Commissioned by: Federal Ministry of Labour and Economy
Study by: Austrian Institute of Economic Research
Online since: 20.02.2024 0:00
Geoeconomic concepts are gaining importance in EU trade policy. In this context new trade policy instruments are designed
to protect the internal market against unfair trade practices, coercive actions as well as to ensure sustainable supply chains
and the protection of human rights. The study extensively overviews seven policy instruments: Anti-Coercion Instrument (ACI),
Enforcement Regulation (ER), International Procurement Instrument (IPI), Carbon Border Adjustment Mechanism (CBAM), Corporate
Sustainability Due Diligence (CSDD), Level Playing Field Provisions in the EU-UK Trade and Cooperation Agreement (LPF), and
EU Regulation on Deforestation-Free Products (EUDR). Using gravity models and a quantitative general equilibrium trade model,
the impact of the selected trade policy instruments on trade and welfare of the EU as well as Austria is estimated based on
different scenarios.
JEL-Codes:F13, F14, F15, F18, F55, Q01, Q56
Research group:Industrial, Innovation and International Economics