FTA with Colombia

Free Trade Agreements (FTA, hereafter) have become unpopular in the US. FTAs force traumatic adjustment of the economic structures of the countries involved which are largely unwelcome by the peoples. But in the long-term the new economic organization FTAs give way to is a better optimum for the combined economies and, other things being equal, can excel both parties. Generally I’m sympathetic to FTAs.

But while the countries involved in FTAs can use each other’s strengths they can also infect each other with their weaknesses. FTAs are not always beneficial regardless of the conditions and the partners. How many countries are less than fully satisfied with the FTAs they’ve singed up? Mexico, France, Argentina spring to mind.

Lately Bush has been pushing a FTA with Colombia. But in this case Bush’s motivations don’t seem to be the long-term well-being of the US economy. He has been very blunt about this being a politically driven decision. To put it shortly, the decision has a name: Hugo Chávez. Bush is seeking to promote right-wing governments in South America (such as Uribe’s) as a way of undermining Chávez.

Now of course there’s a moral question as to whether this kind of intentions are acceptable in politics. But setting that aside, it is very dangerous to fasten one’s economy to a very unstable partner (Colombia tops rankings of the most violent countries in the world) for decades in order to get some uncertain political return. Let’s hope yet again that the House will put a stop to Bush’s adventure.