The brazilian chicken meat market in the context of the new regional trade agreements: Trans-pacific and Transatlantic

Abstract

The study aims to examine the possible impacts of the Transpacific and Transatlantic agreements on the Brazilian chicken meat market. The methodology derives from a Spatial Equilibrium Model as a Mixed Complementarity Problem (MCP), based on five alternative scenarios, which aimed to highlight possible changes in the market of chicken meat from the implementation of new trade agreements. The results indicate that, in general, with the implementation of both agreements the Brazilian chicken meat market may invariably cause losses, particularly in relation to production, consequently, affect producers’ prices and surpluses. The most damaging scenarios for Brazil are the formation of the TPP in its broadest form, based on the elimination of tariff and non-tariff barriers, as well as the simultaneous formation of the agreements, in which the country shows a net loss in welfare. From this, we emphasize the importance of negotiating trade agreements to ensure the industry conditions of expansion and access to new markets.

Keywords:
international chicken meat market; trade agreements and regional integration; TPP; TTIP; spatial equilibrium