ARTICULO Y VIDEO

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.