Unveiling trade potential:an ex-ante analysis of the Sri Lanka-Thailand free trade agreement
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Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
Institute of Policy Studies of Sri Lanka
Abstract
Sri Lanka and Thailand are engaged in expedited negotiations for a free trade agreement(FTA) to enhance bilateral trade, facilitate trade activities, and promote investments. Anex-ante analysis employing a partial equilibrium analysis framework is conducted to
assess the potential benefits and drawbacks of the agreement. The analysis considersexisting tariffs, bound tariffs, binding overhangs, and the development of offensive lists for both countries. Simulations are performed for 47 Global Trade Analysis Projects(GTAP) sectors, utilising sector-specific Armington elasticities to enhance the accuracyof the estimates.