Complementarity of trade between Brazil and Japan with a view to a free trade agreement

Abstract

Japan has signed free trade agreements as trade policy since 2002 and three countries have already signed in Latin American. Considering the intention to carry out an agreement with MERCOSUR, this article aims to analyze the complementarities between Brazil and Japan trade structure by revealed comparative advantages indexes, with World Bank data for the period between 2006 and 2008. The results show a comparative advantage in primary commodities to Brazil and in industrial products to Japan, as well as indicating sectors that may oppose to trade liberalization.

JEL Classification: F15.