Preliminary Report: Potential Economic Effects of the Reduction in Agricultural and Nonagricultural Trade Barriers in the Transatlantic Trade and Investment Partnership

TR Number

Date

2016-10

Journal Title

Journal ISSN

Volume Title

Publisher

Virginia Tech. Global Issues Initiative

Abstract

The objective of this paper is to provide an assessment of the potential economic effects in the U.S. and EU28 of reducing the trade barriers between the two economies¹. A global computable general equilibrium (CGE) model is used to determine over the period 2015-2024 the immediate, medium-term and long-run effects on the bilateral trade between the U.S. and EU28, and the related effects on the rest of global trade. Aggregate trade creation and trade diversion effects are calculated, as well as the sectoral production, trade and consumption effects and impacts on factor prices and welfare in both economies.

Description

Keywords

Transatlantic Trade and Investment Partnership (TTIP), Regional trade, United States, European Union 28, Global computable general equilibrium (CGE) model, Tariffs, Non-tariff measures (NTM)

Citation