ABSTRACT

The framework offered by the E3ME-Asia model is used to assess the economic and environmental impacts of a series of proposed trade deals that affect the East Asian economies. This chapter assumes that trade agreements lead to a complete abolition of the import tariffs between participating countries, resulting in changes in bilateral trade prices. It should be remembered that the modeling of the TPP in this chapter only relates to the removal of import tariffs and does not include any other non-tariff elements such as intellectual property rights, investment rules, and environmental and health regulations. Although it is never clear exactly how much time is required, it is assumed to be roughly comparable to the E3ME-Asia results for 2030. The Global Trade Analysis Project's (GTAP) suggests much larger changes in the manufacturing sectors that are affected directly by the trade agreements, including the energy-intensive sectors.