“Colombia is moving forward”: Minister Plata

Minister, we have been hearing a lot about the FTA with Canada, but why is it so important?

It is the first agreement we have had with a North American country. Canada is the largest importer per capita in the world and this FTA sends a clear message that Colombia is moving forward to internationalize its economy, that Colombia is negotiating free trade agreements with different countries and not just with the US.

Many analysts argue that this FTA is unbalanced and that Canada could benefit more than Colombia from the deal. Do you agree?

There are always two ways of looking at a trade agreement. One is a static model, in which you sell a bit more and nothing more happens. But I think what is really important in a trade agreement, particularly one with a more developed nation, is the new incentives that will be created through the FTA, because they bring stability, because they bring an open market.
 
In the end, free trade agreements are also about investment, developing new sectors and new products. I foresee that maybe in the very beginning Canada will get some advantages from the trade agreement, but in the end what is important is that we see more investments from Canada and other countries in Colombia.

Do you think the FTA could face some trouble during the ratification process in Colombia?

The plan is that we will present this to our Congress next year and I don’t foresee a difficulty. We obviously have to go through the debates, but I think in the end it will be approved.

And in Canada? We must not forget that Prime Minister Stephen Harper has a minority government, faces strong opposition in Parliament and is currently having a political crisis.

In the case of Canada the ratification process is a bit different from Colombia, because it has a Parliament. The agreement doesn’t have to be ratified by Parliament, it is done by the Cabinet itself. But, of course, having a minority government and opposition doesn’t make things easier. Nonetheless, when we met with Prime Minister Harper and Minister (of International Trade) Stockwell Day, they both seemed positive and optimistic about the approval of the FTA.

Passing to the agreement with the EFTA States, Colombia’s trade relations with this group of countries is not very significant. Why did you pursue an agreement with them?

It is a first step into Europe. We are also negotiating an agreement with the 27 nations of the European Union, which we hope to conclude next year, and I think having a deal with the four EFTA nations complements that agreement. If you want to see it this way, it is the last piece in the puzzle.

Even though the countries are small, Switzerland is an important partner of Colombia and one of the largest investors in the country, and certainly trade with Switzerland makes this FTA more important.

Let’s talk about the cooperation deal with China. How will Colombia benefit from this deal?

More than a cooperation agreement it is an investment agreement, an investment, promotion and protection agreement. It is important because China is becoming a large player in the international arena, it is becoming a large investor in the world. We believe that by having an investment treaty with China we can certainly capture more Chinese investments that go to other parts of the world, and especially to South America.

Finally, a general question regarding the three deals struck recently. One of the criticisms that has been made when the country signs an agreement is Colombia’s human rights record. How is that being dealt with in these three cases? 

I know there has been criticism of our human rights record, but I must say that Colombia has made tremendous improvements, and we can show that. We can continue to make improvements by creating jobs and giving people opportunities to move away from poverty and violence, and in the end, that is the most important reason why we are pursuing free trade agreements.