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Trade and Welfare Effects of New Trade Policy Instruments

Author

Listed:
  • Yvonne Wolfmayr
  • Elisabeth Christen
  • Hendrik Mahlkow
  • Birgit Meyer
  • Michael Pfaffermayr

Abstract

Geoeconomic concepts are gaining importance in EU trade policy. In this context new trade policy instruments are designed to protect the internal market against unfair trade practices, coercive actions as well as to ensure sustainable supply chains and the protection of human rights. The study extensively overviews seven policy instruments: Anti-Coercion Instrument (ACI), Enforcement Regulation (ER), International Procurement Instrument (IPI), Carbon Border Adjustment Mechanism (CBAM), Corporate Sustainability Due Diligence (CSDD), Level Playing Field Provisions in the EU-UK Trade and Cooperation Agreement (LPF), and EU Regulation on Deforestation-Free Products (EUDR). Using gravity models and a quantitative general equilibrium trade model, the impact of the selected trade policy instruments on trade and welfare of the EU as well as Austria is estimated based on different scenarios.

Suggested Citation

  • Yvonne Wolfmayr & Elisabeth Christen & Hendrik Mahlkow & Birgit Meyer & Michael Pfaffermayr, 2024. "Trade and Welfare Effects of New Trade Policy Instruments," FIW Research Reports series 2024-02, FIW.
    • Handle: RePEc:wsr:ecbook:y:2024:m:01:i:2024-02
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    More about this item

    Keywords

    trade; Welfare; human rights; EU trade policy; unfair trade practices; sustainable supply chains; internal market; Geoeconomic concepts; trade policy instruments; Anti-Coercion Instrument; coercive actions; Foreign Subsidy Instrument; International Procurement Instrument; gravity models; Deforestation Initiative; Enforcement Regulation; EU-UK Trade and Cooperation Agreement; impact; Level Playing Field Provisions; quantitative general equilibrium trade model; Carbon Border Adjustment Mechanism; Corporate Sustainability Due Diligence;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F15 - International Economics - - Trade - - - Economic Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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