Impacts of integration of Brazil with the European Union through a general equilibrium model

This study analyses the bilateral trade between Brazil and the European Union (EU) in the period 2002–2012, examining the trade opportunities based on a full integration process. It employs a computable general equilibrium model from the Global Trade Analysis Project (GTAP), aiming at identifying the sectors that would benefit most from the agreement, according to their technological intensity. The results show that Brazil benefits most from the agreement in terms of welfare and would also increase the country's exports of primary products. However, it would cause a decrease in production and exports of products with higher technological intensity, increasing the country's imports from the EU, in line with their comparative advantages.