International trade has acquired increasing importance for the Brazilian economy, especially for agribusiness. In this way, understanding other countries policies that affects international trade and its impacts in this country is equally important. The European Union (EU) is one of the most important Brazilian trade partners and it is known by strong interference on its agricultural sector. The recent European enlargement and the last Common Agricultural Policy (CAP) Reform have been studied at different regions of the World but there is a lack of knowledge regarding the impacts of this on Brazilian rural sectors. This paper aims to assess the impacts of the 2004 EU enlargement on Brazilian agribusiness using the general equilibrium model Global Trade Analysis Project (GTAP) under three alternatives scenarios for CAP Reform. The sectoral impacts were more relevant within the EU, as expected, as the measures take place in this region. The aggregate impact of the enlargement with or without decoupling was not important for the Brazilian economy. But it was found that different policies affect some Brazilian agribusiness sectors performance as oilseeds and bovine meat. Exports from these Brazilian sectors grow with enlargement as decoupling takes place, though they decrease under enlargement without decoupling.
international economics;; international trade; general equilibrium; economic integration
