How to take advantage of trade agreements in Colombia

trade agreements in Colombia

In this post we are going to explain how you can benefit from trade agreements with other countries, we will refer to the definition and meaning of FTA, the way in which businessmen in Colombia can expand their economic spectrum with said agreements and how an accounting service in Bogotá can be very useful to start business relationships with countries where these agreements exist.

What is an FTA or free trade agreement?

A free trade agreement or FTA is an agreement or pact that is carried out between two or more nations, to eliminate or reduce the barriers that traditionally appear in international trade.

Thus, you will be able to trade goods and services across borders with subsidies. In addition, you can buy and sell these goods and services with reduced tariffs and even without them.

On the other hand, through an FTA, it is possible to avoid some prohibitions that may appear in the legislation of the member countries of the agreement, regarding trade between countries.

Many experts consider trade agreements to be of three types: unilateral, bilateral and multilateral. However, from our expert company in accounting advice in Colombia we consider that the unilateral ones are not treaties or agreements, in a strict sense. The foregoing, because it is not possible for an agreement to exist when a single party (a single country) is participating. In order for a pact or treaty to exist, it is necessary for two or more parties to participate (states, for the case at hand).

How do entrepreneurs in Colombia benefit from an FTA?

These types of agreements allow countries to have quick and timely access to certain productive agents and, also, to the latest generation technologies. If you are an entrepreneur, you will benefit from such access.

Regarding the internal market, it is clear that the international exchange of goods and services increases competition. If you see that your competitors are getting ahead of you, you will become more competitive so as not to be left behind.

This increase, in turn, promotes competitiveness, productivity and, of course, innovation and entrepreneurship. You, as an entrepreneur, will be forced to innovate and undertake so as not to be left behind, which is good for you.

In the presence of an FTA, it is possible that the domestic prices of certain products and services are reduced, which benefits you as a businessperson because consumption within the country increases.

The increase in consumption or, what is the same, sales, usually generates economic growth. This suits you as an entrepreneur.

The increase in the size of the business market

  • The size of your organization’s market will expand, since you will be able to export much more easily.
  • In addition, you will be able to import in a more fluid way. This will allow you to expand your horizons within the country, since you will be able to sell goods and services that you did not have before.
  • Additionally, you will have raw materials to innovate in new products and, in this way, increase sales. As a consequence, your market will be enhanced.
  • All these economic factors have a positive impact on sustainability in what has to do with the economic growth of the country and, incidentally, of your

How to get the most out of trade agreements?

With everything exposed so far, it has been shown that you can obtain great benefits if you join any of the free trade agreements that Colombia has. In conclusion, trade agreements or free trade agreements are extremely convenient for all businessmen. If you advise yourself properly, you will see that your market expands both nationally and internationally. And if you still have doubts about it, remember that you have an accounting firm in Bogotá that is always willing to listen to you.