The operation and influence of non-tariff measures (NTMs) on trade flows can be complex, making the direct impact on trade and welfare unclear. This technical paper introduces a new stylised approach of modelling the impacts of NTMs in a computable general equilibrium (CGE) model incorporating increases in trade (through export) costs and changes in consumer preferences, where the trade costs are represented by both variable and fixed costs and consumer preferences by the consumers’ willingness-to-pay.

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