Kiel Working Papers, Kiel Institute for World Economics
No 997:
The Cost of EU Trade Protection in Textiles and Clothing
Joseph F. Francois, Hans H. Glismann and Dean Spinanger
Abstract: This paper estimates the costs of EU restraints on trade
in textiles and clothing. After explaining the methods used, we examine the
impact of an opening up of EU trade in textiles and clothing, inter alia to
those economies where the textile and clothing (T&C) industries command
sizeable shares of exports and output. The estimates are based, firstly, on
a partial equilibrium analysis allowing us to directly cover the effects of
liberalization on the importation, production and consumption of T&C
products; secondly, a general equilibrium analysis incorporates the
wide-sweeping indirect costs of ATC within the EU. It turns out that in
1997 EU consumers paid roughly ECU 25 billion more for T&C products, due to
quotas, tariffs and indirect effects.
Keywords: Agreement on Textiles and Clothing – ATC, Multi-fiber Arrangement, Costs of Protection, EU trade policy; (follow links to similar papers)
JEL-Codes: F13,; F14,; L67; (follow links to similar papers)
123 pages, August 2000
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