Does Abolishing Tariffs in Bilateral Trade Matter for a Country’s Economic Growth? The Impact of the EU–Ukraine DCFTA

Abstract

In the present study, a GTAP CGE model is used to assess three proposed scenarios for the DCFTA between the EU and Ukraine, one for unilateral trade liberalisation, another for bilateral trade liberalisation with exemptions from free trade and a third for bilateral trade liberalisation without exemptions from free trade. The main point of distinction of this study is the inclusion of exemptions from free trade in the first two simulated scenarios and the possibility of a quantitative evaluation of exemptions from free trade through the differences between scenarios 3 and 2.

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