Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE
In 2010, after several years of being stalled, negotiations between MERCOSUR (the Common Market of the Southern Cone) and the European Union (EU) to build a free-trade agreement (FTA) were resumed. This FTA is expected to have an important impact on MERCOSUR economies, especially if both blocs reach...
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2012
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| Acceso en línea: | https://hdl.handle.net/10568/154030 |
| _version_ | 1855528162532786176 |
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| author | Estrades, Carmen |
| author_browse | Estrades, Carmen |
| author_facet | Estrades, Carmen |
| author_sort | Estrades, Carmen |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | In 2010, after several years of being stalled, negotiations between MERCOSUR (the Common Market of the Southern Cone) and the European Union (EU) to build a free-trade agreement (FTA) were resumed. This FTA is expected to have an important impact on MERCOSUR economies, especially if both blocs reach an agreement regarding the agricultural sector. This paper analyzes the impact of an FTA between MERCOSUR and EU, with a special focus on distributional impacts on Uruguay. For this we apply an improved version of MIRAGE (Modeling International Relationships in Applied General Equilibrium) with household heterogeneity. The representative agent in the standard version of the MIRAGE model is decomposed into a private and a public agent for all regions, and into a high number of households for Uruguay. Results show that a trade agreement between MERCOSUR and EU would have a significant impact on trade flows between both blocs. MERCOSUR economies would increase agriculture exports to EU and industrial imports from EU. Welfare increases in all countries participating in the agreement but is more pronounced for the two small countries of MERCOSUR: Paraguay and Uruguay. In Uruguay, welfare increases for different categories of households, but the richest households benefit the most. In spite of this, inequality decreases as a consequence of the agreement, and poverty rates decrease throughout the country. |
| format | Artículo preliminar |
| id | CGSpace154030 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2012 |
| publishDateRange | 2012 |
| publishDateSort | 2012 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1540302025-11-06T06:31:14Z Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE Estrades, Carmen computable general equilibrium models trade agreements poverty mercosur trade liberalization models households inequality In 2010, after several years of being stalled, negotiations between MERCOSUR (the Common Market of the Southern Cone) and the European Union (EU) to build a free-trade agreement (FTA) were resumed. This FTA is expected to have an important impact on MERCOSUR economies, especially if both blocs reach an agreement regarding the agricultural sector. This paper analyzes the impact of an FTA between MERCOSUR and EU, with a special focus on distributional impacts on Uruguay. For this we apply an improved version of MIRAGE (Modeling International Relationships in Applied General Equilibrium) with household heterogeneity. The representative agent in the standard version of the MIRAGE model is decomposed into a private and a public agent for all regions, and into a high number of households for Uruguay. Results show that a trade agreement between MERCOSUR and EU would have a significant impact on trade flows between both blocs. MERCOSUR economies would increase agriculture exports to EU and industrial imports from EU. Welfare increases in all countries participating in the agreement but is more pronounced for the two small countries of MERCOSUR: Paraguay and Uruguay. In Uruguay, welfare increases for different categories of households, but the richest households benefit the most. In spite of this, inequality decreases as a consequence of the agreement, and poverty rates decrease throughout the country. 2012 2024-10-01T13:59:03Z 2024-10-01T13:59:03Z Working Paper https://hdl.handle.net/10568/154030 en Open Access application/pdf International Food Policy Research Institute Estrades, Carmen. 2012. Is MERCOSUR’s External Agenda Pro-Poor? An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE. IFPRI Discussion Paper 1219. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/154030 |
| spellingShingle | computable general equilibrium models trade agreements poverty mercosur trade liberalization models households inequality Estrades, Carmen Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE |
| title | Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE |
| title_full | Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE |
| title_fullStr | Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE |
| title_full_unstemmed | Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE |
| title_short | Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE |
| title_sort | is mercosur s external agenda pro poor an assessment of the european union mercosur free trade agreement on poverty in uruguay applying mirage |
| topic | computable general equilibrium models trade agreements poverty mercosur trade liberalization models households inequality |
| url | https://hdl.handle.net/10568/154030 |
| work_keys_str_mv | AT estradescarmen ismercosursexternalagendapropooranassessmentoftheeuropeanunionmercosurfreetradeagreementonpovertyinuruguayapplyingmirage |