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EU Trade Agreements Expected to Have Small Positive Impact on GDP and Welfare

The European Union is expected to see small but positive impacts on its Gross Domestic Product (GDP) and welfare as a result of recently concluded trade agreements with Canada, Japan, and Vietnam.

According to a study by the European Commission, the agreements will lead to a small boost in trade and larger gains in specific sectors. However, the impact is dependent on non-tariff barriers (NTBs) in both trade in goods and services being substantially reduced, as tariff liberalization alone is not capable of generating substantial economic gains.

Sectoral Impact of FTAs

The sectoral impact of the currently-negotiated Free Trade Agreements (FTAs) on EU producers is expected to be tiny, with neither large gains nor losses anticipated. Unlike FTAs concluded with developed countries, however, the environmental implications of agreements under negotiation could be very important, especially in the spheres of land use and deforestation.

Money Laundering a Growing Concern

Meanwhile, money laundering remains a significant concern for the EU, particularly in Albania, where the Financial Intelligence Unit (GDPML) is responsible for monitoring and supervising illegal activities.

A recent study by the International Banking Association (IBA) found that the regulation of European offshore centers would be a first promising step in combating money laundering. A homogeneous European anti-money laundering and anti-tax evasion policy would need a differentiated EU approach for different groups of Member States, rather than a one-size-fits-all approach.

Institutions Involved in Combating Money Laundering

In Albania, institutions involved in combating illegal activities include:

• The Coordination Committee for the Fight against Money Laundering (CCFML), which is responsible for planning and directing anti-money laundering policy.
• The Albanian State Police (ASP), which has a Directorate for Investigation of Economic Financial Crime (DIEFC) that investigates money laundering offenses.
• The General Prosecutor’s Office (GPO), which exercises criminal prosecution and brings charge trials in the name of state.
• The General Directorate of Customs (GDC), which cooperates with other law enforcement structures and sends reports to prosecutor’s offices for criminal offenses identified in the customs area.
• The General Directorate of Taxation (GDT), which targets crimes in the economic field, including money laundering.
• The Agency for the Administration of Seized and Confiscated Assets (AASCA), which performs its activity in cooperation with other relevant institutions.

These institutions work together to combat money laundering and terrorist financing, and exchange information with each other to prevent and prosecute these offenses.