The diplomatic sector and foreign trade are found again in a moment of uncertainty due to the statements of the president, Gustavo Petro, On renegotiate the Free Trade Agreement (FTA) with the United States, but also, cancel the current with Israel.
According to experts, any of the two scenarios do not depend solely on the president, but involves the Congress of the Republic, Well, they are responsible for approving Colombia’s complaint about the FTAs.
(Read: What should happen to change the FTA with the US and finish the one with Israel?)
This also has a series of times available to make the decision, less than a year that Petro leaves the government.
For Javier Díaz, president of Analdex, if Congress came to take the path that the president wants, The FTAs have an additional validity of 6 months after their completion, This implies that for that time, Colombia’s commitments with Israel would be in force.
(See more: Peru and the United Arab Emirates begin negotiations to build a TLC)
If the FTA with Israel is canceled, it would remain in force for additional 6 months after the complaint.
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“That is to say that almost that the rest of the Petro government would be in force. Something similar happens with the United States, since a modification must have the approval of the Congress and cannot be decided unilaterally by the president. We hope that these two decisions do not go from a presidential demonstration”Diaz argued.
From the point of view of the FTA with the United States, although the mechanism is the same and must go through the Colombia Congress and receive authorization from the legislative of that country, the president of the Colombian Chamber of Commerce (Amcham Colombia), María Claudia Lacouture, He pointed out that without exception every commercial treaty can be subject to review and rethinking within their own mechanisms.
“The technical review is permanent and today, with the negotiation of the 10%tariff, a deep analysis is advanced to identify improvements. In any case, any adjustment is made in a coordinated and bilateral manner, guaranteeing the legal certainty and stability of economic relations”He said.
(See more: Colombia and Israel, five years of a TLC marked by tensions and low diversification)
With the United States, any adjustment requires bilateral negotiation and approval of both congresses.
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Future impact
One of the factors to take into account about President Petro’s statements is about the implications that he would have to renegotiate with the United States and finish the FTA with Israel. According to Manuel Camilo Gónzalez, a professor at the Javeriana University, It is very likely that the American giant is not willing to renegotiate a treaty that generates benefits.
“Even in the opposite case, there are things that Colombia would be willing to renegotiate that the United States could see how they are not so beneficial and that they could harm,” he said.
He added that from the point of view of the FTA with Israel, if it ends and in the future the treaty would be thought to, the situation would be complex then “The creation of a new agreement implies that it is not simply signed, but ratifies”
Now, for Martín Ibarra, president of Araujo Ibarra, any of these procedures must evaluate the economic and commercial impact for all sectors export and import goods and services. “In the case of the NAFTA with Israel, exports of coffee, flowers, confectionery, precious stones, articles of the plastic sector, sugar, among other sectors would be affected”, He concluded.
(Read: Colombia increases by 137.8% export companies to the EU after 12 years of the FTA)
The completion of the FTA with Israel would affect coffee exports, flowers, confectionery, plastics, sugar and precious stones.
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Criticism in Congress
President Petro’s ads generated a series of bids in the Congress of the Republic. Senator Paola Holguín said that “It is concerned that today you can review the FTA with the United States at a time where we do not have the best relations with that country”
Likewise, the representative, Luis Miguel López, indicated that the government is putting in “risk due to ideology which moves the economy.” But Congressman, Alejandro Toro, said that “It is very important to renegotiate or end the FTA”, For the situation in Gaza.
(See: Poultry Sector Intensifies Surveillance on Chicken Imports)
Diana K. Rodríguez T.
Portfolio journalist
