Better Agri-food Trade Modelling for Policy Analysis

Economy-wide assessments of regional trade agreements often fall short of capturing the complexity of agri-food trade
policies especially in the case of major structural changes (as market concentration and global value chain issues). “New
generation” trade agreements include many aspects beyond traditional trade policies. Consumer concerns are increasing
about food quality and safety, environmental implications, as well as ethical concerns about the way food is produced and its
impact on poverty, job destruction and increasing inequality. BATMAN will advance assessments of agri-food trade policies
as follows: (1) by improving the theoretical underpinning and methodologies of partial and general equilibrium models in exante
trade assessments; (2) based on micro-level evidence, by improving our understanding and modelling of value chain to
enable more precise impact assessments (gains and losses, between and within member states, between and within groups
of agents); and (3) by integrating econometric estimations into existing simulation models at micro- and macro-level, which
will allow the analysis of extended welfare effects, like inclusiveness and sustainable development goals. The core
contribution will be the BATMAN Modular Platform for agri-food trade modelling that will equip the analytical tools, in
particular the simulation models currently used by the European Commission (EC), for the analysis of 21st-century agri-food
trade issues. BATMAN will provide a new modular generation of trade models to support the EC, policy-makers and other
stakeholders to better account for specific issues such as non-tariff measures, geographical indications, zero trade flows,
quality differentiation and global value chains. The BATMAN Modular Platform will ensure long-term impact of the project.
The dedicated BATMAN Dissemination and Stakeholder Platform will ensure close interactions with stakeholders to provide
and disseminate relevant trade policy analyses.