IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v79y2020i1p199-232.html

Free Trade Agreements Between Peru, Colombia, and the United States

Author

Listed:
  • Monica P. Lombana

Abstract

This article evaluates the process of negotiating and implementing the U.S.‐Peru and U.S.‐Colombia free trade agreements (FTAs) and analyzes the impact of these agreements on foreign direct investment (FDI) and export diversification in Peru and Colombia. The main finding is that institutional elements in each country uniquely impacted the process of negotiation, implementation, and the outcomes of these FTAs. Colombia benefited from the initial advantage of better institutional capacity and negotiating expertise, while Peru benefited from stronger political leadership and commitment to a bilateral trade agreement with the United States. Both Peru and Colombia have benefited from structured consultation mechanisms with the private sector and non‐government agents, continuity in trade policies throughout different political administrations, and strong political commitment to develop the institutional capacity needed to take full advantage of these FTAs. Furthermore, the implementation of these FTAs has coincided with an expansion of non‐traditional exports from Peru and Colombia, and an increase in FDI into sectors other than commodities such as oil, natural gas, and minerals.

Suggested Citation

  • Monica P. Lombana, 2020. "Free Trade Agreements Between Peru, Colombia, and the United States," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(1), pages 199-232, January.
    • Handle: RePEc:bla:ajecsc:v:79:y:2020:i:1:p:199-232
    DOI: 10.1111/ajes.12312
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ajes.12312
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ajes.12312?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ricardo Hausmann & Bailey Klinger, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," CID Working Papers 128, Center for International Development at Harvard University.
    2. Jeffrey J. Schott (ed.), 2004. "Free Trade Agreements: US Strategies and Priorities," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 375, April.
    3. Atish R. Ghosh & Jonathan D. Ostry, 1994. "Export Instability and the External Balance in Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 41(2), pages 214-235, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Berihu Assefa & Kiflu Gedefe, 2016. "An Economic Inquiry into Ethiopian Exports: Pattern, Characteristics, Dynamics and Survival," Working Papers 014, Policy Studies Institute.
    2. Heiko Hesse, 2008. "Export Diversification and Economic Growth," World Bank Publications - Books, The World Bank Group, number 28040, April.
    3. Rahul Anand & Ms. Kalpana Kochhar & Mr. Saurabh Mishra, 2015. "Make in India: Which Exports Can Drive the Next Wave of Growth?," IMF Working Papers 2015/119, International Monetary Fund.
    4. Saurabh Mishra & Robert Koopman & Giuditta De-Prato & Anand Rao & Israel Osorio-Rodarte & Julie Kim & Nikola Spatafora & Keith Strier & Andrea Zaccaria, 2021. "AI Specialization for Pathways of Economic Diversification," Papers 2103.11042, arXiv.org.
    5. Gerardo Fujii-Gambero & Manuel García-Ramos, 2015. "Revisiting the quality of exports," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-17, December.
    6. Aye Mengistu, Alemu, 2009. "Determinants of Vertical and Horizontal Export Diversification: Evidences from Sub-Saharan Africa and East Asia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 17(2), pages 107-107, August.
    7. Arnold McIntyre & Mike Xin Li & Ke Wang & Hanlei Yun, 2018. "Economic Benefits of Export Diversification in Small States," IMF Working Papers 2018/086, International Monetary Fund.
    8. Otchia, Christian S., 2015. "Mining-based growth and productive transformation in the Democratic Republic of Congo: What can an African lion learn from an Asian tiger?," Resources Policy, Elsevier, vol. 45(C), pages 227-238.
    9. Mikhail Y. Afanasyev & Alexander V. Kudrov, 2021. "Economic Complexity, Embedding Degree and Adjacent Diversity of the Regional Economies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 17(2), pages 7-22.
    10. Edurne Magro Montero & Mari Jose Aranguren & Mikel Navarro, 2011. "Smart Specialisation Strategies: The Case of the Basque Country," Working Papers 2011R07, Orkestra - Basque Institute of Competitiveness.
    11. Lütkenhorst, Wilfried, 2018. "Creating wealth without labour? Emerging contours of a new techno-economic landscape," IDOS Discussion Papers 11/2018, German Institute of Development and Sustainability (IDOS).
    12. Agata Antkiewicz & John Whalley, 2005. "China's New Regional Trade Agreements," The World Economy, Wiley Blackwell, vol. 28(10), pages 1539-1557, October.
    13. Lyubimov, Ivan & Gvozdeva, Margarita & Lysyuk, Maria, 2018. "Towards increased complexity in Russian regions : networks, diversification and growth," BOFIT Discussion Papers 8/2018, Bank of Finland, Institute for Economies in Transition.
    14. Gian Maria Milesi Ferretti & Assaf Razin, 1999. "Current Account Deficits and Capital Flows in East Asia and Latin America: Are the Early Nineties Different From the Early Eighties," NBER Chapters, in: Changes in Exchange Rates in Rapidly Developing Countries: Theory, Practice, and Policy Issues, pages 57-108, National Bureau of Economic Research, Inc.
    15. Evgeniy Kutsenko & Sabyasachi Tripathi & Kirill Tyurchev, 2023. "Does complementarity matter for the emergence of new specialization industries in the regions of Russia?," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(9), pages 2126-2155, December.
    16. Dehghan Khavari, Saeed & Mirjalili, Seyed hossein, 2018. "مگرایی و واگرایی دولت های توسعه یافته و درحال توسع [Convergence and Divergence Between Developing and Developed States]," MPRA Paper 125623, University Library of Munich, Germany, revised 02 Jan 2019.
    17. Nomaler, Önder & Verspagen, Bart, 2022. "Some new views on product space and related diversification," MERIT Working Papers 2022-011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Sami Atallah & Ilina Srour, 2014. "The Emergence of Highly Sophisticated Lebanese Exports in the Absence of an Industrial Policy," Working Papers 876, Economic Research Forum, revised Nov 2014.
    19. Fernández-Arias, Eduardo & Jaramillo, Fidel & Agosin, Manuel R. & Sánchez, Gabriel & Butler, Inés & Blyde, Juan S. & Pinheiro, Armando Castelar & Daude, Christian & Cueva Armijos, Simón & Albornoz, Vi, 2009. "Growing Pains: Binding Constraints to Productive Investment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 305, November.
    20. Idsardi, E.F. & Schalkwyk, H.D. & Viviers, W., 2015. "The Agricultural Product Space: Prospects for South Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 211752, International Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajecsc:v:79:y:2020:i:1:p:199-232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.