Economic impact analysis

The economic impact analysis provided the starting point for the SIA, as many of the other effects are consequences of the agreement's economic effects. The economic impact analysis was not restricted to changes in Australia's and the EU's exports and imports but covered a vast range of economic factors.

Among the issues that the economic analysis comprised are:

  • The identification, description and analysis of the tariffs and non-tariff obstacles affecting trade between the EU and Australia;
  • The impact of removing both tariffs and non-tariff barriers affecting trade in goods and services;
  • The impact on behind-the-border issues, government procurement and investment liberalization;
  • The impact on SMEs as well as on participation in global value chains;
  • The impact of the FTA on third regions, in particular the EU Outermost Regions and least developed countries (LDCs);
  • Implications which the agreement might have for the promotion of good governance and fight against corruption; and
  • The links between the EU-Australia trade agreement and both parties' conclusion of trade agreements with other countries.

The starting point for the economic analysis was the CGE modelling undertaken by the Commission, complemented by additional quantitative and qualitative analysis.