Economic effects in Brazil of liberalization of the European Union tariffs of ethanol import

Abstract

This study aims to assess the economic effects in Brazil from elimination of the European Union trade tariffs for bioethanol import. The methodology used is based on the computable general equilibrium approach and in the application of the Global Trade Analysis Project (GTAP). Results show that the liberalization of European tariff barriers regarding bioethanol importations has a positive impact on Brazil economy, namely, at the level of the GDP growth rate, exchange value and on the ethanol sector from sugar cane.