Special Agricultural Safeguards in the International Trade of Meat Analysis and Impacts on the Brazilian Economy
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.
KeywordsBeef Poultry meat SSG tariff Input-output matrix Brazil
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