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Potential Economic Effects of TTIP for the Netherlands

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  • Hugo Rojas-Romagosa

    () (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

Abstract The transatlantic trade and investment partnership (TTIP) is a comprehensive preferential trade agreement that is expected to significantly increase EU–US bilateral trade and investments. Negotiations are ongoing, so we use a scenario analysis to estimate the potential effects of TTIP under likely negotiated outcomes. In our main scenario, we assume a final trade deal where current tariffs are eliminated and non-tariff barriers are significantly reduced. We simulate the potential economic effects of TTIP using a CGE model. We find that US-Dutch bilateral trade doubles and this is translated into a positive but moderate effect on Dutch income of 1.7%.

Suggested Citation

  • Hugo Rojas-Romagosa, 2017. "Potential Economic Effects of TTIP for the Netherlands," De Economist, Springer, vol. 165(3), pages 271-294, September.
  • Handle: RePEc:kap:decono:v:165:y:2017:i:3:d:10.1007_s10645-017-9293-8
    DOI: 10.1007/s10645-017-9293-8
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    References listed on IDEAS

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    More about this item

    Keywords

    TTIP; Preferential trade agreements; CGE models;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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