Economic and Social Impact of NAFTA

Introduction

Many people have always been a firm believer of trade liberalization and integration at all levels, between people. I believe that the economic evidence is irrefutable as to the benefits derived product internationalization. All countries with open economies to foreign investment and increased trade volume per capita (per capita exports + imports per capita) achieve human development levels, quality of life and economic growth than their peers (Dwyer and Magnussen, 66). Now, we must not believe that any form of liberalization, integration and internationalization is good per se. Take the case of the current FTA being negotiated between the Andean countries and the United States. An agreement of this kind is beneficial as long as whole-sectorally-never throw a positive net result, i.e. that adding and subtracting all the good which is evil, to obtain a value for the country. So far, according to the text agreed at the negotiation table the net result that we are getting serious in my opinion difficult to answer. Let us first see what would be the positive effects that would get traded so far and then check which would be negative, so that the reader can make their own assessment and decide whether we have gains or losses in the FTA.

The Positive Impacts

A duty-free access to the United States for nearly 100 percent of Colombian export industrial supply-not only for today but for the potential that has been with the doors open in that market, which should not only maintain the current employment in the sector but generate new jobs. Although Alejandro Gaviria of CEDE estimated that the FTA would reduce total unemployment by 0.3 percentage points in just a few.

The generation of legal stability for investors and positioning as a platform for entry into the U.S. for businesspeople from third countries, which should translate into more domestic and foreign investment in the nation, even in difficult-impossible amount I would say - to quantify accurately. The contribution of a few percentage points to economic growth (Luceno, 59). The figure also remains without consensus. Mauricio Cardenas Fedesarrollo the estimated additional 1.3 percentage points as a result of NAFTA.

The growing volume of international trade of the country, both exports and imports. The NPD estimates that exports would grow by 6.44 percent while imports would in an 11.92 per cent (it is worth noting that this growth in imports far from being harmful is beneficial for the country given the nature of economic complementarily between the 2 nations. These are mostly capital goods and inputs not produced domestically). However, the CIDE estimated that in 10 years total exports will exceed imports. Improved international perceptions people have of Colombia abroad which should reduce some of the country risk and the cost of borrowing abroad.

The access-at a rate difficult to pin-Colombian companies to the U.S. public sector procurement. Strengthening controls on biopiracy, which should improve the protection of our biodiversity and other traditional knowledge. Access to training, technical assistance and ...