An article “Wine: The punching bag in trade retaliation” published in the journal Food Policy concludes that recent trade disputes threaten to reduce wine trade by nearly $340 million annually and significantly reduce consumer welfare, while complete trade liberalisation would expand trade by about $76 million.

The study analyses the impact of tariffs and tariff retaliation by estimating a structural gravity model of global wine trade, and then simulates the effects of tariffs and tariff retaliation, as well as the effects of trade liberalisation, on trade and welfare in the international market for wine.

 

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