Free trade in financial services between the United States and Colombia would add to the impacts of free trade in products by generating additional income and employment effects directly, as well as by supporting the growth of production and exporting in both countries through stimulating financial flows. The expected impact of free trade in financial services can be divided into impacts on commercial banking and on investment banking, and then impacts on bilateral financial flows and on trade financing in particular. This study shows that, not unexpectedly, impact on the U.S. economy would be quite limited, while Colombia's financial sector could be very positively affected in terms of employment, income, and lower cost and greater availability of financial services. An important unmeasurable effect of a possible free trade agreement is the likely outcome of greater confidence in Colombian laws that permit private sector business and foreign business to operate relatively freely.
ASJC Scopus subject areas
- Economics and Econometrics