Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243225 
Year of Publication: 
2020
Series/Report no.: 
FIW-Research Reports No. August 2020
Publisher: 
FIW - Research Centre International Economics, Vienna
Abstract: 
This study presents quantitative and qualitative assessments of potential consequences of the trade agreement between the EU and Mercosur countries. It is embedded in a wider Association Agreement and was made public in summer 2019. The focus is on Austria. One objective of the agreement is to liberalise trade and to improve conditions for making investments in order to create jobs and value added and to give consumers in both regions better access to a wide range of products and services. A gravity model analysis shows that average income gains per person are remarkably similar in both regions. However, the economies in Mercosur countries will benefit more than EU Member States economies in relative terms. A second objective of the agreement is to meet targets that go beyond immediate economic benefits, such as to further sustainable development, to prevent environmental deterioration, to avoid social frictions and to smooth adaptation processes. A qualitative comparison shows the advancements compared to other trade agreements and the limitations of trade agreements to address social and environmental concerns. An in depth-appraisal of the provisions for agriculture shows potential benefits and costs for consumers and farmers in both regions.
Subjects: 
trade liberalisation
EU
MERCOSUR
gravity model
environment
agriculture
JEL: 
F13
F15
F17
F18
Q17
Document Type: 
Research Report

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