EEC's protectionist policies and South Asian exports

Abstract

The traditional partial equilibrium trade model provides a suitable framework of analysis for evaluating protectionist trade policies of the EEC and their implications for South Asia's exports. A brief discussion of the model will highlight the issues involved. To simplify we assume two countries: the domestic (South Asia) exporting to the foreign (EEC) country. Export supply and import demand factors uld determine the volume of trade, mestic demand, domestic supply and export policy are the factors that influence export supply while foreign demand, foreign supply and import policy determine import demand. These six broad factors describe the constraints that may prevent an increase in the volume of exports from the domestic to the foreign economy. It is important to note that the constraints that are binding will differ among commodity groups and will change over time.