Trade protection costs the European Union between 6 and 7 percent
of its gross domestic product -- or the equivalent of the annual
economic output of Spain. Continuing the Institute's series on
trade protection in major countries (which already includes the
United States, Japan, Korea, and China), this study by Patrick
Messerlin is the first attempt to measure the impact of all the
major instruments of protection in the European Union.
Messerlin uses partial equilibrium methods to assess the costs
to consumers and to evaluate the political economy of European
protection. He also examines in detail the intricate relations
between the major EU domestic policies -- from the Common
Agricultural Policy to the Single Market in services -- and
commercial policy. He aims to assess their dynamic evolution for
the decade to come, which will be marked by the first accessions of
Central European countries to the EU and by the debate on the
European political union. The study provides a valuable agenda for
the upcoming round of WTO negotiations and underlines their role as
a support for domestic reforms that the EU should undertake for its
own benefit.
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