Executive Summary

BATModel aimed to improve general and partial equilibrium models for use in (ex-ante) impact assessments of trade policies. Four teams dealing with the partial equilibrium model CAPRI and the three computable general equilibrium (CGE) models CGEBOX, MAGNET, and MIRAGE performed a test case scenario for the EU-Canada Comprehensive Economic and Trade Agreement (CETA). To evaluate the success of BATModel, the test case compared the models results of assessing the Free Trade Agreement (FTA) simulated with two versions of each model, namely with improvements implemented at the end of BATModel and without.
During the life of the project, the models were developed looking at new data, new module to improve the model behaviour and newly developed indicators.
The test case has been useful to see how behaviour of each model changes when newly developed modules are added providing first insight on how the project developments may enhance and/or alter ex-ante trade policy analyses. Specifically, the project developments may alter already used indicators to assess trade agreements (like GDP, trade flows etc,) or provide new indicators offering a broader view on the implications of trade agreements.
The exercise of running the same simulation with different model versions showed that, in most cases, the newly developed modules did not trigger visible changes in terms of impacts of the CETA on the involved countries while the new additions caused visible impacts on the model baseline. The development of the new indicators on jobs, wages and wage-income distribution helps to broaden the model assessments of upcoming FTAs and adding product details (products & GVCs) increases expected response from FTA. Finally, the case of Spatial Price Equilibrium for selected products shows that transferring modules from CGE to PE is a real possibility acting as a proof of principle of transferring module between models which are very different in terms of structure.