The Government will ensure that Parliament can inform the Government`s negotiating approach and consider new trade agreements. The indirect approach is used in this evaluation. Based on best practices in literature, a gravity model is used to provide estimates of the level of and regulatory restrictions applicable to commercial services in different countries. Gravitational modelling is an economic framework for assessing the determinants of international trade patterns. It is referred to as the “working horse of international trade” because it is able to coherently explain international trade patterns. [footnote 152] The estimation method used here follows a methodology developed by the Centre for Prospective Studies and International Information (CEPII). [footnote 153] OECD (2018), “Assessing the Effectiveness of Environmental Commissions in Regional Trade Agreements”. The OECD has found a positive link between joining regional trade agreements and improving environmental quality for two out of three pollutants treated as substitutes for environmental quality. However, it has not been possible to determine with statistical certainty the extent to which environmental legislation has contributed concretely to the improvement.
↩ Australia is already an important trade and investment partner for Britain. This is especially true for vehicles, machinery, chemicals, travel services, financial services and professional business services. Australia was the UK`s 12th largest export market in 2018 and accounted for almost 2% of the UK`s total exports. In 2018, total trade between Australia and the UK was £17 billion. [footnote 42] A free trade agreement is an international agreement aimed at increasing trade and investment between its signatories by removing or reducing tariffs, NTDs and regulatory restrictions on services that prohibit, eliminate or reduce investment and trade between partner countries. [footnote 30] Regional merchandise trade between the UK and Australia is most concentrated in the north-east, from where 2% of the region`s exports go to Australia. . .