This study simulates the economic effects of eastern enlargement of the EU and an EU-Russian free trade area. The main emphasis of the paper is on the effect this would have on the Russian economy. The simulations were carried out with a GTAP computable general equilibrium model, using the most recent GTAP database 6.0 beta, which takes the former Europe agreements between the EU-15 and the eight new Central and Eastern European member states into account.

This paper presents an alternative derivation of the gravity equation for foreign trade, which is explicitly based on monopolistic competition in the export markets and which is more general than previously seen in the literature. In contrast with the usual specification, our model allows for the realistic assumption of asymmetry in mutual trade flows. The model is estimated for trade in Europe, producing evidence that trade flows and barriers do indeed reveal strong asymmetry.

Although the Euro-Mediterranean Partnership (EMP) in spirit aims at fostering economic growth and stability at the southern periphery of the EU, the contents of the trade agreements reflect the more narrow economic interests of specific, southern EU member states (dell’Aquila & Kuiper, 2003). Key characteristics of the Euro-Mediterranean Association Agreements (EMAAs) are an asymmetric focus on liberalising trade in the manufactured goods of the MPCs, while maintaining trade barriers on agricultural products.

Economic growth rates in the Gulf region have languished in recent years and need to be raised to accommodate the rapidly growing populations and social aspirations of the region. Using a simple model of world trade, this report investigates the economic impacts of the new customs union of the Gulf Cooperation Council (GCC) and the proposed free trade agreement (FTA) between the GCC and European Union.

The WTO meeting at Cancún, Mexico this September represents a critical stage in the Doha Development Round of world trade talks. Free trade has been under sustained attack from a wide spectrum of pressure groups since the Seattle debacle in 2000. This CEPS Task Force Report articulates a progressive, business-oriented agenda on trade. It suggests that there is a ‘hierarchy of responsibility’ among negotiating countries.

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