President Gustavo Petro He once again insisted on a position that he has been making public for a long time: the need, according to him, to renegotiate the Free Trade Agreements (FTA) with the United States and Europe.
(See: Renegotiation of the FTA with the US: threats and alternatives for Colombia).
Last Thursday, November 21, the president assured that renegotiating the FTAs is vitlr for the sovereignty of the Nation. This task, furthermore, was given to Minister of Industry and Commerce, Luis Carlos Reyes, who was given one year to achieve it.
Petro spoke again about this topic after referring to the lawsuit that the Colombian State lost in the International Center for Settlement of Investment Disputes (ICSID) against Telefónica, a process that began during the government of Juan Manuel Santos and the ICT minister was David Luna, current opposition senator.
The ICSID is based in Spain, where Telefónica is from, so the president pointed out that there were no guarantees and stated that The specific articles of the FTA that must be adjusted are those related to the appearance in those instances.
(See: What is at stake for Colombia with Trump’s arrival to power).
“Minister Reyes must be asked to begin negotiating this article that is harmful to national security in both the FTA with the United States and the FTA with Europe. Next year I will be the president of Celac and we have a meeting with the European Union and this article has to be renegotiated. It is not the justice of the partner, it is the justice of the country that is privileged“said the president.
And he maintained that the country is “on the rocks” with respect to the 380 million dollars (about 357 million euros – more than 1.6 billion pesos) that must be paid to Telefónica.
(See: Colombian agricultural exports to the US grew 78% since the signing of the FTA).
Gustavo Petro.
Renegotiate FTAs
The FTA with the United States was signed in 2006, during the governments of Álvaro Uribe Vélez and George W. Bush. The one with Europe dates back to 2013, during the administration of Juan Manuel Santos. Likewise, the agreements provide for the parties to meet every year to evaluate them.
The Colombian American Chamber (AmCham Colombia) referred to the FTA with the US and said that the agreement already includes adjustment mechanisms that do not require complete renegotiation.
He added that chapter 10, which regulates the rules and commitments to protect and promote foreign investment, covers aspects such as the treatmentfair and equitable”, dispute resolution mechanisms, and exceptions related to national security.
(See: Trade tension between the US and China favors Colombian exports).
AmCham also recalled that Any renegotiation of the FTA is a bilateral process that requires the consensus of both parties. The United States would have to be willing to discuss and accept the modifications proposed by Colombia, which opens the possibility of it also raising its own requests for change.
PORTFOLIO
