IMPACTS OF FTAA AND MERCOEURO ON AGRIBUSINESS IN THE MERCOSUL COUNTRIES

Erly Cardoso Teixeira and Luiz Alberto Cypriano

No 25906, 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa from International Association of Agricultural Economists

Abstract: 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 manufactures production. In all scenarios, agricultural trade flows are greatly altered, expanding MERCOSUL agribusiness exports. Economic growth for the MERCOSUL countries increases only in 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.) has strong economic impacts on the MERCOSUL member countries.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 14
Date: 2003
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/25906/files/cp03te01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae03:25906

DOI: 10.22004/ag.econ.25906

Access Statistics for this paper

More papers in 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().