why is brazil emerging as a force of free trade? what other countries have to do...

why is brazil emerging as a force of free trade?

what other countries have to do with this?

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Expert Solution

Traditionally, Brazil has been a very closed economy, with protectionist policies. However, in the recent WTO summit held in 2019, it was suggested that Brazil would undertake policies to improve trade relations with its neighbouring countries as well as the countries of the European union. Greater trade integration can significantly benefit Brazil in boosting its economy that is suffering from problems of ineffective and loss making industries that have been for long surviving on subsidies . There are proceedings going on to bring in reforms like fisheries subsidies , agricultural subsidies, market regulation etc. Brazil is all set to integrate itself with the world economy and enjoy higher growth and opportunities.

The opening up of trade by Brazil is likely to positively affect its neighbours and the European union countries. It is well established that economic and social development is only possible through free trade. Brazil is negotiating with the EU on a free trade agreement as a part of the Mercosur group to boost trade integration by removing trade and non trade barriers. This will create new investment and trade opportunities for all the countries involved.

Rahul Sunny answered 1 year ago

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