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Abstract

This study identifies the effects of free trade agreements at the multilateral (WTO) and regional (FTAA and MERCOSUR-EU) levels on the bovine meat markets in several regions. In order to evaluate these effects, we used a spatial allocation model, presented as a mixed complementarity problem (MCP). The study identifies the changes in production and consumption levels, as well as the changes in producer and consumer surplus, in four possible scenarios. In general, gains to bovine meat producers in the MERCOSUR countries are expected in all scenarios. Although, these gains are greater when we simulate a multilateral trade liberalization, with or without the elimination of subsidies.

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