Commercial barriers protect economies from international competition; however they distort the commercial relationship between them, and reduce the benefits that could result from free trade. The objective of this paper is to determine the impacts that the Free Trade Area of the Americas (FTAA), with its progressive tariff reduction, would have on the Brazilian economy. The Global Trade Analysis Project (GTAP), general equilibrium model, is used as a methodological instrument. Few agribusiness sectors would be competitive under the FTAA. The manufacturing sector would not be competitive under any of the scenarios. Industries like forestry, textiles and footwear would undergo a significant increase in production and exports. Brazilian Economic growth and welfare indicators are favorable to Brazil in all scenarios, even through growth was modest.
FTAA; tariff reduction; Brazil; GTAP
