The authors analyze the economic consequences of the Economic and Trade Agreement (ETA) between China and the USA, also referred to as the Phase-I Deal, which was signed on January 15, 2020. It is a highly asymmetric treaty which commits China to open its markets and to purchase large quantities...

China's expansionary economic policy toward Western countries was not predicted only in Washington but also in the EU. As expected, the EU became aware of the fact that China is a tough competitor, redesigning not only the world economy but also challenging Europe under the 17+1 and the Belt and...

We consider the effects of protectionist trade policies on international and domestic market integration, using evidence from the long-standing softwood lumber trade dispute between Canada and the United States. The benefits of trade liberalization are widely acknowledged, including better...

Since 2018, the U.S. and the EU have been erecting additional tariff barriers against each other. This study takes stock of existing transatlantic retaliatory tariffs and examines three different motives that explain how products are chosen to qualify for tariff retaliation. These channels are:...

In 2019 and the early months of 2020, global trade faced two major albeit very different shocks, namely the United States-China trade war and the cascading response of the countries around the world to the COVID-19 pandemic. While the former situation involved a pair of centrally-placed trading...

Rules-based trade is under attack and the WTO is at risk of marginalization. The COVID-19 pan-demic and its detrimental effects on public health, global supply- and value chains and industrial production, have brought back national export restrictions and stopped the free flow of goods and...

Using perfectly competitive, general equilibrium models of international trade, specific import tariffs, specific export taxes, and ad valorem trade taxes are compared in a trade war. A trade war is modelled as a NE in trade policies, where each country can choose to use ad valorem trade taxes...

Nachdem Joe Biden die Präsidentschaftswahlen in den USA für sich entscheiden konnte, stellt sich die Frage, wie sich die transatlantischen Beziehungen zwischen den USA und der Europäischen Union zukünftig entwickeln werden. Das Verhältnis zwischen der USAdministration unter Donald Trump und...

This paper provides an economic analysis of the trade conflict between the US and China, providing an overview of the tariff increases, a discussion of the background of the trade conflict, and an analysis of the economic effects of the trade conflict, based both on empirics (ex post analysis)...

The aim of the paper is to examine the effects of the US-China trade war on both countries and some emerging economies. Two scenarios are examined, one where only US protectionist measures are considered, and another in which Chinese retaliation is taken into account, using the GTAP (Global...

What precisely were the causes and consequences of the trade wars in the 1930s? Were there perhaps deeper forces at work in reorienting global trade prior to the outbreak of World War II? And what lessons may this particular historical episode provide for the present day? To answer these...

The main aim of this paper is to analyze US-China trade relations and the so-called "trade war" between the two countries. As a first step, we will look at the trade relations between the two countries and explain why President Trump is eagerly following a protectionist trade policy toward China...

The outcome of a trade war (with import tariffs and export subsidies) between two countries is analysed in a Cournot duopoly and in a Bertrand duopoly with differentiated products. The model allows for asymmetries between the countries in terms of competitiveness. When the two countries are...

This paper considers the indirect impact the recent tariff increases between the US and China can have in third countries through links in global supply chains. We combine data from inputoutput relationships, imports and tariffs, to calculate the impact of the tariff increases by both the US and...

This article evaluates the recent protectionist US trade policy and the retaliation of the EU and China. The article employs a New Quantitative Trade Theory model and an Armington model for comparison. The simulation results show that US car tariffs are a credible threat to the EU, but the steel...

The five contributions in this legal working paper discuss various aspects of investment arbitration. They were originally presented at the ECB legal colloquium on ‘The new challenges raised by investment arbitration for the EU legal order’ which took place in Frankfurt am Main in 2019.

The Brazil-Taxation dispute concerns the complaints taken to the World Trade Organisation by the European Union and Japan against seven different Brazilian industrial subsidy programmes. One concerned the automotive sector and represents a clear case of policies dictated by strong domestic...