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Assessing agricultural trade policies options with the European Union: a Brazilian perspective

Author

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  • Marie Gabrielle Piketty
  • Lucie Weissleder
  • Hildo Meirelles De Souza Filho
  • Mário Otávio Batalha
  • Marcel Adenäuer
  • Arno Becker

Abstract

Brazil has shown interest in agricultural trade negotiations at bilateral, regional, and multilateral levels. This study addresses several important negotiations, using the agricultural sector model CAPRI (Common Agricultural Policy Regional Impact Analysis), to analyze liberalization scenarios between the European Union and the Mercosur countries focusing particularly on their impacts in Brazil. Four possible agreements between Europe and Mercosur are simulated, including a broader multilateral agreement proposed in the G20. The results suggest that a bilateral scenario involving larger tariff rate quota increase, as called for by Mercosur, generates larger gains than accepting the European Union proposal of 2004 or further multilateral trade liberalization based on the G20 proposal. However, much larger increases in tariff rate quotas for all products are not necessarily justified in all cases. Moreover, Brazil's production and export potential is limited by factors other than trade restrictions.

Suggested Citation

  • Marie Gabrielle Piketty & Lucie Weissleder & Hildo Meirelles De Souza Filho & Mário Otávio Batalha & Marcel Adenäuer & Arno Becker, 2009. "Assessing agricultural trade policies options with the European Union: a Brazilian perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 447-457, July.
    • Handle: RePEc:bla:agecon:v:40:y:2009:i:4:p:447-457
    DOI: 10.1111/j.1574-0862.2009.00390.x
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    References listed on IDEAS

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    1. de Menezes, Tatiane Almeida & Piketty, Marie-Gabrielle, 2007. "Possible regional impacts of agricultural trade liberalization in Brazil: some insights based on the estimation of soybean supply function," 106th Seminar, October 25-27, 2007, Montpellier, France 7930, European Association of Agricultural Economists.
    2. Heckelei, Thomas & Mittelhammer, Ronald C. & Jansson, Torbjorn, 2008. "A Bayesian Alternative To Generalized Cross Entropy Solutions For Underdetermined Econometric Models," Discussion Papers 56973, University of Bonn, Institute for Food and Resource Economics.
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    5. Waquil, Paulo Dabdab & Alvim, Augusto Mussi, 2006. "Acordos comerciais e o setor produtivo de carne bovina: estimativas de ganhos para o Mercosul," Revista de Economia e Agronegócio / Brazilian Review of Economics and Agribusiness, Federal University of Vicosa, Department of Agricultural Economics, vol. 4(2), pages 1-22.
    6. Masakazu Watanuki & Marcos Sawaya Jank & Mário Queiroz de Monteiro Jales & Paulo F. Azevedo & Josefina Monteagudo & Elizabeth Farina & Sherman Robinson & Fabio R. Chaddad & Ian Fuchsloch & Sílvia Hele, 2004. "Agricultural Trade Liberalization: Policies and Implications for Latin America," IDB Publications (Books), Inter-American Development Bank, number 65278 edited by Marcos Sawaya Jank, February.
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    2. Mittenzwei, Klaus & Britz, Wolfgang & Wieck, Christine, 2014. "Does the “green box” of the European Union distort global markets?," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(1), pages 1-20, April.
    3. Wunderlich, A.C. & Kohler, A., 2018. "Using empirical Armington and demand elasticities in computable equilibrium models: An illustration with the CAPRI model," Economic Modelling, Elsevier, vol. 75(C), pages 70-80.
    4. Listorti, Giulia & Kempen, Markus & Girardin, Jean & Kranzlein, Tim, 2011. "Do Price Uncertainties Affect the Use of Policy Flexibilities? The Selection of Sensitive Products in WTO Agricultural Negotiations," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114381, European Association of Agricultural Economists.
    5. Martin Henseler & Ruth Delzeit & Marcel Adenäuer & Sarah Baum & Peter Kreins, 2020. "Nitrogen Tax and Set-Aside as Greenhouse Gas Abatement Policies Under Global Change Scenarios: A Case Study for Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 299-329, July.

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