Quantifying the Effects of Free Trade Agreements

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The rise in the number of negotiated and concluded Free Trade Agreements (FTAs) worldwide has been the result of remaining trade barriers and the slow progress towards a breakthrough at the WTO. Negotiating teams before entering into negotiations with potential partners should undertake regulatory and economic impact assessments to estimate the benefits and costs of signing up to an FTA. This article introduces the basic methodologies for undertaking an impact assessment of free trade agreements and addresses some of their limitations.

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