Impacts of FTAA and Mercoeuro on agribusiness in the Mercosul countries

Focusing on changes in agricultural policy, this paper examines the economic impacts on MERCOSUL member country economies arising from the creation of the Free Trade Area of the Americas (FTAA) and a free trade area between MERCOSUL and the European Union (MERCOEURO). Four simulations are run using the Global Trade Analysis Project’s (GTAP) applied general equilibrium model. The results suggest these new trade alliances would cause an increase in MERCOSUL agribusiness production and a decrease in MERCOSUL manufactures production. In all simulations, agricultural trade flows are greatly altered and the exportation of MERCOSUL agribusiness products expands. However, the MERCOSUL countries experience overall economic growth in only the MERCOEURO scenarios. The elimination of agriculture production and export subsidies by members of the North American Free Trade Area (NAFTA) and European Union (E.U.) would have strong economic impacts on the economies of MERCOSUL countries

Agribusiness · Agriculture · Applied general equilibrium · Economic integration · Economics · European union · Exportation · General equilibrium theory · Geography · International economics · International free trade agreement · International trade · Macroeconomics · Market economy · Production (economics) · Subsidy · Agricultural Economics and Policy · Global Trade and Competitiveness · Global trade and economics

• Análise de cenários do agronegócio brasileiro frente à China, aos EUA e à UE, utilizando um modelo de equilíbrio geral computável

  Open Access•Jurandir Luiz Buchmann, Angélica Massuquetti et al.•Revista de Economia e Sociologia…•2021

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