements between U.S. and Columbia
a. President
Clinton’s trade agreement
b. CTPA
of 2006
Second idea/focus: What will be the
mutual benefit?
a. Nationwide
benefit
a. GDP
b. Job
creation
b. Benefit
on a state level, w/ emphasis on Utah
c. Columbian/Latin
American benefit.
a. Stock
Market merger between Columbia, Peru, and Chile
b. Columbian
potential to enter WTO
Third idea/focus: Current efforts to
achieve a free-trade agreement
a. Obama’s
efforts
b. Lack
of congressional effort
Fourth idea/focus: NAFTA agreement
structure
a. What
is NAFTA?
a. Origin
b. Structure
c. Function
d. Benefit/success
b. How
to go about Columbian incorporation to NAFTA or reach a like agreement.
Fifth idea/focus: Identify the barriers,
and methods of removal.
a. Import
Policies
i.
Tariffs
ii.
Non-tariffs
b. Government
procurement
c. Export
subsidies
d. Intellectual
property rights protection
e. Services
barriers
i.
Legal services
ii.
Financial services
iii.
Transportation
iv.
Communication
v.
Express delivery
f. Investment
Tentative completion date goals:
Date:
1. Initial Proposal
April 23, 2012
2. Background Research
June 1,
2012
3. Bibliographic Research
July 20,
2012
4. First Draft
August 20, 2012
5. Revision
September 20,
2012
6.
Revision October
1, 2012
7. Final Draft October
20, 2012
Annotated Bibliography:
http://www.sice.oas.org/ctyindex/USA/USTR_Reports/2011/NTE/COL_e.pdf -
Source of thorough information in regard to trade barriers that exist between
Columbia and U.S.
http://dailyreckoning.com/best-economy-in-latin-america/
- Site that provides a history of economic history, current trends and future
projections of the Columbian market.
http://en.wikipedia.org/wiki/United_States%E2%80%93Colombia_Free_Trade_Agreement
– wiki article with detailed information relating to history and current state
of trade relations with Columbia.
http://www.ustr.gov/uscolombiatpa
- A primary source government website that details the current efforts to implement
a trade agreement with Columbia. The site gives detailed information about key
facts, a labor action plan, as well as providing a current newsfeed of the
proceedings that take place with regard to negotiations between the U.S. and Columbia.
It also gives a breakdown of specific states and industries and how each will
be affected; in what way and to what degree respectively.
http://www.humanevents.com/article.php?id=27350
– News article from 2008 that gives details to the history of trade relations
with Columbia under the presidency of George Bush. It also gives statistics as
to the potential of the GDP for both countries were an agreement more heavily implemented.
"U.S.-Colombia
Trade Promotion Agreement". – CRS report by the government
giving key facts about the economies and trade history between U.S. and Columbia.
Luxner,
Larry, Colombia Reaches
Crossroads With Free Trade Agreement, The Washington Diplomat, 27 July
2011 – An article from the Washington Diplomat that outlines the last decade of
Columbian history, it’s economies steady improvement and how it would greatly
benefit from U.S. trade.
Hidalgo,
Juan C. and Griswold, D., Trade
Agreement Would Promote U.S. Exports and Colombian Civil Society, Free
Trade Bulletin No. 44, 15 February 2011 – An article that gives detailed
suggestion as to the barriers to trade that exist and the way in which we can
and must remove and resolve the problems.
Tarter,
Steve, and McDonald, Karen, Schock,
Cat CEO praise trade pact with Colombia, The Journal Star, 6 April 2011.
– an article that outlines the benefits that both economies will incur once a
free trade agreement is made. Goes into
detail about job creation and GDP impact .
El Congreso de Colombia, Proyecto de Ley no. 201 de
2012 – Columbia’s own congressional bill of trade
protocol between the United States and Columbia.
José
R. Cárdenas, How Obama is
losing Colombia FP, 25 April 2011 – article detailing how the
shortcomings of president Obama and congress as well as a new election in Columbia
have all affected the position that many Columbians have with regard to their enthusiasm
to have a free trade implementation.
http://www.state.gov/r/pa/ei/bgn/35754.htm
- Government website giving a complete and detailed profile of Columbian
economy, government, society, etc.
http://www.csmonitor.com/World/Americas/2011/0529/Peru-Colombia-and-Chile-merge-stock-markets
- article giving details to the important merger of the three biggest economies
in South America of Chile, Columbia, and
Peru to create a massive stock market.
www.naftanow.org – gives detailed
explanation to everything one should know about NAFTA.
