Open Trade and Export – Prensa Libre

Economic openness in our region began in the eighties with the establishment of the export promotion policy, which left behind the policy of the Economic Commission for Latin America and the Caribbean in the sixties of import substitution and consolidated with the entry of the countries of the region into the General Agreement on Tariffs. and Trade (GATT).

At that time, partial scope agreements were being negotiated with many countries, among them the agreement with Mexico, which was then called Tuxtla Gutierrez, a Mexican initiative, the goal of which is political dialogue, the consolidation of peace, democracy, as well as the promotion of regional cooperation.

In contrast, in the north, Mexico was in talks with the United States and Canada to reach a trade agreement that finally concluded with the signing of a tripartite free trade agreement called NAFTA or NAFTA in the 1990s, which at that time, it was considered a new generation and laid the foundations of the model to follow. This agreement arose from the need to grant greater competitiveness between developed countries Canada and the United States and a developing country Mexico.

With the creation of the World Trade Organization in 1995, which established binding multilateral trade rules, partial-scope agreements no longer comply with WTO rules. These FTAs ​​were promoted as models of economic openness which, from that time onwards, have been promoted regionally with greater intensity since the 1990s.

International trade is a basic policy by which countries can expand their markets and thus obtain appropriate levels of economic and social development, by promoting exports through trade, financial and technological exchange, thus making countries compete at the same level. international in order to obtain the mechanisms that promote increases in productivity and well-being.

See also  Joe Biden announces a tax cut for middle-class families in America

The change in foreign trade policy was profound, so it was necessary to produce what was done more efficiently and with universal quality, opening the way to specialization of work, business and production; Expansion of markets, access to internationalization, openness, free trade and, finally, the use of any strategy aimed at effectively including developing countries in the global economy, where each country enhances its strategy to obtain the best possible results.

The new generation of FTAs ​​consists of trade agreements to eliminate or significantly reduce tariffs on goods and services between the parties, taking into account clauses respecting social and environmental issues. This type of agreement should have been consistent with the rules of the World Trade Organization.

Of course, free trade agreements do not lead to an economic, social and political union, as is the case with the European Union. Although this is a deeper integration agreement, it was created, among other things, to promote trade exchange, but it also included provisions relating to monetary, fiscal and budgetary policies, as well as the free movement of persons and common political bodies, which are not items. in the Free Trade Agreement.

In conclusion, the FTA consists of eliminating or significantly reducing tariffs on goods between the parties, and agreements on goods and services. These agreements must be compatible with the regulations of the World Trade Organization.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top