Quantifying opportunities and threats: examining the Canada--EU trade negotiations

This study examines the impacts of a Canadian--EU preferential trade agreement. A carefully designed contemporary baseline scenario and additional HS6 tariff offer data are incorporated to establish the degree of ambition of the negotiations whilst assessing the sectoral trade opportunities and threats facing both partners. Initial tariff offer real income gains are estimated at 76% of full liberalisation in both regions, rising to 91% (Canada) and 84% (EU) under the second tariff offer. Given higher levels of applied tariff protection, potentially significant impacts are measured in dairy, meat and wheat sectors. Trade diversion losses on third countries are negligible.