Assessing the Economic Effects of Trade Barriers

The objective of the paper is to build a simple model which will be easy to use in the assessment of the economic welfare effects due to trade barriers. Traditional partial trade models assume infinitely elastic world supply. The new element in this model is the possibility of operating with different values on the supply and demand elasticity. As an example the model is applied in measuring the welfare economic effects from EU's 13 % ad valorem tax on imported smoked salmon from Norway. The empirical analysis focuses on the Swedish market.