The effect of free trade agreements (FTAs) should not be measured solely by their content, according to Lucian Cernat of the think-tank ECIPE, which published a report on the placebo and nocebo effect of agreements on Thursday 27 June. In his view, if the stakeholders are convinced of the benefits of an agreement, positive effects can be generated in terms of trade volumes, attitudes towards the partner country, etc.
The placebo effect is defined in the document as a policy intervention...