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GTAP Resources: Resource Display

GTAP Resource #6063

"Properly Capturing Trade Liberalization: Impacts of CETA"
by Jafari, Yaghoob, Wolfgang Britz, Houssein Guimbard and Jayson Beckman

Commutable general equilibrium (CGE) is a widely used approach to analyze the economy-wide impact of free trade agreements (FTAs). The majority of CGE applications do not explicitly consider Tariff Rate Quota (TRQ) due to both data and modeling deficiencies. Among those that do model them explicitly, TRQs are implemented at the aggregate sectoral level. We propose an approach based on the Mixed Complementary Problem (MCP), which allows regime shifts in TRQs, where TRQs are implemented at the tariff line level. We use the Comprehensive Economic and Trade Agreement (CETA) as an example and compare our simulation results with the proposed approach with the standard approaches where TRQs are converted to AVEs and/or are explicitly modeled at the aggregate sectoral level. Our result suggests that standard approaches might substantially overestimate possible trade and welfare gains of bilateral trade between the trading partners.

Resource Details (Export Citation) GTAP Keywords
Category: 2020 Conference Paper
Status: Published
By/In: Presented during the 23rd Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2020
Created: Jafari, Y. (4/15/2020)
Updated: Jafari, Y. (4/15/2020)
Visits: 514
- Baseline development
- Agricultural policies
- Non-Tariff barriers
- European Union
- North America

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