This comprehensive report-actually fourcompartmentalized reports in one-- focuses on policies toimprove Brazil's trade performance. Specifically, threequestions are addressed:What are the merits ofalternative trade liberalization or integration options ?What domestic policies should be adopted to enhanceBrazil's export response to trade openness? What policyoptions in the area of international services tradenegotiations can improve access to foreign markets andenhance the value of overall trade reforms? In Part 1,Chapter 1examines regional, multilateral, and unilateraltrade policies. Chapter 2 overviews export performance,surveys the overall policy environment facing potential andactual exporters, and identifies the main areas wherepolicies could be improved to help enhance exportperformance. Lastly, Chapter 3 discusses how regional andmultilateral negotiations can be used to support domesticreform and improve access to foreign markets. Part 2provides quantitative estimates to answer questions aboutthe efficacy of unilateral liberalization and multilateraltrade agreements. After an introductory chapter, Chapter 2describes the model and data. Chapter 3 presents andexplains the policy results for Brazil, the implications forthe distribution ofincome, and the reallocation ofoutputamong sectors. Results for other countries in the model arealso explained. The impact on partner and excluded countriesof the regional arrangements are also evaluated and comparedto the impact under multilateral trade liberalization.Chapter 4 examines how the various trade policy options maybe combined to optimize the outcome for Brazil. Theconclusions are in Chapter 5. In Part 3, Chapter 1 brieflydiscusses overall macroeconomic context and the argumentsfor fostering greater export growth. Chapter 2 provides anoverview ofexport performance in recent years. This isfollowed in Chapter 3 by an examination ofthe governmentinstitutional environment for policy-making related toexports.Chapter 4--the main section in this part-discussesthe policies affecting export behavior. An emphasis has beenplaced on the results of interviews conducted with exportingfirms. The final section--Chapter 5--provides somesuggestions and recommendations for policies. In Part 4,Chapter 1 provides a backdrop to this section.Chapter 2describes the pattern ofBrazil's trade in services,drawing upon balance ofpayments statistics and data onforeign direct investment inflows.Chapter 3 reviewsBrazil's services trade and investment policy inservices. Chapter 4 examines Brazil's export interests.Chapter 5 provides an economic analysis ofthe choiceBrazil faces between regional and multilateral approaches toliberalization oftrade in services.Chapter 6 offers acritical review ofthe rules ofexisting internationalagreements on trade in services that are most relevant toBrazil.Finally, Chapter 7 seeks to synthesize the insightsemerging from Chapters 2-6.