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Free trade between the EU and US: A match made in heaven While talks of a preferential agreement between the US and EU were put aside when President Trump came in office, the presidents of the two trading partners have recently expressed a new desire to aim for zero tariffs and non-tariff measures between the them. This column estimates the gains from such a deal, taking into account global value chains and input-output linkages in production.
Global value chains, trade shocks and jobs: An application to Brexit Global value networks make it difficult to evaluate the trade impact of Brexit. Using a new model of trade that accounts for the indirect effect of these networks, this column delivers fresh bad news for the UK, and for the rest of Europe. Brexit cuts GDP more, and costs more jobs, if we also consider global value chains.
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