Scope
Applications include, among others, the TPP, RCEP, the China–Australia FTA, and China’s pilot free-trade zones.
Tariffs and taxes
We analyse changes in import, production, and consumption taxes. For FTAs, sensitive, semi-sensitive, and non-sensitive lines are identified from tariff schedules and historical trade, shocks are mapped into the CGE model, and effects are estimated with empirically grounded parameters such as Armington elasticities.
Non-tariff barriers
NTBs are measured with tariff equivalents, subsidy equivalents, and trade restrictiveness indices, then introduced into the CGE model. Goods and services NTBs are treated separately and converted into tariff equivalents, often via gravity estimates.
Foreign direct investment
The in-house GTAP-FDI model adopts the MONASH investment specification and distinguishes domestic from foreign capital. It has been used in work for the European Commission, Global Affairs Canada, and Singapore’s MTI, with a supporting dataset and programs.
Rules of origin
Not all trade is bound by rules of origin. We compare the gains from tariff cuts with the cost of proving origin, and, where relevant, convert compliance costs into tariff equivalents.