Brazilian Trade Policy in Historical Perspective: Constant Features, Erratic Behavior

Abstract

Historical essay on Brazilian trade policies since the 19th century, seen in connection with industrial and development policies that were implemented not always in a coordinated manner. Brazil was, and probably continues to be, one of the most protectionist countries in the world, at the beginning for fiscal reasons (financing of the State), then, in the 20th century, on behalf of deliberate industrializing and import substitution goals. The essay surveys the many policies followed in different phases of Brazilian economic history, including the regional integration process of Mercosur and the multilateral and hemispheric trade negotiations; it also discusses the recent re-commoditization of its foreign trade and the retrocession to a series of patently defensive policies, justified by a lack of competitiveness of its industries, by the way due to the excessive taxation and the bureaucratic entanglements set up by the very State that seeks to protect those industries from foreign competition.

Outline:

Introduction: basic characteristics

Historical development of Brazilian trade policies

Reform and adjustment to the multilateral trade system

Regional integration process and the Mercosur path

Real challenges and lost opportunities: Brazilian illusions and deceptions

What went wrong? Brazil retrocedes into protectionism

What lies ahead: a fortress Brazil or an opening to globalization?

Keywords: Trade policy; Brazilian economic policy; industrialization; development; economic history

JEL Classification: N, O