A Study of the EU Non-tariff Trade Measures and Its Dynamic Welfare Effects of Removing NTBs

다국어 초록 (Multilingual Abstract)

Under the systems of the GATT and the WTO, general traiff rates have been reduced significantly. However, there are wide ranges of NTBs, which is one of main problems in international trade. The increased use of the non-tariff trade measures is to restrict sound international trade and resource allocation, and to affect chain NTBs actions between countries, which in turn increase the global welfare cost. The main purpose of this paper is to analyse the EU non-tariff trade measures as a case study, and the dynamic welfare economic effects of the removing NTBs. Chapter II examines the main non-tariff trade measures of the EU, which are related to both international trade and FDI. It is found that there are increasing problems of the trade legislations themselves, such as methodological and lack of transparency problems. It is, hence, often criticized that EU non-tariff trade measures move towards an industrial tool as a safeguard action rather than a system to counter unfair trade practices. Chapter m analyzes the dynamic welfare economic effects of removing nontariff barriers by using micro-economic models. The removing various NTBs and a global free trade area without any NTBs will stimulate international trade and FDI flows among countries that will benefit from spillover effects of economic development. The general framework of tariffs of the welfare concept in this paper supports the reduction of NTBs and tariff rates towards a free trade regime.