Welfare Gains to UK from a Global Free Trade
This paper reports on a 11 region 15 sector global trade model which includes the UK as one of the regions. Model results show that a global elimination of tariffs, export taxes and subsidies raises the volume of global trade. Gains from the global free trade are 1.3 percent of the global GDP, roughly about 325 billion dollars in 1995. In absolute terms Japan gains the most (91 billion dollars) followed by Europe (67 billion dollars) and the USA (54 billion dollars). UK gains about 11 billion dollars (6.8 billion pounds) from multilateral trade liberalisation. These gains are significantly higher than gains reported from unilateral liberalisation obtained from a small open economy model. Gains from free trade as a share of GDP are much higher for emerging countries such as China than for other regions in the model.