Trade effects in Brazil incorporate a wide variety of issues. According to author Filipe Lage-de-Sousa, Brazil experienced "trade shocks" in the 1990's (http://ideas.repec.org/p/wiw/wiwrsa/ersa06p441.html, 2011). Essentially, what this means is that the effects of "unilateral liberalization" and "drastic devaluation of exchange by 47% in 1999" had caused Brazil to cease trading--or, at least drastically reduce it. Lage-de-Sousa goes on to say that Brazil reduced its involvement in the industry sector from 52% to 47% (Ibid., ibid).
I was curious why this all would have come into a perfect storm of economic distress, and found that it has a lot to do with raising wages and increasing the number of jobs. There appears to be some sort of reduction in production, which in turn has laid off all of these workers. Hence, no revenue is generated for the workers, or the country, which leads to all of these financial problems.
According to another source, Sandra Polaski, in 2009, they expected that another Doha round would help Brazil out of its crises (http://carnegieendowment.org/2009/04/09/brazil-in-global-economy-measuring-gains-from-trade/exw, 2011). How this would be done is that hypothetically speaking, there would be less subsidies given to European countries for agricultural purposes--or nations part of the OECD--which would then provide more opportunity for Brazil and other countries like it to boost their agricultural productions. Thus, more jobs! I wonder how this is being done in today's era--with the global economy in a constant state of unrest? ...
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