Brazilian coffee: no to a new international agreement

ABSTRACT Four years after the breakdown of the International Coffee Agreement this paper is an attempt to evaluate the position of the Brazilian government. Brazil was, in 1989, the country very much against the renewal of the agreement. To do that an examination was made of the empirical evidence during the last thirty years. Such evidence showed losses in Brazil’s coffee production, exports and market share. In practice, Brazil was the only country to carry the burden of the coffee agreement. The other countries profited at Brazil’s costs. It is also shown the large comparative advantage of coffee production in Brazil and that adjustments should be made in domestic policies.