Dr. Werner Raza:

To clarify, when I speak about 0.5% to 1% of GDP, I am not talking about growth but income effects. The two must be sharply distinguished. Free trade agreements increase the purchasing power of households in so far as imported goods and services become cheaper. With a given income, households can afford to buy more. That is what is measured by the studies to which I referred. The figure of 0.5% to 1% of GDP refers to the income gain to households in Europe. It is not a growth effect. A growth effect would only emerge if companies, as a consequence of trade liberalisation, begin to invest more. Then we would have an effect on growth.