Bananas, coffee and palm oil: The trade of agricultural commodities in the framework of the EU-Colombia free trade agreement.

Abstract

Generally, research and studies about commodities focus on price trends, analysis in terms of international competitiveness, market position structure, rate of net exports, market share, and concentration index. This paper has developed an analysis of the most influential agricultural commodities traded from Colombia to European Union, which are bananas, coffee, and palm oil. Analyzing the economic and commercial effects in two traditional agricultural commodities from Colombia (bananas and coffee) with the rise of palm oil as a commodity in the trade relation with its partner; the European Union. The structure draws from the overview of general aspects and the behavior of Colombian foreign trade, as diversification of export products and trade partners, to focus on the characteristics of the trade relationship between the European Union and Colombia. The aim is analyze the proportional relation between bananas, coffee, and palm oil exported to the EU, according to three indicators, the volume of production, exports share, and trade value, from 2008 until 2019, identifying the trends before and after the implementation of the free trade agreement. Finally, with the coefficient correlation, determine the agricultural commodity that has the strongest and positive relationship with the total agricultural exports value from Colombia to the European Union.