Assessment of the Distributive Impact of Trade Reforms in Mercosur

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The overall objective of the technical cooperation is to assess the distributional and poverty effects of trade reforms in selected countries of Mercosur (Brazil, Paraguay and Uruguay). The specific objectives include: (i) the assessment of the effects of foreign trade reforms, with emphasis on the impact on the income distribution structure and on changes in the poverty head count ratios; (ii) the identification of the social groups that might require compensation and/or trade-related assistance; and (iii) the provision of evidence to define policies and government programs aiming at reducing the potential regressive implications of trade integration.