Replaced with revised version of paper 12/06/06.

The flow of agricultural products between countries is conditioned by several factors including domestic and trade policy tools for the main competing exporters countries, and macroeconomic variables (such as real income per capita, rate of population growth,etc). Important structural changes...

We analyze the impact of trade liberalization and removal of the federal tax credit in the United States on U.S. and Brazilian ethanol markets using a multi-market international ethanol model calibrated on 2005 market data and policies. The removal of trade distortions induces a 23.9 percent...