We employ a heavily modified âagriculturalâ variant of the GTAP model and a realistic baseline scenario to assess the impact on the Greek economy from a hypothetical âhub and spokeâ and a âFTAâ EUMED agro-food and fisheries trade agreement. Long run estimates show that Greek agro-food and fisheries sectors are not seriously affected, where surprisingly, trade diversionary losses to Greece from the FTA scenario are minor given minimal south-south trade links between Mediterranean Partner Countries (MPC). Further research shows that under complete CAP decoupling, notable additional welfare gains for MPC are realised, whilst Greece stands to lose approximately â¬300 million.
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