In particular,
we see that agricultural market access talks play a crucial role: they
increase the overall gain but also reduce the inequalities driven by NAMA
liberalisation.Simultaneously, trade negotiation cannot take place if only
liberalisation in agriculture is negotiated, as the core of the game would be
empty. Moreover, the adoption of tariff-harmonising formulae (more cuts in
higher import tariffs) leads to greatly increased global gains. Finally, the
dramatic complexity in the current structure of protection and market access
convincingly explains why trade negotiations are so difficult today. Thus, it
does not seem surprising that our game-theoretic CGE approach concludes with
a rather pessimistic statement: status quo is often the Nash solution.