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Agricultural Exporters in a Protectionist World: Review and Policy Implications of Barriers Against Mercosur


  • Julio J. Nogues

    (Universidad Di Tella)


Worldwide, the Mercosur countries are probably the ones that face the most hostile trading system. Their strong comparative advantage in temperate agricultural and agro-industrial products make them particularly vulnerable to the irrationally high and variable agricultural protectionism cum subsidies that continues to distort this trade. In retrospect the paper argues that signing the Uruguay Round Agreement on Agriculture was a kiss of death for the development prospects of these countries. Likewise, the continued expansion of regional policies and particularly that practiced by the EU, continues to reduce export earnings of Mercosur. The paper presents a selected survey of the literature as well as new estimates on these and other effects including the financial consequences that agricultural protectionism has on Mercosur; their ability to sustain and service their external debts. Based on the findings, the paper concludes with some policy suggestions which at best represent defensive opportunities. Nothing would boost more the development prospects of these countries than a comprehensive and ambitious multilateral agreement to reduce agricultural protectionism. Nevertheless given the highly protectionist stance of the US and EU, the prospects that this will materialize anytime soon are dim.
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  • Julio J. Nogues, 2005. "Agricultural Exporters in a Protectionist World: Review and Policy Implications of Barriers Against Mercosur," International Trade 0502002, EconWPA.
  • Handle: RePEc:wpa:wuwpit:0502002
    Note: Type of Document - pdf; pages: 64

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    References listed on IDEAS

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    Cited by:

    1. Vito Tanzi, 2005. "Building regional infrastructure in Latin America," INTAL Working Papers 2642, Inter-American Development Bank, INTAL.
    2. Anneke Jessen & Christopher Vignoles, 2005. "Jamaica: trade, integration and the quest for growth," INTAL Working Papers 1264, Inter-American Development Bank, INTAL.
    3. Marcelo de Paiva Abreu, 2005. "The FTAA and the political economy of protection in Brazil and the US," Textos para discussão 494, Department of Economics PUC-Rio (Brazil).
    4. Manuel Orozco & Rachel Fedewa, 2007. "Leveraging efforts on remittances and financial intermediation," INTAL Working Papers 1448, Inter-American Development Bank, INTAL.
    5. Elsnit, 2005. "Second Annual Conference of the Euro-Latin Study Network on Integration and Trade, ELSNIT : Issues papers," INTAL Working Papers 2414, Inter-American Development Bank, INTAL.
    6. Eric T. Miller, 2005. "Achievements and challenges of trade capacity building : a practitioner's analysis of the CAFTA process and its lessons for the multilateral system," INTAL Working Papers 1268, Inter-American Development Bank, INTAL.
    7. Vito Tanzi, 2005. "The production and financing of regional public goods," INTAL Working Papers 2824, Inter-American Development Bank, INTAL.
    8. Luis A. Arias & Alberto Barreix & Alexis Valencia & Luiz Villela, 2005. "The harmonization of indirect taxes in the Andean Community," INTAL Working Papers 2820, Inter-American Development Bank, INTAL.
    9. Robert Devlin & Ziga Vodusek, 2005. "Trade related capacity building : an overview in the context of Latin American trade policy and the MERCOSUR-EU association agreement," INTAL Working Papers 1262, Inter-American Development Bank, INTAL.
    10. Juan S. Blyde, 2006. "Assessing the impacts of intellectual property rights on trade flows in Latin America," INTAL Working Papers 1274, Inter-American Development Bank, INTAL.

    More about this item


    Mercosur; Agricultural Protectionism; Doha Round; Regional Negotiations;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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