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.