This paper discusses the main effects of free trade agreements on the dairy sector in Brazil. A partial equilibrium model formulated as a Mixed Complementary Problem (MCP) is used to provide some numerical examples of changes (potential gain and losses) in terms of production, trade and welfare in each scenario. This model also considers a multiregional and a multi-product dimension, which permits to analyze the impact of trade liberalization upon different regions and diverse processed dairy products.
Mixed Complementary Problem (MCP); partial equilibrium models; dairy sector; and multiregional and multi-product analysis
