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In this study we analyse the provisions of the EU-Mercosur trade agreement (EUMETA) in its form presented by the European Commission. Our analysis covers the potential macroeconomic effects of the agreement that are based on the analysis of the extent of trade liberalisation through the lens of a computable general simulation model, as well as more detailed analysis of trade structure, tariff structure, non-tariff protection and the trade-related provisions of the agreement including trade in services ...

Trade and biodiversity

Analisi approfondita 05-06-2020

International trade has a direct impact on EU biodiversity, imported invasive species and pathogens, being an example. Trade also impacts global biodiversity, for instance through the 'virtual' water, land, and deforestation contained in EU imports. Economic theory shows that trade with countries that fail to protect a renewable resource can be detrimental for all. Protecting global biodiversity calls for a variety of instruments, at the EU border as well as in the provisions of preferential agreements ...

Understanding trade balances

In sintesi 08-02-2019

Trade policy discourse on both sides of the Atlantic has recently focused on trade deficits and surpluses. In the United States (US), President Donald Trump has routinely referred to the US trade deficit as a central indicator of the country's economic woes and made its reduction a key objective of US trade policy. In Europe, the world's largest trade surplus, run by Germany, has come under scrutiny. However, focusing on trade balances of exports and imports can be misleading in the trade policy ...

Following the signature of the EU-Japan Economic Partnership Agreement (EPA) in July 2018, and the conclusion of the ratification procedures by both partners at the end of 2018, the agreement entered into force on 1 February 2019. The agreement is the EU's largest bilateral trade agreement to date. It establishes a free trade area with a combined market of around 640 million consumers, accounting for roughly a third of the world's gross domestic product (GDP). The European Commission's analysis of ...

Gender equality and trade

In sintesi 31-01-2019

Trade liberalisation has a gender-differentiated impact inside and outside Europe. The EU, which is committed to promoting gender equality in all policies, has established specific mechanisms in its trade policy to enforce women's labour and human rights, and monitor the gender impact of its trade preferences. The European Parliament supports this policy and asked for it to be reinforced. This is an update of an ‘at a glance’ note from March 2018.

VAT for small enterprises

Briefing 25-10-2018

Value added tax (VAT) is a consumption tax borne by the final consumers and collected by businesses as taxable persons. Businesses have VAT administrative obligations and act as VAT collectors. This generates compliance costs that are higher for small and medium-sized enterprises (SMEs) than for bigger businesses, in spite of the small business exemption, especially in the case of cross-border activities. The proposal for a revision of the VAT Directive relating to the common system of value added ...

This report independently assesses the EU-Japan Economic Partnership Agreement. We find that the EPA establishes an ambitious framework to further liberalise and better organise trade, covering goods, services, intellectual property and investment, tariff- and non-tariff measures, and regulatory cooperation. Given its depth and breadth, and that it is unprecedented in including provisions on corporate governance, SMEs, and climate change, the EPA is set to become a benchmark for future trade agreements ...

Mode 5 refers to services which are incorporated into goods which are then traded across international borders. Unlike traditional services, Mode 5 services are not subject to the existing international trade regime under the WTO General Agreement on Trade in Services (GATS). Rather, they are subject to trade rules under the framework that governs trade in goods. As a consequence, trade in Mode 5 services is not fully liberalised, even though liberalisation would be in the best interest of international ...

On 22 May 2018, the Council authorised the Commission to negotiate free trade agreements (FTAs) with Australia and New Zealand, and adopted the related negotiating directives. The FTAs will mainly focus on further reducing existing trade obstacles, eliminating custom duties on goods, and improving access for services and public procurement in Australia and New Zealand. The first negotiation rounds are expected to take place in July 2018, and the Commission aims to conclude negotiations before the ...

International trade agreements have the potential to help breaking the vicious circle of corruption in economies based on privileged connections rather than fair competition. They increase competition in the removal of tariffs and so diminish the power of rentier companies which influence domestic regulation in their favour. They also contribute to a fairer business environment through their transparency provisions. Trade openness, red tape reduction and fiscal transparency, especially transparency ...