Protection costs Europe 7% of GDP

10 November 1999



Protection costs Europe 7% of GDP

TRADE protection, including that afforded agriculture, costs the EU 6-7% of gross domestic product (GDP), according to a study by a leading French economist.

Patrick Messerlin claims his study measures all types of protection, including anti-dumping measures, non-tariff barriers and subsidies, as well as tariffs.

It says this level of “global protection” has amounted since 1990 to 13-14% of the output of EU goods.

This is two to three times higher than previously estimated.

Messerlins study is based on an analysis of 22 of the most highly protected agricultural, industrial and services sectors in the European Union.

It puts the economic cost of trade barriers in these sectors at 100 billion (£64bn) in 1990.

The study finds that the levels of protection in EU manufacturing are higher even than in agriculture.

• Financial Times 10/11/99 page 16