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Abstract
This paper discusses the main effects of free trade agreements on the dairy
sector in Brazil. A partial equilibrium model formulated as a Mixed Complementary
Problem (MCP) is used to provide some numerical examples of changes (potential gain
and losses) in terms of production, trade and welfare in each scenario. This model also
considers a multiregional and a multi-product dimension, which permits to analyze
the impact of trade liberalization upon different regions and diverse processed dairy
products.