The significance of services trade: Mode 5 and trade policy implications.
The UK exports far more services than goods if all the different ways of trading services are considered. For example, some goods derive a substantial share of their value from services inputs such as research and development, logistics, distribution, branding and marketing. This video explains direct and indirect ways of trading services internationally, and looks at the implications for trade policy, particularly trade agreements.
Effective climate policy – Carbon Border Adjustment Mechanisms.
Reducing greenhouse gas emissions is a key element of climate change mitigation strategies. Yet, some countries worry that heavy industry might relocate because their climate regulation makes it too expensive to operate, leading to so-called carbon leakage. This video analyses the EU’s Carbon Border Adjustment Mechanism pros and cons in addressing carbon leakage, and suggests how further cooperation may be achieved to ensure climate change policy is effective.
Building supply chain resilience to manage continuous shocks.
Global supply chains have become increasingly complex over the past 50 years, leaving companies exposed to a series of risks, no better illustrated than by the shortage of Personal Protective Equipment and medicines during the COVID-19 pandemic. This video puts forward suggestions for companies on how to manage persistent shocks through diversification, end-to-end supply chain visibility and targeted government policies.
Gains from trade (part 2).
This animation looks at why trade results in winners and losers. Specialisation and the competition it creates in and between firms will mean some firms benefit whilst others struggle to adapt and / or compete. These firms may be forced to cut jobs or even close down and this, in turn, impacts on the workers and regions where those firms are located. But trade is only one factor that leads to winners and losers. Technology, for example, has had a significant impact. We show that various policies can help to mitigate the negative effects of trade on workers and regions and how these can be better than protectionism.
Gains from trade (part 1).
This video looks at the reasons why international trade can benefit an economy – be this through specialisation, more competition, or by leading to productivity change. An economy can therefore gain both by trading with countries which are very similar and those that are quite different. But not all firms, people or regions within an economy necessarily benefit from trade, and there may be both winners and losers.
Free ports fact-checked.
This animation explains how free ports work and why they are not the panacea for UK trade post-Brexit. Free ports will not significantly boost trade, create jobs or cut through red tape because they only delay tariff payments rather than abolish them.
‘Brexit: Where does it hurt?’
This video portrays the potential shock that a ‘no deal’ Brexit may have on jobs across the 632 parliamentary constituencies in Britain. Allowing for commuting, we find that the economic cost of Brexit is widely spread and it is clear that the Brexit shock would eliminate a particular number of jobs.
For a detailed explanation of the research for this video, please see explanatory note in ‘The vulnerability of different parliamentary constituencies to Brexit economic shocks’
Grandfathering the EU’s Free Trade Agreements.
This animation explains why rolling over these agreements is likely to be highly complicated, and will necessarily impact on trade. Rules of Origin and other clauses in some of these agreements mean that this will not be a simple cut and paste ‘UK’ job.
The ins and outs of the Single Market.
This video explains what the Single Market is, how it works and the ways it effects trade, and thereby the economy. Ultimately, the video explains that there is a trade-off between making your laws independently and cooperating sufficiently to be a part of a bigger market and achieve higher incomes.
The Customs Union: The Fiction of ‘Frictionless’ Trade.
This animation shows what leaving the EU Customs Union entails and that you need much more cooperation than just a customs union in order to achieve the same level of trade costs as we have now.
With or without EU.
This video shows that in terms of trade policy choosing trade priorities on the basis of aggregate UK data does not take into account the fact that the nations within the UK are exposed to trade with the EU in different ways.
