Abstract
The nature of trade agreements has changed in recent decades. While they were centered around mutual tariff reduction, they have now a much broader scope which involve cooperation on (re)definition of domestic regulations, e.g. the regulation of product standards for environmental, sanitary and safety reasons.
This proposal, DEEPTRADE, builds on state-of-the-art tools to provide a thorough assessment of the impact of these new features of trade agreements. DEEPTRADE has three related work packages. WP1 studies the effect that these features have on trade disputes between countries. WP2 investigates the response and adaptation of exporters to these new regulations. WP3 offers a comprehensive framework to assess the welfare effect of these agreements.
Assessing the impact of comprehensive trade agreements is challenging. This project not only creates a novel dataset linking trade disputes and trade agreements [WP1], but also combines detailed firm-level data with rich modelling to deepen our understanding of the effects of these new provisions [WP2 and WP3].
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