Abstract
This study identified the impact of special agricultural safeguards (SSG) for the global market of meat and for the Brazilian economy. The tariff lines (TLs) subject to SSG were selected and the period of analysis was 1995 (when the rules about the SSGs were established) to 2015 (more recent period for which there are notifications). The value of additional tariff was calculated for each of the most important TLs in Brazilian export value and together with the price elasticities for imports, was used to estimate the impacts on imports. Finally, the effect of an increase in Brazilian exports of meat without SSG taxes was calculated as well as its impact in the country’s economy by using an input-output matrix for Brazil. The most important markets that applied SSGs to Brazilian exports were the US for beef and European Union for poultry. However, the additional tariffs could be estimated in only two of the sixteen years that the US applied SSGs on beef imports, suggesting that its use has been enforced when the average annual price has been lower than the trigger price level. Therefore, with the additional tariffs that could be estimated, the results indicated that the impact of the value of the meat that could not be exported to both markets EU and US, due to SSGs was equivalent to BRL 3.7 billion of the economy’s production value (at 2015 prices) and almost BRL 2 billion of the Brazilian GDP.
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Notes
- 1.
The data from China correspond to the sum of the values of Hong Kong, Continental China, Macao and Taiwan.
- 2.
The derivative of this eq. can be found in Orcutt (1950).
- 3.
The difference between y and Y is a value and Y is a vector-type matrix where, in the line corresponding to the meats sector that was not exported by the country, the value y found is included.
- 4.
In the period analyzed (1995–2015) these tariff lines underwent some transformations. Therefore: the LT 02071210 was 02072110; the LT 02071290 was 02072190; the LT 02071410 was 02074110; the LT 02071450 was 02074151; the LT 02071460 was 02074171; the LT 02071470 was 02074171; the tariff line 02072510 was 02072210; the LT 02072710 was 02073931 and; the LT 02073615 was 02074515 and also 02074315.
- 5.
Japan, despite not having a tariff quota for pork meat, submitted a volume SSG usage notification for this product in 1997. This data was not estimated and stands as a mere observation in this study.
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da Costa, C.C., Burnquist, H.L., Guilhoto, J.J.M. (2018). Special Agricultural Safeguards in the International Trade of Meat Analysis and Impacts on the Brazilian Economy. In: Tsounis, N., Vlachvei, A. (eds) Advances in Time Series Data Methods in Applied Economic Research. ICOAE 2018. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-02194-8_28
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