New Zealand Institute of Economic Research (NZIER), Wellington
The Phase I CEPEA Study Group report presented an overview of CEPEA’s objectives and scope, estimated the economic impact of a comprehensive agreement and provided some high level suggestions regarding selected key elements of such an agreement. This report builds on, and explores new ground, related to the four pillars of CEPEA noted above, and deepens the analytical knowledge base for future discussions. This report aims to inform and focus Study Group discussions for the next phase of this initiative by:  Making specific suggestions on the nature and scope of provisions that fall under the various pillars of CEPEA. These suggestions add some 'meat on the bones' of the conceptual framework presented in the Phase I report. This will help the Study Group to develop a view on what a CEPEA could look like in practice, and to better understand some of the complex issues and trade-offs that will arise if a comprehensive agreement is to be negotiated.  Updating the general equilibrium modelling exercise in the initial report by employing the recently-released version 7 of the GTAP database. This analysis estimates separately the impacts of a CEPEA on 15 of the 16 East Asia Summit countries. This modelling update will provide researchers, policy makers and Ministers with a clearer sense of the potential benefits that CEPEA would deliver to member countries.  Identifying areas of future research for the Study Group to consider.