The economic potential of new EU trade agreements
The ifo Institute study examines how new EU trade agreements could counter the negative effects of increasing US protectionism.
Untapped trade potential
It finds that recent US tariff policies pose a serious risk to the EU economy, especially for export-oriented industries. To address this, the EU could strengthen trade ties with seven key partners (including countries like India, Australia, and Mercosur), where significant untapped trade potential still exists.
Benefits spread across all member states
Using economic modelling, the study shows that such agreements could more than offset the losses caused by US tariffs. Depending on how comprehensive the agreements are, EU GDP and exports would increase, with benefits spread across all member states and particularly strong gains in manufacturing.
Due to the paper, expanding trade agreements is an effective strategy for boosting economic growth, increasing resilience, and reducing dependence on the United States in a more protectionist global environment.
Find the whole study via clicking on the link.