This study evaluates the impacts of the elimination of taxes on Brazilian agricultural exports. A computable general equilibrium model is used to simulate the reaction of the economic agents to those changes. The elimination of the taxes on exports promotes an increase in the level of exports and more competition with agro-industrial activities and domestic consumption. Consequently, there is a fall on the level of family income and, as a result, decreases in the family consumption expenses. There was a generalized fall in the levels of consumers' welfare, even though with gains in the level of rural employment and in the foreign exchange earnings.
