Regional, Multilateral, and Unilateral Trade Policies on MERCOSUR for Growth and Poverty Reduction in Brazil
The authors estimate that the Free Trade Agreement of the Americas (FTAA), the EU-MERCOSUR agreement, and multilateral trade policy changes will all be beneficial for Brazil. The Brazilian government strategy of simultaneously negotiating the FTAA...
| Main Authors: | , , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/05/2360832/regional-multilateral-unilateral-trade-policies-mercosur-growth-poverty-reduction-brazil http://hdl.handle.net/10986/18186 |
| Summary: | The authors estimate that the Free Trade
Agreement of the Americas (FTAA), the EU-MERCOSUR agreement,
and multilateral trade policy changes will all be beneficial
for Brazil. The Brazilian government strategy of
simultaneously negotiating the FTAA and the EU-MERCOSUR
agreement, while supporting multilateral liberalization
through the Doha Agenda, will increase the benefits of each
of these policies. The authors estimate that the poorest
households typically gain roughly three to four times the
average for Brazil from any of the policies considerethe
United States protects its most highly protected markets.
Both the FTAA and the EU-MERCOSUR agreements are net
trade-creating for the countries involved, but excluded
countries almost always lose from the agreements. The
authors estimate that multilateral trade liberalization of
50 percent in tariffs and export subsidies results in gains
to the world more than four times greater than either the
FTAA or the EU-MERCOSUR agreement. This shows the continued
importance to the world trading community of the
multilateral negotiations. |
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