The Cost of EU Trade Protection in Textiles and Clothing
AbstractThis paper estimates the costs of EU restraints on trade in textiles and clothing. After explaining the methods used, we examine the impact of an opening up of EU trade in textiles and clothing, inter alia to those economies where the textile and clothing (T&C) industries command sizeable shares of exports and output. The estimates are based, firstly, on a partial equilibrium analysis allowing us to directly cover the effects of liberalization on the importation, production and consumption of T&C products; secondly, a general equilibrium analysis incorporates the wide-sweeping indirect costs of ATC within the EU. It turns out that in 1997 EU consumers paid roughly ECU 25 billion more for T&C products, due to quotas, tariffs and indirect effects.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 997.
Length: 123 pages
Date of creation: Aug 2000
Date of revision:
Agreement on Textiles and Clothing – ATC; Multi-fiber Arrangement; Costs of Protection; EU trade policy;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
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