Brazil and the USA are among the leading producers of beef. However, trade barriers can bring about distortions in the food market, compromising competitiveness. The objective of this study was to evaluate the competitiveness of beef from Brazil and the USA in the international market from 1990 to 2008. The Revealed Competitiveness Index was used to discuss the effects of subsidies, trade agreements and sanitary barriers on the competitiveness of beef in the respective countries. The results indicate that Brazil had competitive advantages in the period 1991 to 2008, while The USA had advantages in the period 1993 to 2003. Trade agreements increased the competitiveness of these countries, however there was decrease in rates when sanitary problems were identified. Therefore, even with high subsidies provided to farmers, the USA presented lower performance compared to Brazil in the beef world market.
free trade; comparative advantage; public policy
