POLITÉCNICO GRANCOLOMBIANO LATIN AMERICA AND THE UNITED STATES INTEGRATION PROJECT
PRESENTED BY: KAREN LUCIA GOMEZ VANEGAS
CODIGO 1421025091 1421025091
OSCAR ALEXANDER FLOREZ CUBIDES
CODIGO 1221820040 1221820040
JEYMI BARRERA VIVAS
CODIGO 1411023250 1411023250
DIRECTOR:
JOHANA PAOLA HOYOS JIMENEZ
POLITÉCNICO GRANCOLOMBIANO UNIVERSITY ECONOMIC, ACCOUNTING AND ADMINISTRATIVE SCIENCES FACULTY ADMINISTRATION DEPARTMENT COLOMBIA 2.017 1
CONTENTS
INTRODUCTION
3
OBJECTIVES
4
PROBLEM
5
HYPOTHESIS
6
1. BRASIL
8
2. COLOMBIA
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3. PERU
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4. THEORETICAL FRAMEWORK
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4.1 BRASIL
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4.2 COLOMBIA
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4.3 PERU
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5. LEGAL FRAMEWORK
30
5.1 BRASIL
30
5.2 COLOMBIA
35
5.3 PERU
37
46. CONCEPTUAL FRAMEWORK
39
CONCLUSIONS
40
BIBLIOGRAPHICAL SOURCES
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2
INTRODUCTION
The present project has the purpose of finding f inding different options for integration through Free Trade Agreements that will lead us to a commercial integration between Latin America and the United States.
Our interest is to see how it is possible to give a good management of these treaties or the option of proposing a new one in order to make viable a commercial integration through the commercialization of textiles, arriving at truthful, clear, comprehensive and objective definitions that we can put in practice.
The countries that we previously selected for this investigation are Colombia, Brasil and Perú, very well recognized in Latin America.
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OBJECTIVES
GENERAL OBJECTIVES
Analyzing similar Free Trade agreements.
Identifying different possibilities in order to have a comercial integration.
SPECIFIC OBJECTIVES
Creating an effective approach that will lead us to the commercial integration with the United States.
Knowing the existent treaties and be able to fully comprehend them.
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PROBLEM
In the last decades the textile industry has advanced in the development of new materials destined to give answer to the constant requests in the technological advance and of the American fashion. The main problem is the difficulty that the Latin American countries present when it comes to generating trade relations with other countries, in this particular case "USA".
With this project we seek to take advantage of the strengths of each country so that in one place the American investor can find what he is looking for, applying international marketing principles that break the mental boundaries created over time.
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HYPOTHESIS
Within the world economy and globalization of the same, it is possible to think that some South American countries tend to become important actors in the emergence of the subcontinent as a strong economic actor away from the third world, attractive for the investment by its immense natural resources, by its policies of economic openness and the emergence of emerging economies such as Brazil, the world's sixth economy and its interest to be a solid regional leader with a view to becoming that world power that sets the standard as do other countries as states United
Will it succeed? We believe that other countries in the region such as Colombia and Peru and their new economic opening policies will be strategic allies to achieve this goal.
That is why we seek to take advantage of the strengths of each country so that in one place the American investor can find what he is looking for, applying international marketing principles that break the mental boundaries created over time.
We believe that the current work within the textile industry can be strengthened, at the moment of obtaining a treaty with the United States, bringing its technology and combining it with the South American workforce. This in order to improve production in quantity and quality of products, with alliances that optimize sales and distribution.
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After knowing the operation of the commercial treaties that the United States has with the selected countries in Latin America. We will carry out an analysis of its economy, the number of inhabitants, its GDP; identifying their strengths in the different economic sectors and, based on this, to know what can be offered and the success that free trade would have between these products.
As well as the benefits this would bring to the Latino and North American population. With projects and results in the short, medium and long term; kee ping track of executables.
This project seeks initially to generate economic growth among the countries that are part of the trade agreement, as well as to increase the production of textiles, reducing the unemployment rate of each country and innovating with technology that can be implemented in the development of the design and manufacture of the products.
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1. BRASIL
Federative Republic of Brasil Capital: Brasilia Population: 204.450.649 people (2014) GDP US$ 3.263.865 million (2014)
1.1 RELIGION
In Brazil there is freedom of worship and separation of church and state, and therefore through the political constitution Brazil is a secular state, religious intolerance is prohibited. In practice the Brazilian population is mostly Catholic according to the 2010 census with 64.6% (123 million people) making it the country with the largest Catholic population in the world.
1.2 ECONOMY
The Brazilian economy is the largest economy in Latin America in terms of GDP and the second largest in the Americas, also the seventh in the world according to the International Monetary Fund and according to it and the World Bank will be one of the 5 largest in the following decades powers of the world with China, the United States, India and Mexico.
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As of 2003 the increase in the volume and price of international demand for raw materials such as minerals, oil, coal and meat, foreign investment, new capital inflows and structural economic reforms, Brazil's economy has become one of the main of the world.
It is the world's largest producer of coffee, has the world's first cattle herd (cattle breeders and livestock species), a major producer of precious stones and an industry of raw materials and manufactured products such as military equipment, televisions, cell phones, computers, cars and planes.
1.3 CULTURE
Brazil is a multicultural country marked by diverse migratory currents of all the continents and the intense mestizaje characteristic in the countries conquered by European countries from colonial times.
In literature are outstanding authors such as Jorge Amado and works such as "Doña Flor and his two husbands", "Gabriela, clove and Canela" and "The shop of the miracles", Gilberto Freyre and his work "Casa grande y senzala" and Manuel Antonio de Almeida with "Memories of a militia sergeant", among other authors.
Among the popular music of Brazil is the world famous samba, bossa nova, choro, axé, la lambada, forró and also rock and hip hop are very popular.
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Also in Brazil, there are film festivals such as "The São Paulo Film Festival", the "Gramado Film Festival" and the "Rio de Janeiro International Film Festival".
1.4 IMPORTANT FACTS
Its the sixth economy of the world. (above Spain, Canada, Italy and Britain.) Emergent potency. (Country with potential to become world superpower in the near future.)
Second economy of America.
• Fifth most populous country in the world (204,450,649 million people in 2014)
One of the world's largest reserves of fresh water.
It has the greatest biodiversity on the planet.
First tourist destination in South America and second in Latin America behind Mexico.
The country has many large and developed economic sectors such as agriculture, mining, manufacturing and services, as well as a large labor market.
In recent years Brazilian exports have been growing, the main export products include aircraft, electronic equipment, automobiles, alcohol, textiles, footwear, iron, steel, coffee, orange juice, soy and canned meat.
Brazil markets more than one hundred countries and 74% of the exported goods are manufactured or semi-manufactured. Its largest trading partners are the European Union (26%), Mercosur and Latin America (25%), Asia (17%) and the United States (15%).
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Its an active member of many commercial trades with different american countries and in the rest of the world, some of them are:
MERCOSUR Union of South American Nations The Andean Community The Inter-American Development Bank The Free Trade Agreements (FTAs) of Brazil as a member of MERCOSUR with: Chile, Mexico, Peru, India, Egypt, Israel, The Andean Community, The European Union (EU).
According to the facts already mentioned, we are talking about Brazil being a very strong economy in the region and tending to be in the near future one of the world economic powers along with other countries like Russia, India or China).
Recently in 2015, Colombia and Brazil signed many commercial trades where both countries committed to start the negotiation of another trade to protect the inversions and avoid the doble tributation, they signed cooperation covenants and investment facilitation, as well as in education, indigenous issues in the border area, agriculture, technology and police information exchange, among others, also agreed to facilitate the exports of the automotive industry considering that Brazil is the main vehicle manufacturer in the región of the American continent, also Colombia has a growing market for autoparts, this was one of the sectors, along with textiles and machinery, of greater participation during the business mission Brazil-Colombia held in the Chamber of Commerce of Bogota.
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With this scenario it is more than clear that countries like Colombia and Peru benefit from trade with Brazil, and through this they can improve their exports not only to the United States but also to countries in the region and other continents.
It also remains to see that Brazil could benefit from trade agreements such as the one with Colombia with the United States, it can be a channel of passage of its products to that country, although as mentioned above, Brazil has good commercial relations with the country of north.
In statements made by the president of Proexport Colombia, Luis Guillermo Plata, "Colombia sees in Brazil an important commercial partner". Therefore, strengthening our bilateral trade relations constitutes a fundamental step towards the creation of a more dynamic South American commercial market.
1.5 TEXTILE INDUSTRY
The Brazilian Textile and Apparel Sector stands out in the world scenario, not only for its professionalism, creativity and technology, but also for the dimensions of its textile park, here we have some important facts about it
Its the fifth biggest textile industry and the fourth of clothing in the world.
Its the second biggest producer of denim.
Independent in the production of cotton.
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Brazil produces 5.5 billion garments per year, being a world reference in beachwear, jeanswear and homewear.
Brazil has companies like ABIT (Brazilian Association of the Textile and Clothing Industry) in charge of grouping about 30 thousand textile companies of all sizes, producing natural, artificial and synthetic fibers, through spinning mills, which provide support, orientation and sustainable development, as well as defending their interests before governmental bodies and national and international entities, with the aim of transforming the Brazilian textile and clothing sector into a reference in technology and innovation in the world.
As an additional fact this year came 26 of the most important textile companies of Brazil to the Colombiatex 2017 fair, as a great bet of that country by the Colombian market. These companies bring to the country the collections in fabrics for all types of clothing as well as accessories and supplies, suitable for national production. To Colombia, these companies come with the support of the Brazilian Fashion Industry Internationalization Program, Texbrasil created by ABIT, in partnership with the Agency for Promotion of Exports and Investment, Apex-Brazil, with the objective of gaining a greater presence in the markets of the region. Due to the size of the textile Brazilian industry and its infrastructure, it could generate agreements with Colombia and Peru where, for example, one could take advantage of the strengths of each of the industries in these countries to associate and conquer new markets where there is no presence of it and improve where there already is.
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2. COLOMBIA
Republic of Colombia Capital: Bogotá Population: 49.404.339 people (2017) GDP: 282.5 million (2016)
2.1 RELIGION
The predominant religion in Colombia is the Catholic religion. 92% of the national population professes to profess Catholicism or are registered as Catholics, but within that same population can be counted groups of indifferent religious. These figures take into account the percentage of Catholic baptisms, which does not necessarily reflect the number of believers.
Until the 1991 constitution, Catholicism was the state's official religion. The country was consecrated to the Sacred Heart of Jesus, so recurrently columnists use that fact to refer to the "country of the sacred heart."
The remaining 8% are members of other religious communities such as Christians, Jehovah's Witnesses, Mormons, Buddhist and Taoist sects, Muslims, Jews, or natural religions, all with a minority representation..
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2.2 ECONOMY
Colombia is ranked as the fourth largest economy in Latin America, after Brazil, Mexico and Argentina and in the international ranking, is among the 31 largest in the world.
It is part of the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa), which make up emerging economies with high potential for development.
In 2012 entered into force the Free Trade Agreement between Colombia and the United States. The agreement adds to the already 10 existing treaties, and to another six that are in negotiation.
Its economy is largely based on the production of primary goods. In the second quarter of 2017, the Colombian economy grew by 1.3%, while in the second quarter of 2016 the Colombian economy grew by 2.5%. This was reported by the Dane when presenting data on economic growth or gross domestic product (GDP) between April and June. 2.3 CULTURE The social culture of Colombia is the result of the mixture of Europeans, especially those coming from Spain, the indigenous peoples and the African slaves brought by the Spaniards. Many aspects of Colombian culture originate in the 16th century with the arrival of the Spaniards and their interaction with native civilizations, some like the Muiscas and the Taironas. Upon their arrival, the Spaniards expanded Catholicism, the feudal system of encomienda, and a caste system that favored white people born in Europe. After independence, the criollos fought to establish a pluralistic political system, which was divided between liberal and conservative ideals. The 15
conservatives supported the union between the Catholic Church and the State, while the liberals defended that both powers appeared separately.
Due to its colonial history the Colombian culture is very similar to that of other Latin American countries. The colonial legacy of the Spaniards extends throughout the country and indigenous peoples have distanced themselves from their pre-Columbian roots. Today, Colombian culture is a mixture of European and indigenous customs and traditions that are reflected through music, art, literature and the relationship with nature.
The geographical layout of Colombia, with the hostility of its terrain and the abrupt variety of its climate, has always made travel and communications very difficult, which has contributed to a widespread regionalism. Despite this regionalism, football is the link that unites Colombian society, also divided into economic classes. Another celebration that also holds the Colombian people together is the carnival. Carnival occupies a very important place in the Colombian culture and is a long awaited party year after year.
The cultural manifestations of the people in Colombia, usually cheerful and colorful, are visible in festivals and carnivals in which music plays a leading role. Our roots are also reflected in handicrafts and archaeological parks, as well as paintings and sculptures by great artists.
2.4 IMPORTANT FACTS
Colombia exchanged 3.7 billion of TES Treasury Bonds in the local public debt market, which expired in 2009, 2010 and 2011, and delivered titles for the years 2012, 2014 and
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2018. Thus, it extended the profile of the Colombian debt and reduced the needs for domestic financing from a total of 22 trillion to 19.6 trillion, giving more space to private sector financing needs.
Colombia, unlike many countries, is better prepared to face the global crisis and its authorities have adopted economic measures and structural reforms to maintain investor confidence in the national economy and its financial system is solid and capable of dealing with eventual difficulties, according to the report of the Board of the International Monetary Fund.
The main exports are coffee, cotton, cocoa, petroleum, plastics, iron, steel, coal, fruits, flowers, leather, textiles, industrial products and manufactured goods.
Third world country in water resources: 1,200 rivers -258 large rivers-, 1,600 lakes, 4,500 micro basins and 1,900 marshes.
Some valuable inventions are the Hakim Valve, the Gas Sheet, the Pacemaker, the Baby Contact Lens and the Baby Carrier.
We are the second world exporter and we have the greatest diversity of flower species in the world, more than 50 thousand, of which 3,500 are orchids and 233 native orchids; we are the first producer of lilys and the second of roses.
It is the third largest producer of coffee in the world. It has the largest coffee research center in the country and the largest freeze-dried coffee plant (process for dehydration in cold) in America and the second in the world
Its 7 times smaller than Brasil and it has almost the same amount of flowers which represent 20% of the plants in the world.
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It is the second country in biodiversity and first in biodiversity per square meter of the world.
The main commercial treaties OF Colombia are: CAN , ALCA, ATPA, TLC G3
2.5 TEXTILE INDUSTRY
The textile industry is one of the generators of change, reflected not only in its economic contribution, but also in the technological advances that have been derived from this industry. Its strengthening in international markets, agreements such as the Group of Three (G-3) and the Andean Community of Nations (CAN) have given it the possibility of its positioning as one of the non-traditional industries, and has offered its participants and their economies an annual GDP increase. The Colombian textile industry is characterized by its geographical concentration, the most important companies are located in cities such as Medellín and Bogotá; in the first one covers more than 51% of the national textile production and in Bogotá 38% of the production in the country.
Colombia has evolved a lot with constant updating, high impact business transformations, big name textile fairs such as COLOMBIA MODA and many other tools that make it an investment country.
According to research carried out by the Ministry of Commerce, Industry and Tourism, companies in the textile sector appear as the main protagonists in the study of world-class sectors in Colombia, which makes Colombia very attractive for the commercialization of textiles worldwide.
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Colombia counts on traditional companies and old important textiles such as Coltejer and Fabricato, which produce 34% of the National fabric.
We know that global trends are focused on climate change, this orientation of consumers gives Colombia a favorable opportunity for its wide biodiversity that would allow the development of green products through natural fibers.
This opens a great possibility of strategic alliance between Latin American countries to achieve a commercial integration with the United States.
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3. PERU
Republic of Peru Capital: Lima Population: 30.135.875 people (2012) GDP 192.1 million (2016)
3.1 RELIGION
Catholicism is the religion that traditionally identifies Peruvian society. However, with Catholicism, there are expressions of a native religion based on the cult of the sun, the Pachamama (Mother Earth) and the elements of nature in general.
3.2 ECONOMY
The economy of Peru is the sixth largest economy of Latin America in terms of Internal Product Brugo (GDP) Catholicism is the religion that traditionally identifies Peruvian society, however with Catholicism coexist.
The increase in exports of nontraditional products (34.25%) would explain the increase in domestic production (GDP), which grew 2.28% in August 2017, compared to the same month of 2016, according to the National Institute of Statistics and Informatics (INEI) ). In addition, between January and August, the economy grew 2.2%. *
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3.3 CULTURE
The Peruvian culture is a great mixture of components of different ethnic groups that inhabited and inhabit what is now the territory of Peru, the most important being the Aboriginal and Creole or Spanish block, followed by the Afro-Peruvian and Asian blocks and, to a lesser extent, the Italoperuano , all this is enhanced by the three main natural regions, ie the coast, the jungle and the mountains. It is created from customs, practices, codes, norms, forms of life and traditions existing in Peruvian society.
3.4 IMPORTANT FACTS
There are about 90 microclimates in Peru, making it one of the most biodiverse countries in the world.
Cusco was declared Historical Patrimony of the Humanity in 1983
The 2 best types of cotton in the world, Pima and Tangüis are peruvian.
Trade agreements: WTO, Andean Community, Mercosur, APEC, EFTA, Pacific Alliance, Bilateral: Cuba, Chile, Mexico, USA, Canada, Singapore, China, Panama, Japan, Thailand, South Korea, European Union, Costa Rica , Venezuela and Honduras. Brazil to start applying.
The Trade Facilitation Agreement (CFA) of the World Trade Organization (WTO) entered into force on 22 February 2017,
Peru is the main producer of valuable metals and minerals such as silver, copper and zinc.
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It should be noted that Brazil is the main trade partner of Peru at the Latin American level. In 2015, trade was over US $ 3 billion. It was the first destination of exports and the first supplier of goods. Globally, it was the fourth largest trading partner, the eighth export market, having sold for US $ 1,072 million, and was the third country to supply goods worth US $ 1 932 million.
3.5 TEXTILE INDUSTRY
Peru has an event that promotes the offer of products related to textiles for the international market called PERÚMODA. Its main objective is to enable specialized international buyers to take direct contact and establish business relationships with national companies.
In addition to this event Peru has the Expotextil Peru fair, which year after year has been dedicating greater efforts in favor of the development and growth in the textile circuit, economic benefit for this country. In turn we find a wide range of companies dedicated to spinning, weaving, dyeing, garment finishing, printing, embroidery, among others that allow to cover different international companies of the textile sector.
According to the bank Scotiabank Peru exports textiles and clothing for about US $ 1,195 million during the year 2017, with a tendency to rise, its main target market is the US, Brazil and Colombia.
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4. THEORETICAL FRAMEWORK
4.1 BRASIL
Brazil is today a protagonist in the global scenario and a leading power in the region, as well as revalued the role of the region within its projection as a world power, therefore, the construc tion of South America as a political space and economic integration is one of the priorities of its foreign policy. In this case Brazil needs, on the one hand, the support of the most important countries of the region or, if necessary, carry the counterweight of these countries. In this order Colombia is a country with sufficient material resources to be strategic ally of Brazil in this project.
Historically the relations between Colombia and Brazil had been almost nonexistent, they had the perception of a geographic proximity, but nothing beyond, not even to have in common the responsibility of counting in their territories with the Amazonia had made that they had meetings or dialogues to achieve a mutual collaboration in aspects such as conservation, the drug traffic that happens there and many other issues that affect that region.
Today this has changed, the multilateralism assumed by the Santos government has received a positive response to its proposals on issues such as security not only by other governments such as Venezuela and Ecuador but also by the Brazilian government with the which has approached within an understanding of cooperation, contributing each other in the treatment of common
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problems such as drug trafficking and crime, without affecting its relationship with the United States. Already from the Uribe government, the perception that Brazil was opposed to the free market was changed, Colombian security and the Colombian American alignment, the cause, the collaboration spirit demonstrated by the Lula Da Silva government to mediate several bilateral disputes with Venezuela within of the political and economic sphere in the increase of the Brazilian investments in Colombia, the intensification of the commercial exchange between both nations and a series of agreements of cooperation of multiple subjects and of Amazonian integration.
Brazil was for a long time a passive regional power in South America due to its own isolation, traditionally Brazil's foreign policy oscillated between a close relationship with the United States and different third world facets, however, since Lula Da Silva's first term in his inaugural speech I speak of a prosperous and stable South America.
Another important fact is the campaign that has led Brazil in the Mercosur bloc to become an agency open to all countries in the region to boost economic integration, here Colombia has a strategic opportunity to negotiate its entry as a permanent member.
Colombia and Brazil are now able to link their foreign policy objectives and gain mutual benefits, beyond competitive processes, where Brazil clearly leads the way through different parameters that establish the power of a country in the international system.
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However, this sphere of influence of Brazil, is clearly limited by the United States, an example became visible in the negotiations on the Free Trade Area of the Americas (FTAA), where several Latin American countries were interested in reaching an area of free continental trade, in contrast Brazil disagreed, although several Central American stat es and the Caribbean as well as Colombia, Peru and Chile have already signed FTA with the country of the north, the latter's hegemony is still very marked.
The acceptance of Brazil's leadership in the region will depend greatly on its ability to mediate and overcome the political, ideological and economic discrepancies that exist between South American countries.
There is also the fact that Brazilian society is skeptical of regional integration and is not willing to pay the costs of regional leadership, in this group there is the business sector, in particular the exporter that could be affected if the measures of commercial protection and opens the economy. In summary, seeing the previous scenario, economic cooperation does not depend on itself, there is a very important political framework and many factors where Colombia will be limited to a few nothing more, nevertheless the panorama is promising and as previously explained openness in trade relations between the two countries is already yielding results.
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4.2 COLOMBIA
The history of the textile industry in Colombia dates back to the 18th century, when Socorro artisans provided a flourishing market for wool and cotton fabrics using rudimentary technology. In 1900 and 1921 were established the first factories in the country which would determine the fate of the textile industry in Colombia to date, most of them were located in Medellín and its surroundings.
As a consequence of the great depression of the 1930s, the textile sector was restructured and two large leading companies emerged: Coltejer, which absorbed the fabrics of Roussillon; and Fabricato that arose of the union Antioqueña of Yarns and Tissues and the factory Yarns and Fabrics of the Hato.
These two companies together with Tejicondor (constituted in 1934), established a real oligopoly, according to the industrial census realized in 1945 representing 60% of the capacity of textile production.
Over time Colombia has become an exporter of cotton, yarn, textiles and clothing.
The relationship between nontraditional exports in Colombia and its concluding ones has been widely studied in the economic literature (Villar, 1984, Botero and Meisel, 1988, Alonso, 1993, Steiner and Wüllner, 1994 and Mesa, Cocky Jiménez, 1999, among others ). Most of these
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studies find a revealing relationship between smaller exports and the real exchange rate. However, the range of flexibility of this relationship varies considerably between different studies. . For the case of developing countries, including Colombia, Reinhart (1995) and Arizeet al. (1999) also carry out multivariate integration analysis, however, the scheme of error correction model could be improper to not analyze the degree of the considered variables.
The country that is positioned as the most important donor of textiles and products made in the world is China, but the world market for textiles and clothing is quite popular, in the United States market for example, participate importantly Mexico, China, Taiwan, Hong Kong, India, Pakistan, the Dominican Republic and Honduras. Therefore, competition is given different pieces, some countries like Asians offer large volumes at low prices, while others look for segments where they weigh more quality than price.
From the present analysis they show that the external demand plays an enormous role in the determination of the smaller exports in Colombia. Likewise, and as the theory suggests, relative prices also significantly affect export demand. On the contrary, the exchange rate does not appear relevant in such boldness.
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4.3 PERÚ
The first signs of the birth of the Peruvian industry occurred during the first government of Castile; lacked a structural foundation because it began in a light and medium way in the trade of goods and basic consumption.
In 1896 was created the National Society of Industries, that had between its executives to Gio Batta Isola, who is one of the textile pioneers.
In 1918 cotton was already exported and its fiber was quoted with prizes in the Cotton Exchange of Liverpool - England.
In Peru; The city of Lima housed the factory emporium in the late nineteenth and early twentieth centuries: Santa Catalina (1888), San Jacinto (1897), property Gio Batta Isola and Giacomo Gerbolini who also brought experts from Italy who formed the first School of Chemicals in the Art of Dyeing. La Victoria (1898), owned by the Pardo family. With very modern machinery, in 1929 it merged with the Vitarte factory and formed the "United Companies Vitarte and Victoria SA". El Progreso (1900), owned by German immigrants and textile pioneers Tomás Schofield and John Bremmer. The Bellota (1900), The Inca (1903), property of "Inca Cotton Mill". The Union (1914) The Pacific (1915), which made fabrics of wool and artificial silk (rayon). The Andes (1926). The Olivari tannery, for its part, was a good example of the leather and fashion industry of its time; among other.
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The Textile Committee was the first that was created in the National Society of Industry (SNI), on September 28, 1945 and groups textile companies. The first session of the Directing Council was composed of Santiago Gerbolini (Pacific Factory) who also integrated the Commission for the creation of SENATI; model of industrial technical training service, which I take as an ancestor referent to SENAI (in Brazil) and SENA (in Colombia).
A year later, in order to promote and stimulate the study, research and dissemination of knowledge and technical experiences related to the activities of the textile industry, on November 10, 1962, the Peruvian Association of Textile Technicians (APTT) . Whose initiative, despite many difficulties, has transcended modestly and silently in the modern history of the Peruvian textile industry, together with national and foreign companies dedicated to the chemical textile industry and the Textile Committee of SNI, Peru, a pioneer in giving lectures, talks and technical conversations for spinning, dyeing and finishing plants.
With the above we can outline a strategic plan where we propose to use the strengths of each of these countries, developing strategies for the textile sector taking advantage of different variables including geographical location, financial strength, internal factors, competitive position, market growth, leadership, treaties international standards, among others. Traductor de Google para empresas:Google Translator ToolkitTraductor de sitios web
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5. LEGAL FRAME WORK
5.1 BRASIL
Regional economic institutions and the free trade agreements (FTAs) of Brazil:
The MERCOSUR
The Latin American Integration Association (ALADI)
The Union of South American Nations (UNASUR)
The Latin American and Caribbean Economic System (SELA)
The Andean Community (Associate)
The Economic Commission for Latin America and the Caribbean (ECLAC)
The Inter-American Development Bank (IDB)
The Latin America-Asia Forum (FEALAC)
The South America-Arab Countries Summit (ASPA)
The Organization of American States (OEA)
Brazil's Free Trade Agreements (FTAs) as a member of MERCOSUR: Chile, Mexico, Peru, India, Egypt, Israel, the Andean Community, the European Union (EU) The European Union and Brazil The relations between Spain and Brazil.
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All Latin American countries have some agreement or preferential treatment with Brazil (the MERCOSUR countries, the Andean Community, Chile, the ALADI countries, Mexico ...). The European Union has an agreement with MERCOSUR. The exporting company must know the advantages of a commercial agreement signed with Brazil (tariff reductions, rules of origin, technical standards, investments, intellectual property rights, public markets, trade in services .. .) But it is also necessary to know the treaties that Brazil may have with other countries.
For example, a Guatemalan company wishing to export to Brazil could be at a disadvantage with a Chilean or Mexican company, since both Chile and Mexico have an agreement in force with Brazil, so these two companies will have all the advantages derived from the free trade agreement (TLC). The Guatemalan company must take this factor into account in its export strategy to Brazil.
In addition, it is highly recommended to know the regional institutions related to Brazil (MERCOSUR, the Andean Community ...)
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Example of negotiations in Brazil: Free Trade Agreement (FTA) between Mercosur and the European Union:
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Economic Complementation Agreement between the Andean Community and Mercosur:
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The business contract General remarks: Be precise in describing the obligations of both parties and quality control. Applicable laws: In 2012, Brazil signed the Vienna Convention on International Contracts, which entered into force in October 2014. The Brazilian legal system is complex. It is not easy for an alien to understand Brazilian law. It is recommended to use international laws or a system of arbitration and have recourse to a Brazilian lawyer. The language of the contract: Portuguese. The main rules of international law can be easily accepted by a Brazilian supplier. Intellectual property Competent national bodies: The body in charge of patent and trademark protection in Brazil is the INPI (National Institute of Industrial Property).
Competent regional bodies: MERCOSUR (Southern Common Market), UPOV (International Union for the Protection of New Varieties of Plants).
International Agreements: Member of WIPO (World Intellectual Property Organization) Adhered to the Paris Convention on the Protection of Intellectual Property
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5.2 COLOMBIA
Decree 0731 of 2012 has been established as a textile safeguard measure in existing international agreements. In turn we find the following laws that govern the textile sector in Colombia:
• Law 9 of 1979 • Framework Law on Occupational Health in Colombia. • Resolution 2400 of 1979 Known as the "General Security Statute". • Decree 614 of 1984 Establishes the bases for the organization and administration of
Occupational Health.
The legal framework has been complemented by the adoption of international agreements that allow to minimize the political risk for the investor. On the one hand, there are insurance mechanisms against non-commercial risks such as expropriation, currency inconvertibility and damages due to acts of violence (Opic, Miga, Iadi)
From the reforms introduced in the regulations - Law 9 of 1991 - different strategies of promotional character of the government were initiated through institutions like Coinvertir, entity created by the government in 1992, that contributed to reach interesting results in terms of the
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income of capitals to the country. Likewise, the flow of Colombian investment abroad also responded satisfactorily.
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5.3 PERU
Peruvian exports in the sector are around two billion dollars per year. United States is the main destination.
The textile activity is supported by multiple public and private institutions that seek to expand the participation of Peruvian products in different markets of the world, among them we have:
• PROMPEX • CONACS • INIA • MINAG • TEXTILE PERU MARKET PLACE • CAMELYDA • ADEX • COMEX • WITHOUT • IPAC • IPA
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Different laws have been applied in search of continuous improvement such as Supreme Decree No 243, the Andean tariff preferences and drug eradication law in conjunction with the current government
With the entry into force of the FTA with the US and other countries like Canada, an increase in exports is expected to exceed the proposed expectations. This FTA can generate annual benefits in the textile sector relevant to Peru's textile positioning
Favorable Terms of Exchange
Positive macroeconomic indicators, eg a conservative fiscal policy: tendency towards a deficit <1%
ATPDEA in force and negotiating an FTA with the US, and others. Current up to 2006
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6. CONCEPTUAL FRAME WORK
AMBIENTE POLITICO PROPICIO
MARCO LEGAL
NEGOCIACION
AMBIENTE ECONOMICO IDEAL
TRATADOS DE LIBRE COMERCIO Y OTROS
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CONCLUSIONS
The diversity of textile fairs in the countries investigated can be the channel of union to find in one place what the US investor needs for its business, so that there is an increase of American investment, confidence in the products offered in Latin America backed by state-of-theart technology for the textile industry, extensive experience, cutting edge and innovation.
Its very clear to see the posibility of a great strategic alliance between the 3 countries through a Free Commercial Agreement, putting together the strengths in each of them to have and effective integration with the United States and finally accomplishing an economic growth beneficial to all the parts.
The companies in the field of textile production have been growing exponentially within a somewhat informal market, where they have had evolution and development that has surpassed the own expectations, becoming a commercial dynamism that has not been accompanied even by the government and even a a good free trade agreement that will allow full and effective integration with the United States.
Given that global markets have different and extremely changing demands, the diversity needed to meet them can be achieved through a strong strategic alliance between these countries.
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