Economic Impact of Non-Tariff Barriers Arising from Regulatory Divergence Between the US and EU

EasyChair Preprint no. 13604, version 2

Abstract

The economic relationship between the United States (US) and the European Union (EU) is one of the largest and most significant in the global economy. Despite robust trade and investment flows, non-tariff barriers (NTBs) arising from regulatory divergence remain a substantial impediment to deeper economic integration. This research examines the economic impact of these NTBs, focusing on how differences in regulatory standards and compliance requirements affect trade flows, market efficiency, and economic welfare.

Methodology

This study employs a mixed-methods approach, combining quantitative econometric analysis with qualitative case studies. Trade data between the US and EU from 2000 to 2023 is analyzed to identify patterns and quantify the impact of NTBs on trade volumes, costs, and market access. Econometric models are used to estimate the elasticity of trade with respect to NTBs. In addition, case studies of key industries, including automotive, pharmaceuticals, and agriculture, provide in-depth insights into sector-specific regulatory challenges and their economic consequences.

Keyphrases: economic impact, economic welfare, Market Fragmentation, non-tariff barriers, regulatory cooperation, Regulatory Divergence, Trade Policy, US-EU Trade

@Booklet{EasyChair:13604,
  author = {Adeoye Ibrahim},
  title = {Economic Impact of Non-Tariff Barriers Arising from Regulatory Divergence Between the US and EU},
  howpublished = {EasyChair Preprint no. 13604},

  year = {EasyChair, 2024}}