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Abstract

This paper discusses the perspectives to production, exports, imports, prices and welfare levels (producer surplus and consumer surplus) to the beef sector in the MERCOSUR facing some scenarios of tariffs reductions at the multilateral and regional levels. We use a Spatial Allocation Model formulated as a Mixed Complementarity Problem. We got a base scenario for the world markets, and then we simulated scenarios with reductions of tariffs. In the base scenario, MERCOSUR and Oceania are exporters and the other regions produce for domestic consumption, and some of them are importers. When we analyze the aggregate welfare level in MERCOSUR, the multilateral free trade is the scenario that brings the highest benefits.

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