Preference Utilisation and Tariff Reduction in EU Imports from ACP Countries

Despite the long relationship between the EU and the African, Caribbean and Pacific (ACP) countries aimed at encouraging their exports while stimulating growth and investment, the ACP states still face difficulties in integrating into the world economy. This paper examines the non-least developed ACP countries preferential trade with the EU. The objective is to explain the determinants of preferential exports of ACP countries towards the EU and to assess the impact of preferences on trade volumes. We also investigate the existence of a threshold in the offered duty reduction under which traders have no incentives to ask for preferences

The Economic Effects of a Russia-EU FTA

The paper examines the effects of Russia joining the WTO taking into account energy sector reform and the impact of a future Free Trade Agreement (FTA) between the enlarged EU and Russia. The paper uses Computable General Equilibrium Modelling techniques for quantifying the different possible scenarios. The scenarios include a standard assessment of the removal of tariff barriers including agriculture, services and removal of non-tariffbarriers. The results suggest that a potential FTA would be beneficial for Russia only if it would incorporate not only reduction in industrial tariffs but also in agriculture and liberalisation in services

Pursuing environmental and social objectives through trade agreements

Using a large dataset covering more than 180 countries and spanning several decades, we employ a SDID estimator to identify the extent to which trade agreements incorporating non-trade provisions (labor standards, environmental protection and civil and political rights) are associated with improvements in corresponding non-trade performance indicators. We distinguish between binding (enforceable) and non-binding provisions in trade agreements, and also control for the allocation of official development assistance targeting these three non-trade policy areas. Overall, the results suggest that efforts made to date to include non-trade provisions in trade agreements have not resulted in consistent desired (better) non-trade outcomes

EU trade agreements and non-trade policy objectives

The EU’s common commercial policy is used as an instrument to realize its values in EU trading partners, reflected in the inclusion of sustainable trade and development chapters in EU preferential trade agreements (PTAs). In this paper we ask if including non-trade provisions (NTPs) in EU PTAs has a systematic positive effect on non-trade outcomes in partner countries. We analyze the relationship between bilateral trade flows, the coverage of NTPs in EU PTAs and the performance of EU partner countries on several non-trade outcome variables using synthetic control methods. We find no robust evidence of a causal effect of including NTPs in EU PTAs on indicators of non-trade outcomes.This project received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement No 77068