Introduction

This page has been created with the purpose of could have given to know perks and disadvantages of a free trade agreement, first we will explain that it is a FTA, main theme is to handle the FTA among Perú and China, the which one this one in complete negotiation in order to a possible agreement.

WHAT IS FCT?

A Free Trade Agreement (FTA or in spanish TLC) consists in a commercial agreement regional or bilateral to enlarge the goods market and services among the participating countries. Basically, it consists on goods among the parts, and agreements on the subject of services. This agreement goes by the rules of the World Trade Organization (WTO) or for mutual consent among the participating countries itself.

A FTA necessarily does not bear an economic, social integration and regional policy, as belongs to the case the European Union, the Comunidad Andina, the Mercosur and the Comunidad Sudamericana de Naciones. Even though they created for themselves these foment commercial interchange, also they included politic district attorney's clauses and budgetary, as well as the common, movement of people and political organisms missing elements in a FTA.

The objectives of the FTA are:

· Being able to eliminate all of the customs tariffs payments to the products importing among themselves and eliminate all the measure that prevents or make it difficult to the products entrance to both countries’ territory.

· Establishing legal dispositions than let them regulate everyone them related areas with the commerce.

· Guaranteeing every person's duties or both countries’ company, when they decide investing in another country.

· Establishing dispositions that they regulate both countries’ commerce of the services among nationals.

· Insuring the fulfillment of the duties and obligations that have been negotiated, establishing a mechanism than solve any problem in a fast form that rise in the products commerce, services or those related with the investments.

All the perks than two or more countries take place in a FTA, only they give themselves among themselves and they do not give themselves to the rests countries worldly than have not negotiated that FTA.

A FTA's negotiation calls for time study to know all the laws and commercial practices domestic with the one that is negotiated, you consult with the different national sectors dedicated to the production and with another important sectors, for example professionals’ associations that get acquainted with the services fringe benefit. In like manner, demand that reunions in each one of the countries come true stop to achieve the possible, a TLC than of gainings to the countries that they negotiate it to.

A FTA constitutes an integral agreement that includes themes key of the relation economic among parts. In the event of the access to the goods market, discuss related aspects with tariff barriers and no tariff, safeguards, origin, technical- obstacles, sanitary- measures standards and defense mechanisms commercial.

The FTA incorporates also relative subjects to the commerce of services (telecommunications, financiers, professionals, construction, software, among others), to the electronic commerce and the governmental shoppings, the promotion and reciprocal investments protection and the proprietorships’ protection intellectual, the fulfillment of the labor standards.

By Juan Pablo.

PERU-CHINA TRADE

The China–Peru Free Trade Agreement is a proposed bilateral free trade agreement designed to eliminate obstacles to trade and investment between China and Peru.

China and Peru have signed a Agreement of Free Trade (FTA) which purpose is to improve the investments of the Asiatic Gigant in the South American country and the trade between these two complementary countries

Around 2007 the trading Exchange between China and Peru was about 5,000 millions of dollars, which means an improvement of 35.1 % over 2006, when the numbers were 3,700 millions, said the Peruvian commercial economic counsellor in that country, Jorge Chain. This context owes to that Peru has taken advantage very well of the opportunities that have appeared.

Jorge Chain said that to date the traditional exports represent the 90% of the total China shipments while the Non Traditional are only 10%.

He mentioned that the most demanded Traditional peruvian products in this market are the minerals (copper, iron, lead and molybdenum) and fish flour.

Among the No Traditional products are the gigant squid (or pota), Woods for floors, alpaca fabric and saw Woods.

In that way, there are many sectors that are making a great effort to impulse the Non Traditional exports.

An indicator of that effort is that in the last 5 years our exportations of that type have improved 6.5 times.

According the macroeconomic variables, during 2006 the volumen of the China exportations improved in 78% over 2005; meanwhile this country was the main commercial partner of Peru between april and may of this year.

Likewise, since 2002 the commercial Exchange with this asian nation has grown 4.7 times, the exports 5.3 times and the imports 4 times.

China emphasized that to imporve the commerce, the Peruvian businessmen must participate in commercial fairs and misión and they have to create a Market Operative (PMO) to determine priorities in the short, medium and long term.

To date the China investments are in mining (mine Shougang, Toromocho, Sichin) where the amount is over the 3,200 millions of dollars.

By Gabriela.

ADVANTAGES AND DISADVANTAGES OF FTA PERU – CHINA

Nowdays sustained Chinese economic growth requires ever greater quantities of basic commodities such as petroleum products, coal, iron and steel, and strategic minerals. China is also investing in the infrastructure of Latin American countries to help them more effectively bring their products to market.

The exportation of Peru to China increased by 190 percent, while imports from China during the same period increased by 200 percent. Peru hopes will increase its volume of trade with China.

Peru is strategic importance to China, not only for the strategic resources that country offers, but also because possess Pacific ports which may play a role in shipping goods to China from other points of origin in Latin America.

Advantages

Disadvantages

Access to a more wide market, the attraction of more investments and cooperation. Improves in the infrastructure of the country on having constructed roads, up to the ports, construction of ports. Generates employments during the construction. Airports and the process is optimized of exportation. Industrial restructuring (change industrial machinery for new and more efficient). Reduce the customs barriers and allows the revenue of capital goods minor prices. Better competitiveness of the companies. Facilitates the foreign investment. Facilitates the integration of the country with the world economy.

The products sensitive to the prices, especially for reduction sales that are the products make in China. In these cases, a progressive tax relief goes to be not to generate a hurt to the national manufacturers. Problem of exportable offer. There are of benefit the transnational ones that possess specializing manpower. The small and medium company (trade and service), they hurt.

By Luis Alfonso.

THE ENGLISH ROLE IN BUSINESS

English is the official language of these days world, full of globalization and that is the main reason about its importance, importance that especially involves the business.

In the age of globalization, communication is of paramount importance. The lack of proper communication skills creates barriers and distortion leading to miscommunication and breakdown in meaning which can have some very negative repercussions for any company or business set-up.

English is emerging as the global language for communication especially in the business world.

But, why is English emerging as the global language for communication?

The importance of English is because of two important nations of the world, which speak it and take it as a mother language. We are speaking about England and the United States. These countries, from several years behind, first England with its colonies and then United States, after its intervention in the First World War, have been imposing the use of English.

And the reason is that both nations are real world powers since a long time ago and not only in the economic way, especially USA (the first worldwide economy), but for the same way, its cultures, they have been penetrating in diverse nations.

English has been cited as the major language of international business. It is the most wide spread language in the world. Thus, English has become a major international language for worldwide communication. Proficiency in English is a mandatory requirement for any professional working in a global business environment. While professions may vary, the need to be proficient in English is a basic skill for any global worker.

Nowadays, to be able to apply for a job, it is indispensable to speak English. Even, there are studies, which indicate that the persons, who can speak English, manage to get 30 % more of salary than those who can't speak English.

So, this is how important English is: to speak it, it can be the difference between closing or not a business, to get or not a job and finally the power to earn a better salary that the rest inside the same company.

So, here is the conclusion: when you learn how to speak English, the opportunities are limitless because English is the most important language to international communication.

By Mayra.