Research Problem

Integration has been a constant in the history of Latin America reflecting the struggle between

dependence and autonomy. This paper analyzes the opportunities and limits of this Latin

American integration contrasting the different integration initiatives, objectives and results to

formulate various integration scenarios taking into account traditional and new external

dependencies.

History of the problem

Before the economic opening and the final reduction of import tariffs (1992) Colombian trade in

general had a captive domestic market; the protectionist economic model and its high tariffs did

not facilitate the entry of other products to the country, which allowed them to have internal prices

higher than the international market. This situation brought about a lack of knowledge of the real

needs of consumers and a move away from them.

Then the process of economic opening the country's doors were opened, reducing import tariffs

and trade situation changed radically. The tariff decreased from 53% in 1989 to 43% in March

1990, then to 18% in August 1991 and in March 1992 was reduced to 15%.1

America is a business partner of great importance to the three countries, the volume of annual

transactions has a definite weight for the trade balance, therefore, currently is seeking to reach

more beneficial trade agreements, in this case, they are sought take advantage and anticipate

problems carrying out the Free Trade Agreement between the countries
For both it is important that the experience of other countries that have signed an FTA with the US

has been that its exports have grown substantially. In Chile, for example, they have increased by

more than 12% this year, yet it has entered into force this TLC. In Mexico, meanwhile, they have

grown 176% since when NAFTA came into force. With the ATPDEA, it has seen the Colombian

export 30% this year.

You have to look for new markets given the volatility of trade with neighbors. Exports to

Venezuela and Ecuador were reduced by 54% and 10% between January and July 2003. The

decline in exports to these countries has been offset by exports to the United States, thanks largely

to the ATPDEA, why these preferences they must become permanent.

Problem Statement

In any country in the developing world regardless of their situation geography, politics or ethnicity,

we believe this will depend for economic development and growth, largely foreign trade.

Therefore it is seeking to improve the ability to trade with different countries in this research

specific to the integration of three countries with NAFTA reference will be made this pact seeks

to increase the rate of economic growth, a significant expansion of exports, increased

competitiveness of enterprises, greater sector diversification, job creation resulting from increased

export activity, increased productivity by the liberalization of trade in services, modernization of

the entities involved in foreign trade.

In this study the advantages and disadvantages that can contract signing and implementation of

integration into NAFTA, when this is seen as a tool to gain competitive advantage in the market

will be investigated. a general analysis of the parameters and the areas involved, as well as the
central themes will be made, based on the information that can be obtained through the media,

books, magazines and internet.