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Extra resources for Oecd Review of Agricultural Policies: Brazil (OECD Reviews of Agricultural Policies)
Producers of exportables benefited from the reduced implicit taxation of exports and the elimination of quantitative restrictions on exports, producers of importables now had to compete, while those in regulated markets (notably wheat, milk, sugar and coffee) faced lower prices and higher competition, irrespective of the net trade position. 5 shows output indices for crops and livestock products from 1990 to 2004. Trade liberalisation and deregulation of the markets for several importables led to a contraction of crop output in the early 1990s, as domestic production was replaced by imports.
Brazil’s economic growth has often been circumscribed by balance-of-payments constraints, with rising per capita incomes leading to higher demand for imports that are not matched by export growth. One difficulty arises from the relatively low share of exports in national income compared with similarly large countries. 1 There are several possible reasons for this low ratio. One is the considerable distances to Brazil’s main markets (notably the European Union and the United States), with relatively high transport costs acting as a form of natural protection, particularly for low value products.
Within the soybean sector, exported volumes of unprocessed soybeans increased considerably in the second half of the 1990s, following the removal in 1996 of ICMS taxes on exported primary products, and in response to the emergence of the large Chinese market for uncrushed beans. Brazilian exports of soybeans to China surged from 15 000 tonnes to 6 million tonnes between 1996 and 2003. OECD countries account for more than half of Brazil’s agro-food exports, although that share is declining. 10).
Oecd Review of Agricultural Policies: Brazil (OECD Reviews of Agricultural Policies) by Organisation for Economic Co-Operation a