The free trade agreement is a subject that is widely talked about, but not many people actually know what it does. Let’s start by stating what its letters stand for:
What is an FTA?
FTA is a known acronym that stands for Free Trade Agreement, this is a deal between two or more countries, through which these nations agree a set of conditions and rules that will help improve the commerce between them, allowing so their products and services to be more freely commercialized.
So, now knowing what the concept means, we can go ahead and mention what the FTA is good for. Basically, it allows countries to export and sell their products abroad under better conditions, without paying taxes or being submitted to other kinds of barriers. In most countries, and specially ours, Colombia, the inside market is unable to supply enough to impulse the nation’s growth, this is why Colombia seems to be “forced” to look for other markets in other countries, and the FTA would pretty much make this easier.
The more the country exports, the more the national economy will grow. And the nation will be far better because more jobs will appear and the average income of the population would grow, which at the same time will mean a greater demand from those who supply for the national market.
If a nation has a rather strong economy, this implies a better set of basic services, in both health and education for the most vulnerable population.
In Colombia’s case, having an FTA with Ecuador, Peru and the United States, would help our products to enter and be sold in the world’s greater markets, which have a population with great acquiring power, an opportunity much too good to watch pass by.
