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

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Catherine Pereira Villa
Daniel Gómez Abella
Luis Omar Herrera


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

Cómo citar
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.

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Biografía del autor/a

Catherine Pereira Villa, Universidad de 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, Universidad de 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, Universidad de la Sabana

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