TRADE CREATION AND DIVERSION IN MERCOSUR: THE CASE OF AGRICULTURAL PRODUCTS
Marcelo Jose Braga Nonnenberg, Jorge Cardoso de Mendonça
Abstract
The objective of the present paper is to estimate the trade creation and trade diversion values for the main agricultural imports in Brazil between 1988 and 1996: cotton, rice, corn, wheat, milk, and beef. We will try to separate the effects resulting from the creation of Mercosur from those resulting from the general process of trade opening. This theme is important not only in order to evaluate the implementation of Mercosur or of trade policies, but also for future discussions regarding more general actions of regional integration, such as the ongoing discussions within the European Union or other American countries.
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