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Free Trade Area of the Americas. An impact Assessment for Colombia

Miles Kenneth Light () and Thomas Fox Rutherford ()

Archivos de Economía from Departamento Nacional de Planeación

Abstract: This paper describes how entrance into the Free Trade of Americas Agreement may impact the Colombia’s economy and public welfare. Our central tool for this analysis is a global Computable General Equilibrium (CGE) model of trade and production. We focus primarily upon the economic interaction between Colombia and key trading partners. These partners are: USA, European Union, and other Andean Pact countries. We find that Colombia does not stand to gain substantially from an FTAA-style agreement. Since Colombia already enjoys preferential access to key trading partners, the benefits from increased access to foreign markets is positive, but small.

Date: 2003-04-16
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Handle: RePEc:col:000118:002744