Harrison, Rutherford, Tarr, and Gurgel estimate thatThe agreement with the EU is almost twice as valuable the Free Trade Agreement of the Americas (FTAA), the for Brazil as the FTAA, but this conclusion depends on EU-MERCOSUR agreement, and multilateral trade the EU providing tariff free access to its agricultural policy changes will all' be beneficial for Brazil. The markets as part of the agreement. If the United States and Brazilian government strategy of simultaneously the EU do not permit access to their most highly negotiating the FTAA and the EU-MERCOSUR protected markets, the FTAA will be much more valuable agreement, while supporting multilateral liberalization to Brazil than the EU-MERCOSUR agreement. The through the Doha Agenda, will increase the benefits of FTAA contains a large number of markets outside of the each of these policies.United States, so there remains a lot of value in the The authors estimate that the poorest households FTAA for Brazil, even if the United States protects its typically gain roughly three to four times the average for most highly protected markets. Brazil from any of the policies considered. This is Both the FTAA and the EU-MERCOSUR agreements because the structure of tariff protection in Brazil favors are net trade-creating for the countries involved, but capital-intensive manufacturing. Tariff liberalization in excluded countries almost always lose from the Brazil will shift production toward labor-intensive agreements. The authors estimate that multilateral trade manufacturing and agriculture. Due to the increase in liberalization of 50 percent in tariffs and export subsidies demand for labor intensive sectors, the wage rate of results in gains to the world more than four times greater unskilled labor will increase, and the primary than either the FTAA or the EU-MERCOSUR determinant of the impact on the poor from trade agreement. This shows the continued importance to the liberalization is the wage rate of unskilled labor.world trading community of the multilateral negotiations.This paper-a product of Trade, Development Research Group-is part of a larger effort in the group to assess the impact of trade liberalization on poverty. Copies of the paper are available free from the World Bank,