Impact of the Free Trade Agreement with USA on the competitiveness of Colombian agricultural sector: Cases of rice and maize
Keywords:
Competitiveness, trade agreements, agriculture, subsidiesAbstract
To strengthen economic integration with some countries, Colombia has signed a series of trade agreements to expand the borders of foreign trade, ensure the output of many products and improve access to their respective markets, one of them is the Free Trade Agreement (FTA) with USA. However, we should assess its impact on certain productive sectors such as rice and maize, important to ensure food security of the population and the national agricultural production, but in the long time could be vulnerable to implementation of this agreement, affecting the welfare of producers. To this end a method of equations of two unknowns will be used to analyze the effects on production and imports variable exchange rate, TLC, domestic price and international interest rate and GDP per capita. To develop this methodology will be used a gravitational model, which allows analyzing the force of gravity of rice and maize imports from the USA in the country’s agricultural production and in the Colombian market.
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