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Financial Services and Preferential Trade Agreements
could interact directly with negotiators of the different topics. They were scheduled to last for one complete morning or afternoon, and the negotiators were obliged to give due consideration to all proposals or questions posed by civil society. Regarding financial topics, a good example of civil society participation was the specific request made by the productive sector to accept the U.S. proposal under which Colombia should permit its residents to buy insurance products abroad. The argument was that a change of Colombian legislation to allow different industries to choose where to buy their insurance products (locally or in the United States) would enhance industry efficiency and competitiveness. The negotiators took the request into account, and the government undertook commitments that allowed Colombian residents to buy most insurance products from insurance companies established in Ecuador, Peru, or the United States, beginning four years after the agreement came into force.
The Private Financial Sector’s Preparation and Position Regarding the FTA In preparation for the negotiations on financial services and to ensure coordinated and frequent interaction with the government’s negotiating team at various levels, the associations representing the financial sector formed a group led by the Banking Association (Asobancaria). The Colombian Insurance Federation (Fasecolda); the Trusts Association (Asofiduciarias); the Colombian Stock Exchange (Bolsa de Valores de Colombia, or BVC); the Exchange Institutions Association (Asocambiaria); the Colombian Federation of Leasing Companies (Fedeleasing); and the Association of Commercial Financing Companies (Asociación de Compañías de Financiamiento Comercial) were all part of this group. Not all financial associations had equal importance and representation; in some cases, conflicting interests resulted in their taking different positions regarding the FTA negotiations. For instance, in capital markets, the BVC asked for some degree of protection for market infrastructure or at least a gradual liberalization process, whereas the remaining bodies supported greater foreign competition. In the end, evidence showed that the most active associations during the negotiations were Asobancaria, Fasecolda, and Asofiduciarias. Additionally, to prepare technically for the negotiation and to have their own position on defensive and offensive interests, the associations hired Fedesarrollo19 and the Asociación Nacional de Instituciones Financieras (National Association of Financial Institutions, or ANIF) to undertake a