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Non Tariff Barriers to Trade in Mercosur: Focusing Brazilian Exports of Steel Products

IPEA Discussion Paper No. 792

43 Pages Posted: 15 Nov 2001  

Marcio de Oliveira Júnior

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC)

Date Written: May 2001

Abstract

The main aim of this paper is to identify and to analyze the presence of Non Tariff Barriers (NTBs) imposed to Brazilian exports of steel products by Mercosur's member countries. The NTBs were identified through interviews with Brazilian companies and through questionaries sent to Brazilian firms that export over one hundred thousand dollars yearly. Brazilian companies did not identify any NTBs imposed by Paraguay and Uruguay. Argentina, the second largest steel producer in Mercosur, is the only trade partner that uses NTBs when trading steel products with Brazil. This happens because Argentina, in order to avoid a sharp drop in its domestic production, had to protect its firms from external competition after the fall in its internal demand. The Argentine alternative strategy to avoid reducing domestic production would be to raise exports. This became difficult since world prices and demand fell after the Asian Crisis and since Argentine prices are not competitive when compared to its Asian and Eastern European counterparts. The main NTBs imposed by Argentina identified by Brazilian companies are of four types: a) safety and industrial standards and regulations; b) antidumping duties; c) discriminatory bilateral agreements; and d) customs clearance procedures.

JEL Classification: F1

Suggested Citation

de Oliveira Júnior, Marcio, Non Tariff Barriers to Trade in Mercosur: Focusing Brazilian Exports of Steel Products (May 2001). IPEA Discussion Paper No. 792. Available at SSRN: https://ssrn.com/abstract=290269 or http://dx.doi.org/10.2139/ssrn.290269

Marcio De Oliveira Júnior (Contact Author)

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC) ( email )

Av. Presidente Antonio Carlos 51
10 Andar Centro
Rio de Janeiro RJ 20020-010
Brazil
+55 21 2121144 (Phone)
+55 21 2401920 (Fax)

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