ABSTRACT
The relevance of the issue of social costs for the current trade policy debate should be self-evident. The chapter scrutinizes the analytical treatment of non-tariff measures (NTMs) as trade costs by mainstream trade economics. It shows that the treatment of NTMs in trade impact assessments is still insufficient and indeed misleading on methodological grounds. The chapter focuses on methodological options for the assessment of social benefits of regulation exist that go beyond the prevailing approach. It discusses some of the most influential studies on the economic effects of Transatlantic Trade and Investment Partnership Agreement (TTIP) as reference points. The assessment of NTMs by mainstream trade economics is so far marked by a number of serious deficiencies. In contrast to the trade literature, cost–benefit analysis (CBA) has been employed widely in the economic assessment of public policy. Neoclassical economics, of which CBA forms a part, is firmly rooted both in methodological individualism and utilitarianism.
