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Discussion Paper

No. 2011-33 | August 25, 2011
Deep Trade Policy Options for Armenia: The Importance of Trade Facilitation, Services and Standards Liberalization

Abstract

In this paper the authors develop an innovative 21 sector computable general equilibrium model of Armenia to assess the impact on Armenia of a Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, as well as further regional or multilateral trade policy commitments. The authors find that a DCFTA with the EU will likely result in substantial gains to Armenia, but they show that the gains derive from the deep aspects of the agreement. In order of importance, the sources of the gains are: (i) trade facilitation and reduction in border costs; (ii) services liberalization; and (iii) standards harmonization. A shallow agreement with the EU that focuses only on preferential tariff liberalization in goods will likely lead to small losses to Armenia primarily due to a loss of productivity from lost varieties of technologies from the Rest of the World region in manufactured products. Additional gains can be expected in the long run from an improvement in the investment climate. The authors estimate only small gains from a services agreement with the CIS countries, but significant gains from expanding services liberalization multilaterally.

Paper submitted to the special issue
Trade Facilitation, Transport Costs and Logistics: A New Challenge for European Competitiveness

Data Set

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The data set for this article can be found at: http://hdl.handle.net/1902.1/16633

JEL Classification

C68 F12 F13 F14 F15 F17 L16

Cite As

Jesper Jensen and David G. Tarr (2011). Deep Trade Policy Options for Armenia: The Importance of Trade Facilitation, Services and Standards Liberalization. Economics Discussion Papers, No 2011-33, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2011-33

Assessment



Comments and Questions


Anonymous - Invited Reader Comment
October 06, 2011 - 11:33

see attached file


Anonymous - Referee Report 1
October 26, 2011 - 08:35

see attached file


Anonymous - Referee Report 2
October 31, 2011 - 09:34

see attached file


David Tarr - Revised Version
November 21, 2011 - 10:09

see attached file


David Tarr - How we incorporated the comments of the referees and the reader
November 21, 2011 - 10:12

see attached file