The effects of trade barriers on Brazilian dairy exports between 2007 and 2016

Abstract

The Brazilian agroindustrial exports have become increasingly imperative for the economy and to meet the food demands of the worldwide population. However, these commodities are subject to heavy unilateral trade barriers, serving as an example the world dairy market. In contrast, international trade forums seek to encourage multilateral agreements between countries at the expense of protectionism. In the case of Brazil, we have observed a series of restrictions on the dairy trade that result in a reduction in the total volume traded. Given these factors, this study sought to examine the regulatory environment of international trade in dairy products in an attempt to understand how the main determinants of national exports act on their respective nominal values. From the construction of gravitational models for panel data, the results found did not rule out the hypothesis of negative correlation between variations in the level of tariff protection and export performance, and other predictors considered, among them, geographical distance and world income were presented equally significant for the determination of dairy exports