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.