Module I Activity No. 1 Homework: History and basic concepts
of foreign trade
History of economic integration
It begins from the second half of the 19th century, with Great Britain being the leader in international trade, which was based on free trade, that is, it was generated without any type of barriers, neither tariff nor commercial, as the basis for converting gold, at the end of the first world war, Britain loses its power, and ceases to be the center of trade.
From the depression of 1929, different policies began to be created, such as increased customs tariffs and obstacles to imports, that is how the United States increases these tariffs to 900 articles, Britain abandons its gold-based pattern, and a law to strengthen imports in 1932, which ends free trade agreements.
The US in 1934 ratified bilateral agreements with the “principle of reciprocity”, in which different measures were applied according to the products, these tariffs were adjusted, as well as the US and the Soviet Union, became benchmarks of international trade
The US proposes the construction of an economic structure made up of
• International Bank for Reconstruction and Development.
• International Monetary Fund (IMF)
• World Trade Organization (WTO).
With the creation of this structure and as the different countries evolved, they began integration processes and confirmed the different negotiation flows between them.
Multilateral Organizations
World Trade Organization (WTO)
This organization its most important function is to regulate trade between different countries, which are constituted by different agreements and standards that are finally approved and negotiated by the nations, with this it seeks to regulate these policies and ensure that they are within the limits initially agreed.
It also acts as a forum in which all the nations with which different topics related to foreign trade converse and resolve, to propose solutions and how to preserve and protect consumers.
At the same time it also acts as an intermediary, if any procedure or commercial exchange problems arise, this organization helps to solve them.
World Customs Organization (WCO)
In 1947 it began with thirteen European governments which formed the Committee for European Economic Cooperation, thus a study group was formed and they established inter-European customs unions and would be focused on the principles of general agreement, tariffs and trade.
The organization as such was formed in 1953 on January 26 in Brussels
Already in 1994 it adopts the name of World Customs Organization, this is an intergovernmental organization, and is dedicated solely to customs issues, representing 177 administrations which represent about 98% of world trade.
It also acts as a technical advisor in customs services, global standards are also implemented, which process implementation, execution, and compliance with activities, as well as a forum to share experiences and different proposals that can improve the activity every day. customs.
International Monetary Fund (IMF)
This fund was created in 1945, and its main function is to promote monetary cooperation, which seeks to strengthen the different nations by promoting employment, improving the conditions of the different countries and ensuring monetary stability among them, thus ensuring the system monetary to be able to make the different transactions worldwide.
Financial assistance
This fund has different financial assistance to support the countries that confirm it, as well as different lines of credit with which these nations have this financial support.
Technical assistance
Different technical consultancies are also provided in terms of implementation, training, personalized assistance, and they also provide support in tax, monetary and exchange administration policies. Also with the regulation of banking systems.
World Bank (WB)
Bank created in 1944 and its mission was to rebuild Europe after the Second World War, after this it evolved and has even worked to alleviate world poverty
This organization is made up of 187 members and is made up of different development institutions such as:
International Bank for Reconstruction and Development
The International Development Association
The International Finance Corporation
The Multilateral Investment Guarantee Agency
The International Center for Settlement of Investment Disputes
It also has different services where lines of credit and funds stand out among others, which are aimed at strengthening development and work in different countries.
Economic Integration Agreements
These economic integration agreements are those signed by two or more countries in search of eliminating some tariffs or trade barriers that, if maintained with the other countries, this seeks to generate more exports and development within the countries, but at the same time, this elimination of tariffs is profitable for the countries that sign the agreement.
Various studies have been made of these agreements where the different impacts are taken into account, where it is sought to reveal if they are really profitable for these countries, of these agreements there are several signed worldwide, such as the Europeans or those of Latin America "Mercosur and the Latin Community ”, all of them directed and constituted in order to strengthen their imports and exports, reaching different agreements to reduce or modify certain tariffs.
Many countries benefit from these agreements, increasing their exports. What they seek is to encourage negotiation and seek development and increase the market.
Colombia
Multilateral Organizations
For Colombia, it has subscribed to two different organizations
• World Trade Organization
• Latin American Integration Association
Regional Trade Agreements
The agreements signed for the region are as follows
• Latin American Integration Association
• Andean Community
• The Pacific Alliance
Free trade agreements
Which seek to eliminate tariffs or other barriers for the case of Colombia and the different countries with FTA where different tariffs and articles are agreed, this according to the points and parameters agreed for each FTA
• Colombia-Mexico FTA (G-2)
• Colombia-Chile FTA
• Colombia-Northern Triangle FTA
• Colombia-Canada FTA
• Colombia-US FTA
• Colombia-European Union (EU) Trade Agreement
• Colombia-EFTA FTA
• Colombia-South Korea FTA
• Colombia-Costa Rica FTA
• Colombia-Panama FTA
• Colombia-Israel FTA
presented by
Jhon Jairo Muñoz Munar
Tecnología en Gestión de Procesos Logísticos
Universidad Manuela Beltrán
2020
sources consulted
Module I Material UMB Virtual
