Given successful examples of the NAFTA trade structure how can the U.S. implement a successful and mutually beneficial trade relationship with Columbia?
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.
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
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?
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
b. Government procurement
c. Export subsidies
d. Intellectual property rights protection
e. Services barriers
i. Legal services
ii. Financial services
v. Express delivery
Tentative completion date goals:
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
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 .
Steven Chase, Stephen Harper defends free-trade deal with Colombia The Globe and Mail August 2011
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.