US Ambassador to Colombia Warns Risks of Renegotiating FTA with the US
US Ambassador to Colombia Warns Risks of Renegotiating FTA with the US
Coffee Network (Bogota) - The United States Ambassador to Colombia, Francisco Palmieri, warned about the risks that would be implied by renegotiating the Free Trade Agreement (FTA) between Colombia and the United States and invited them to use the mechanisms that the agreement has to reach understandings and protect what was built. since its entry into force.
The statement was made during the discussion “Colombia – United States FTA, is it possible to improve it?”, organized by the Colombian American Chamber of Commerce (AmCham Colombia) within the framework of the celebration of its 68th anniversary.
Colombian president Gustavo Petro clarified that Colombia intends to amend the FTA signed with the US as Colombian exports are not benefitting enough.
The US is the largest trading partner of Colombia’s exports and it is the main buyer of Colombian coffee. Colombia exported 5.005 million bags of 60-kg to the US last year, equivalent to 43.8% of total exports of 111.408 million bags.
According to Palmieri, although Colombia and the United States have faced challenges since the FTA was approved in 2012, both countries must work together to strengthen the agreement, instead of isolating their markets.
“My hope is that the future is not one in which we resort to actions that limit our potential to address these challenges, such as price controls, tariffs or product access bans, but one in which the entire potential of the agreement,” he assured.
He emphasized that obstacles should not be built to the historical progress of both countries. “Let us move forward for the benefit of our two great nations and the Treaty is the path we can use to realize all the dreams of our companies, workers and communities.”
Also, he warned that the difficulty of negotiating a new FTA, under the circumstances of polarization that exist worldwide, implies that “reopening a negotiation of a new treaty will not be an easy or productive path, really.”
In this sense, he assured that “we must use the mechanisms that exist in the Agreement, which have served so much in the last ten years, to achieve better understandings and protect what we have because there are forces within the United States that want to analyze in a "in a much more critical manner to the concept of free trade with other countries", which is why he called for caution and to think very carefully before following a path of renegotiation.
The president of the Colombian American Chamber, AmCham Colombia, María Claudia Lacouture, said that Colombia must be clear about what it means to renegotiate and review, and its implications. “If we want to renegotiate there must be an agreement between the two countries, there has to be approval by the US Congress and, understanding the context, the elections, the different variables that are occurring in that country, the possibilities of “An interest in reviewing and renegotiating the trade agreement is quite limited.”
Lacouture warned that if Colombia enters a renegotiation, it is as if it were renegotiating the trade agreement and it could take nine years again, so he questioned what will happen in the interim.
“We could have substantial changes in the conditions that would lead Colombia to enter a process that would suddenly have different variables than the ones we have today, it would generate uncertainty and additionally there would be a process that could limit the trust and stability that today exists. day," he highlighted.
She added that the review, on the other hand, does not have the large context of a renegotiation, which is renegotiating a trade agreement, but it does allow for a clear review of those things that can be improved. “There are paths, there are formats, but in the end, beyond seeking a renegotiation and review at the same time, what we need is greater use of the agreement,” she expressed.
Colombia must focus on diversifying its export offer and boosting its competitiveness, for which joint and coordinated work between the public and private sectors is essential.
"Let's talk about diversifying, that does not mean destroying, it means expanding the supply and potentiating the market, it does not mean abandoning oil, weakening coffee, flowers or bananas, it means carrying out private public work with dedication and enthusiasm that allows us to be more productive, expand our products, be more attractive, more competitive and with greater added value; Let's talk about taking advantage and less about renegotiation," she pointed out.
By Diana Delgado
