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Abstract
The ex-ante effects of trade agreements are usually predicted with economy-wide models under a general equilibrium closure so that inter-industry linkages are accounted for in the policy simulation. However, modern trade agreements increasingly have policies that target specific industries and are not easily accounted for in the economy-wide analysis. In these instances, partial equilibrium (PE) models can play a key role in the analysis by examining in detail the impact of industry-specific trade provisions and then incorporating these expected trade effects in the overall economy-wide model. This paper shows how PE models can be used to map industry-specific trade policies and highlights some provisions in the recent U.S.-Mexico-Canada Agreement (USMCA) that are well suited for a PE analysis.