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

摘要

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.