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Consumer benefits from EU trade liberalisation: How much did we save since the Uruguay Round?

Author

Listed:
  • Cernat, Lucian

    (DG Trade)

  • Gerard, Daphne

    (European Commission)

  • Guinea, Oscar

    (Scottish Government)

  • Isella, Lorenzo

    (European Commission)

Abstract

Throughout human history, trade remained a key factor in explaining the economic rise and fall of societies and nations. Despite the perennial nature of international trade in our societies and the ample evidence in favour of its importance, the benefits from trade for individual consumers are still subject to misunderstandings. Using a novel technique matching very detailed household consumption and import data, we quantify one narrow aspect of the multitude of consumer gains from trade - the tariff savings for EU households and consumers over the last two decades, as a result of multilateral and bilateral trade agreements. Overall, the total annual tariff savings for all EU households (if the pre-Uruguay Round tariffs continued to apply on today's imports) amount to around 60 billion euro.

Suggested Citation

  • Cernat, Lucian & Gerard, Daphne & Guinea, Oscar & Isella, Lorenzo, 2018. "Consumer benefits from EU trade liberalisation: How much did we save since the Uruguay Round?," DG TRADE Chief Economist Notes 2018-1, Directorate General for Trade, European Commission.
    • Handle: RePEc:ris:dgtcen:2018_001
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    References listed on IDEAS

    as
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    3. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1727-1767.
    4. Rajagopal, 2015. "Consumer Value Management," Palgrave Macmillan Books, in: The Butterfly Effect in Competitive Markets, chapter 5, pages 119-143, Palgrave Macmillan.
    5. Rueda-Cantuche , José M. & Sousa, Nuno, 2016. "Eu Exports To The World: Overview Of Effects On Employment And Income," DG TRADE Chief Economist Notes 2016-1, Directorate General for Trade, European Commission.
    6. J-C Bureau & L Fulponi & L Salvatici, 2000. "Comparing EU and US trade liberalisation under the Uruguay Round Agreement on Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(3), pages 259-280, September.
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    Cited by:

    1. Maria Cipollina, 2022. "The Trade Growth under the EU–SADC Economic Partnership Agreement: An Empirical Assessment," Economies, MDPI, vol. 10(12), pages 1-16, November.
    2. Adu, Derick T. & Li, Wenying & Sawadgo, Wendiam P.M., 2023. "Estimating the unintended impact of the North American free trade agreement on U.S. public health," Social Science & Medicine, Elsevier, vol. 333(C).

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    More about this item

    Keywords

    Consumer benefits; trade liberalisation;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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