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Trade and Welfare Effects of New Trade Policy Instruments

Author

Listed:
  • Yvonne Wolfmayr
  • Elisabeth Christen
  • Hendrik Mahlkow
  • Birgit Meyer
  • Michael Pfaffermayr

Abstract

Geoeconomic concepts are gaining importance in EU trade policy. In this context new trade policy instruments are designed to protect the internal market against unfair trade practices, coercive actions as well as to ensure sustainable supply chains and the protection of human rights. The study extensively overviews seven policy instruments: Anti-Coercion Instrument (ACI), Enforcement Regulation (ER), International Procurement Instrument (IPI), Carbon Border Adjustment Mechanism (CBAM), Corporate Sustainability Due Diligence (CSDD), Level Playing Field Provisions in the EU-UK Trade and Cooperation Agreement (LPF), and EU Regulation on Deforestation-Free Products (EUDR). Using gravity models and a quantitative general equilibrium trade model, the impact of the selected trade policy instruments on trade and welfare of the EU as well as Austria is estimated based on different scenarios.

Suggested Citation

  • Yvonne Wolfmayr & Elisabeth Christen & Hendrik Mahlkow & Birgit Meyer & Michael Pfaffermayr, 2024. "Trade and Welfare Effects of New Trade Policy Instruments," FIW Research Reports series 2024-02, FIW.
    • Handle: RePEc:wsr:ecbook:y:2024:m:01:i:2024-02
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    References listed on IDEAS

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    Cited by:

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    2. Klaus Weyerstraß & Martin Ertl & Daniel Schmidtner & Adrian Wende & Hannes Zenz, 2025. "Die Einbettung des österreichischen Außenhandels in die globale Arbeitsteilung," FIW Research Reports series y:2025:m:11, FIW.
    3. Michael Böheim & Werner Hölzl, 2026. "Zur Wettbewerbssituation in der globalen Eisenbahnindustrie. Herausforderung der chinesischen Industriepolitik und Handlungsoptionen für Österreich und Europa," WIFO Studies, WIFO, number 65098053.
    4. Gabriel Felbermayr & Klaus Friesenbichler, 2024. "Considerations for Member States Implementing the EU Supply Chain Regulation," EconPol Forum, CESifo, vol. 25(06), pages 22-25, November.

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F15 - International Economics - - Trade - - - Economic Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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