Analysis of Colombian export harnessing within the framework of the Colombia-Canada Free Trade Agreement (FTA)
Abstract
The general objective of this research is to analyze the leverage of Colombian exports within the framework of the Colombia-Canada Free Trade Agreement (FTA), given that this is the first agreement being reached between Colombia and a developed country in the region. The study uses a mixed methodology; initially describing the international trade agreement between Colombia and Canada by means of a literature review; after that, we identified the bilateral trade trends between the two countries in 2018, and characterized the current tariff conditions with a comparative matrix analysis. Finally, we analyze the Colombian exportable supply against the Canadian demand, with trade indicators such as the IVCR, the trade intensity index, and the complementarity index, in order to identify the sectors in which Colombia has an advantage over Canada. The results of the research show that Canada is not a significant trading partner for Colombia, but it is possible to profit from the comparative advantage in sectors like floriculture, in order to increase exports to the Canadian market.