The colombia-canada free trade area: a partial equilibrium simulation

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DOI: https://doi.org/10.22395/seec.v15n31a1
Keywords:
Preferential trade agreement, trade creation, welfare effects, partial equilibrium simulation

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Catherine Pereira Villa
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Daniel Gómez Abella
University of La Sabana image/svg+xml
Luis Omar Herrera
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Abstract

This paper uses disaggregated trade data for 2010 and applies ex-ante partial equilibriummodeling to calculate the impact of the preferential trade agreement between Canadaand Colombia. The simulations carried out show aggregate trade creation could be oneand a half times larger than trade diversion; trade between the two countries in the firstyear of the agreement could grow by approximately ten percent and will be focussed ona small number of goods; trade diversion is stronger with the largest trading partner ofeach signatory, namely the United States; and trade diversion is not strong in the caseof Colombia’s neighbors with which there was significant trade prior to the agreement

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Article Details

Issue

Vol. 15 No. 31 (2012)

Section

Articles

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Author Biographies

Catherine Pereira Villa, University of La Sabana

M.A. in Economics and International Relations, University of Aberdeen, Aberdeen, United Kingdom;M.Sc. in Economics as part of the Scottish Doctoral Programme and M.Phil. in International Finance,University of Glasgow, Glasgow, United Kingdom; Assistant Professor, International School of Economicsand Administrative Sciences, Universidad de La Sabana, Colombia

Daniel Gómez Abella, University of La Sabana

B.A. and M.A. in Economics, Universidad de Los Andes, Bogotá, Colombia; Lecturer, International Schoolof Economics and Administrative Sciences, Universidad de La Sabana

Luis Omar Herrera, University of La Sabana

B.A. in Economics, Universidad de los Andes; Lecturer, International School of Economics and AdministrativeSciences, Universidad de La Sabana

How to Cite

Pereira Villa, C., Gómez Abella, D., & Herrera, L. O. (2014). The colombia-canada free trade area: a partial equilibrium simulation. Semestre Económico, 15(31), 15-42. https://doi.org/10.22395/seec.v15n31a1

References