You searched for: Content Type Policy Brief Remove constraint Content Type: Policy Brief Publishing Institution Peterson Institute for International Economics Remove constraint Publishing Institution: Peterson Institute for International Economics Political Geography Global Focus Remove constraint Political Geography: Global Focus Publication Year within 25 Years Remove constraint Publication Year: within 25 Years Topic Economics Remove constraint Topic: Economics
- Author: Caroline Freund, Sarah Oliver
- Publication Date: 06-2015
- Content Type: Policy Brief
- Institution: Peterson Institute for International Economics
- Abstract: Regulatory standards protect consumers from defective products, but they impede trade when they differ across countries. The Transatlantic Trade and Investment Partnership (TTIP) seeks to reduce distortions in the automobile and other industries. Freund and Oliver evaluate the equivalence of automobile regulations in the United States and the European Union in terms of catastrophe avoidance and estimate the trade gains from harmonization. The UN 1958 Agreement on automobiles, which harmonizes regulations among signatories, is used to quantify the trade effect of regulatory convergence. The removal of regulatory differences in autos is estimated to increase trade by 20 percent or more. The effect on trade from harmonizing standards is only slightly smaller than the effect of EU accession on auto trade. The large economic gains from regulatory harmonization imply that TTIP has the potential to improve productivity while lowering prices and enhancing variety for consumers.
- Topic: Economics, International Trade and Finance, Treaties and Agreements, European Union
- Political Geography: Global Focus