Measuring the economic impacts of trade liberalisation on forest products trade in the Asia-Pacific region using the GTAP model

Abstract

The paper examines the effects of unilateral trade liberalisation of forest products amongst the Asia-Pacific Economic Cooperation (APEC) member countries. It attempts to quantify the gains from liberalised trade when APEC member countries extend their preferential treatment to non-member countries in forest products trade using the Global Trade Analysis Project (GTAP) model. Given that forest products comprise only a relatively small proportion of world merchandise trade, it is expected that trade liberalisation would cause small changes in terms of trade, real GDP, production, consumption and prices of forest products amongst APEC member countries. The results suggest that in general, when more countries participate in trade liberalisation the more welfare could be improved with the exception of the region North America which is comprised of three countries, the United States of America, Canada and Mexico.