Since production and trade are increasingly organized within global value chains (GVCs), assessing who effectively pays the cost of protection is not straightforward, and since production processes are internationallyfragmented, quantifying the effects of trade policy requires an enhanced analytical framework that takes international input–output linkages into account to assess the implications trade costs have on competitivenessat national and sector levels. At the same time, there is growing evidence showing that countries and sectors participation in GVCs change the government incentive to rise trade policy. This deliverable addresses these two issues presenting new empirical evidence on the interlink between GVC participations and their implications for trade costs and to what extent the GVC participation affected the government choices about tariffs and non-tariff-measures (NTMs) to trade.