Comments

Summary

This paper addresses topics of considerable concern to both policymakers and researchers. For example, how will trade flows from transitioning economies in Eastern Europe affect economies in the West? How important are restrictions on trade in “sensitive” sectors? The paper also presents a variety of interesting facts and figures about recent trade developments.

I see two main conclusions of the paper. First, it documents that there has been a significant increase in trade between the CEEC-6 and its Western European trading partners, especially Germany. Second, the rise in Western European imports of “sensitive” goods has been quite a bit smaller than the overall rise in imports and the paper suggests that this is largely attributable to trade restrictions. The paper's two main findings are broadly sensible. However, I have some questions about aspects of the paper. I would also like to offer some alternative interpretations of some of the authors' findings. In my comments, I will follow the general outline in the paper.

The first section of the paper provides a useful and informative overview of recent developments in trade flows between the CEEC-6 and five Western European countries. In particular, it documents that trade with the CEEC-6 has increased as a share of the West's total trade, and that Germany, France, Italy, and the UK (but not Portugal) have seen an improvement in their trade balances vis-á-vis the CEEC-6.