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The Free Trade Agreement between Colombia and USA: What can happen to Colombia?

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  • Hernando Zuleta
  • Orlando Gracia

Abstract

In order to assess the impact of a Free Trade Agreement (FTA) between Colombia and the United States of America, we describe the characteristics of the Colombian economy emphasizing its trade patterns and perspectives and identifying the sectors and regions that are likely to be the most sensitive to a FTA. We argue that the effects of a bilateral trade agreement between the USA and Colombia would be similar to those of past trade reforms. We first analyze the effect of past reforms over a diverse sample of countries such as Chile, Colombia and Mexico and then, using an applied general equilibrium model, simulate the effects over the Colombian economy of a bilateral agreement with USA. The simulations show that, although small, there is an increase in welfare and production of the Colombian consumers and firms.

Suggested Citation

  • Hernando Zuleta & Orlando Gracia, 2004. "The Free Trade Agreement between Colombia and USA: What can happen to Colombia?," Investigación Económica en Colombia 3594, Fundación Pondo.
    • Handle: RePEc:col:000100:003594
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    Cited by:

    1. Paolo Giordano & Norberto Iannelli & Christian Volpe Martincus & Luiz Arruda Villela, 2006. "Colombia: Nota sectorial sobre Comercio e Integración," IDB Publications (Working Papers) 9250, Inter-American Development Bank.
    2. Christian Volpe Martincus & Sandra Milena Gómez, 2009. "Trade Policy and Export Diversification: What Should Colombia Expect from the FTA with the United States," IDB Publications (Working Papers) 9292, Inter-American Development Bank.
    3. Volpe Martincus, Christian & Gómez, Sandra Milena, 2009. "Trade Policy and Export Diversification: What Should Colombia Expect from the FTA with the United States," IDB Publications (Working Papers) 2498, Inter-American Development Bank.
    4. Giordano, Paolo & Iannelli, Norberto & Volpe Martincus, Christian & Villela, Luiz Arruda, 2006. "Colombia: Nota sectorial sobre Comercio e Integración," IDB Publications (Working Papers) 2446, Inter-American Development Bank.

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