Morocco's Free Trade Deal with EU Boosts Welfare by 2.5% of GDP
The study analyzed how a free trade agreement between Morocco and the EU would impact Morocco's economy using a special modeling technique. They found that this agreement could boost Morocco's welfare by around 1.5% of its GDP without causing trade diversion. By also adding global trade liberalization, the gains could reach up to 2.5% of Morocco's GDP with only slightly higher adjustment costs. The researchers also looked at how certain assumptions and choices can influence these estimates, showing that global trade liberalization doesn't lead to trade diversion.