Impacts of a liberalization in the USA market for Frozen Concentrated Orange Juice: why Florida´s producers are so afraid?

This study aims at examining the resource allocation andwelfare implications of the reduction of barriers in the United Statesmarket for Frozen Concentrated Orange Juice (FCOJ) imported fromBrazil. The present paper is organized as follows: section 2 presents anoverview of the main features of the market and current trade regimefor orange juice, as well as the possible impacts of liberalization withinFTAA and with the European Union; section 3 describes the partialequilibrium model of imperfect substitute goods used to estimate theimpact of trade liberalization in the United States, on prices and quantitiesand on welfare; in section 4 two possible scenarios for liberalization aredesigned using the large country model. The last section summarizesthe main conclusions.