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GTAP Resources: Resource Display

GTAP Resource #7176

"Trade Agreements, Import Bans, and the Leverage of the E.U. on Reducing Deforestation in Brazil"
by Villoria, Nelson B., Jayson Beckman, Angel Aguilar, Micah Cameron-Harp and Jan Börner

Deforestation in Brazil has become an important issue shaping its trade relationship with the European Union (E.U.). The ratification of the EU-MERCOSUR trade agreement remains stalled because some EU members have expressed worries that enhancing the access of Brazilian products to the EU market may incentivize further land clearing. With or without an EU-MERCOSUR trade agreement, the recently adopted EU deforestation regulation (EUDR) will imply market restrictions for tropical products that caused deforestation. The EUDR bill relies on private actors along the supply chain to help enforce the proposed regulations in their operations in the host countries. Conditioning the ratification of a preferential trade agreement on commitments to reduce deforestation, coupled with trade restrictions that punish products associated with recent land clearing, offers novel and interesting uses of trade policy to achieve environmental goals. The extent to which these policies can succeed will depend on a complex set of market conditions and legal developments, that range from the changing EU market shares of commodities produced in the tropics, to potential legal challenges of the use of trade policy to discriminate among products based on whether they are associated with recent deforestation. This paper investigates the potential effectiveness of the use of trade policy by the EU to reduce deforestation in Brazil.

Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Version: 0.0
Created: Villoria, N. (4/11/2024)
Updated: Villoria, N. (4/11/2024)
Visits: 183
- Climate change policy
- Environmental policies
- Land use
- Trade and the environment

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