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Regional, multilateral, and unilateral trade policies on MERCOSUR for growth and poverty reduction in Brazil

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Author Info
Harrison, Glenn W.
Rutherford, Thomas F.
Tarr,David
Gurgel, Angelo

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Abstract

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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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3051.

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Date of creation: 31 May 2003
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Handle: RePEc:wbk:wbrwps:3051

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Keywords: Trade Policy; Economic Theory&Research; Rules of Origin; Environmental Economics&Policies; Payment Systems&Infrastructure; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Environmental Economics&Policies; Economic Theory&Research; Trade and Regional Integration; Trade Policy;

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  1. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr & Angelo Gurgel, 2004. "Trade Policy and Poverty Reduction in Brazil," Working Papers Central Bank of Chile 276, Central Bank of Chile. [Downloadable!]
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  2. Nicolas Hérault, 2003. "Mondialisation et pauvreté : les faiblesses des modèles d'équilibre général calculable," Documents de travail 87, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  3. Orlando Gracia & Hernando Zuleta, 2007. "Tratado de libre comercio entre Colombia y Estados Unidos: ¿Qué impacto puede tener en Colombia?," DOCUMENTOS DE TRABAJO 004369, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
  4. Glenn W. Harrison & Thomas F. Rutherford & Tarr,David, 2003. "Rules of thumb for evaluating preferential trading arrangements : evidence from computable general equilibrium assessments," Policy Research Working Paper Series 3149, The World Bank. [Downloadable!]
  5. Orlando Gracia & Hernando Zuleta, 2005. "The Free Trade Agreement between Colombia and USA: What can happen to Colombia?," DEGIT Conference Papers c010_023, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
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  6. Bittencourt, Mauricio V.L. & Kraybill, David L. & Larson, Donald W., 2006. "Consequences Of Trade Liberalization On Poverty And Income Distribution In Brazil," 2006 Annual meeting, July 23-26, Long Beach, CA 21128, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Hertel, Thomas W. & Keeney, Roman & Ivanic, Maros & Winters, L. Alan, 2006. "Distributional effects of WTO agricultural reforms in rich and poor countries," Policy Research Working Paper Series 4060, The World Bank. [Downloadable!]
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  8. Nicita, Alessandro, 2006. "Export led growth, pro-poor or not? Evidence from Madagascar's textile and apparel industry," Policy Research Working Paper Series 3841, The World Bank. [Downloadable!]
  9. Valenzuela, Ernesto & Hertel, Thomas W. & Ivanic, Maros & Pratt, Alejandro Nin, 2004. "Evaluating Poverty Impacts of Globalization and Trade Policy Changes on Agricultural Producers," 2004 Annual meeting, August 1-4, Denver, CO 20242, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Eduardo Amaral Haddad & Fernando Salgueiro Perobelli, 2004. "Trade Liberalization And Regional Inequality: Do Transportation Costs Impose A Spatial Poverty Trap?," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 131, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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  11. Hertel, Thomas W. & Winters, L. Alan, 2005. "Poverty impacts of a WTO agreement : synthesis and overview," Policy Research Working Paper Series 3757, The World Bank. [Downloadable!]
  12. Hertel, Thomas W. & Reimer, Jeffrey J., 2004. "Predicting the poverty impacts of trade reform," Policy Research Working Paper Series 3444, The World Bank. [Downloadable!]
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