Regional, Multilateral, and Unilateral Trade Policies of Mercosur for Growth and Poverty Reduction in Brazil

100 Pages Posted: 20 Apr 2016

See all articles by David G. Tarr

David G. Tarr

International Trade Analysis

Angelo Gurgel

FEARP - Universidade de Sao Paulo

Multiple version iconThere are 2 versions of this paper

Date Written: May 2003

Abstract

Harrison, Rutherford, Tarr, and Gurgel 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.

This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to assess the impact of trade liberalization on poverty.

JEL Classification: F15, F17, F13, F14

Suggested Citation

Tarr, David G. and Gurgel, Angelo Costa, Regional, Multilateral, and Unilateral Trade Policies of Mercosur for Growth and Poverty Reduction in Brazil (May 2003). World Bank Policy Research Working Paper No. 3051. Available at SSRN: https://ssrn.com/abstract=636413

David G. Tarr (Contact Author)

International Trade Analysis ( email )

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Angelo Costa Gurgel

FEARP - Universidade de Sao Paulo ( email )

FEARP/USP, Av. dos Bandeirantes, 3900
Ribeirao Preto, 14040900
Brazil
+55 (16) 36023904 (Phone)

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