La política comercial agropecuaria colombiana en el contexto internacional

Abstract

This paper argues that the protection of the agricultural sector in Colombia has been unstable since the country opened up its economy and, except for a few products, the effective protection is now low due to the effects of the free trade agreements in place. Compared to OECD and other Latin American countries, general service support is very limited. Direct producer support, provided by protection and some fiscal resources, is more important, but it is highly dependent on the real exchange rate: it tends to increase when the exchange rate appreciates, and to fall when it depreciates. The paper also argues that several products there is a need for measures to face international markets (and thus prices) that are not transparent, due to government interventions by other countries. On the basis of these considerations, it proposes public sector policies in four areas: larger general service support; an ambitious strategy to diversify agricultural exports; prudent management of remaining protection; and novel policies to manage international price cycles and perhaps a mechanism to partially stabilize the effects of exchange rate fluctuations on the sector.