Regional integration, triangular trade and policy recommendations: the case of the Brazilian fine chemical industry

Vol. 15 No. 4 (1995)

Oct-Dec / 1995
Published October 1, 1995
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Correa, Paulo Guilherme. 1995. “Regional Integration, Triangular Trade and Policy Recommendations: The Case of the Brazilian Fine Chemical Industry”. Brazilian Journal of Political Economy 15 (4):517-35. https://doi.org/10.1590/0101-31571995-0850.

Regional integration, triangular trade and policy recommendations: the case of the Brazilian fine chemical industry

Paulo Guilherme Correa
Mestre em Economia pelo IEVUFRJ, professor da Candido Mendes e economista do convênio PNUD/ BNDES. Rio de Janeiro/RJ, Brasil.
Brazilian Journal of Political Economy, Vol. 15 No. 4 (1995), Oct-Dec / 1995, Pages 517-535

Abstract

This paper examines the occurrence of “triangular trade schemes” in the export
of fine chemical products to Brazil from other Mercosur countries between 1989 and 1992
and suggests possible government counter measures. It is shown that the sudden increase
in Brazilian imports of fine chemicals from Uruguay corresponds to a “triangular” trade
scheme between both countries and a third party and suggests the adoption of more precise
origin rules than those agreed during recent Mercosur negotiations, allowing the gains from
integration to accrue mainly to the member countries.

JEL Classification: F15; F13; L65.


Keywords: Mercosur regional integration chemical industry international trade