Simon J. Evenett | 12 Aug 2020

This analysis identifies where foreign trade distortions put at risk significant shares of the exports of the German mechanical engineering sector. Although initiated before the COVID-19 pandemic, by focusing on the policies holding back German mechanical engineering exports at the beginning of 2020, this study provides a benchmark against which pandemic-era policies affecting trade can be judged. This study goes beyond traditional import restrictions, such as tariffs and anti-dumping duties and takes account of subsidies to import-competing firms, export incentives provided by foreign governments to their firms selling into third markets, as well as new regulations that may become barriers to trade. Estimates of the percentage of German mechanical engineering exports facing each of these policies in every foreign trading partner have been calculated too.