The effects of the free trade agreement between Colombia and the European Union on Colombian foreign trade

This thesis presents the historical evolution of the global trade policies and the role of the EU and developing countries within it. The paper analyzes the evolution of the interaction between the EU and developing countries within the GATT/WTO trade liberalization frame policies and its impact on development. Also highlights different perspectives and theoretical concepts of the role of the EU and developing countries in the history and evolution of the multilateral trading system. Tradedevelopment in a developingcountryafter the implementation of a Free Trade Agreementwith the EU is analyzed by means of a Cluster Analysis and a Descriptive Analysis, using statistical software, upon the last 8 years of trade between Colombia and the EU. The time frame encloses the same amount of years prior and after the FTA implemented with the block in 2013. Hence the analysis compiles exports and imports data between both partners from 2009 to 2017. The analysis is followed by a discussion over both the benefits and limitations of the resulting provisions examining the impact of the Bilateral Trade Agreement, its potential value and challenges. The principal finding of this study reveals that the FTA between Colombia and the EU positively influenced Colombian development, howeverto establish the real impact over its trade development and economic growth the studied data is not sufficient. Furthermore, the global conditions and the situation of the country during the analysed period proved to be of higher relevance for the country's economy than the conditions agreed in the FTA. In conclusion the current study suggests that trade agreements do have a positive impact on growth of development but are highly determined by the efficiency of the production systems and internal policies. Also the study recommends thatan analysis on a longer period of time would retrieve more accurate results.