USING
SUPPLY CHAIN ANALYSIS TO EXAMINE THE COSTS OF NON-TARIFF MEASURES (NTMs) AND
THE BENEFITS OF TRADE FACILITATION
When we think of supply chain we might just think on the
steps taken to produce a product until it arrives into the customers hands. However
is so much more than that and that is the reason why when we analyze all the
different types of methods we can use to have a supply chain for a specific
product we can also see the relation with the costs of NTMs and trade
facilitation.
Different countries throughout the world have seen both
the positives and negatives results when applying different supplying methods. For
example some have seen that when they manufacture their products involving
different countries then they have seen their costs increase; while others see
the great results of trading their goods to countries within their region to
lower their trade costs.
The supply chain model use when manufacturing,
transporting and trading the company’s goods will have a significant impact on
the costs and the trades between countries. By optimizing the supply chain
models not only time, money and resources will be reduce but also the economies
of different countries around the world will increase.
TRADE
AGREEMENTS BETWEEN DEVELOPED AND DEVELOPING COUNTRIES
As globalization continues to expand throughout the world
we see more and more countries coming together to establish trade agreements in
order to have mutual benefits and therefore improve their economies. But more
than ever the developing countries are seeing the benefits to make trade
agreements with developed countries; (our local example of the FTA between
USA/Colombia).
These agreements benefit both countries because the
developing country will have a much bigger market to sell, must improve their
policies, create more jobs, and make their products and services competitive to
international standards. Also promote a trading mindset in their local
companies and entrepreneurs. However we must highlight that the majority of
these developing countries aren’t ready for these RTA, PTA or FTA with
developed countries. Thus the importance of UNCTAD, WTO and other organizations
to make sure that these agreements become beneficial not only for the developed
countries but also for the developing countries.
Therefore the importance for developing countries to
increase their staff in the trade
ministry, professionals that are ready to negotiate trade agreements, policies
that are up to date with international regulations and most important that the
citizens are ready for these changes.
