The U.S.-Colombia Trade Promotion Agreement was signed on November 22, 2006, in Washington, D.C. This comprehensive trade agreement eliminated tariffs and other barriers to goods and services. Currently, no U.S. agricultural exports enjoy tariff-free access to the Colombian market. If the United States has a comparative advantage in agricultural, which of the following is TRUE?

Question

Quizplus · Accepted Answer

BA) Colombian agricultural producers were likely better off before free trade because the elimination of tariffs on U.S. agricultural products would increase competition for them in their local market, potentially reducing their market share and profits.B) Colombian agricultural consumers are likely better off after the implementation of free trade, as the elimination of tariffs on U.S. agricultural products would lead to lower prices and more choices for consumers. However, the statement in the question is framed in a way that suggests the opposite of what is generally true; thus, it seems there's a misunderstanding in interpreting the question's intent. Given the context, it's more accurate to say consumers benefit from free trade due to increased access to goods.

The US-Colombia Trade Promotion Agreement Was Signed on November 22, 2006