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Asymmetric Regionalism in Sub-Saharan Africa: Where Do We Stand?

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Author Info
Cadot, Olivier
de Melo, Jaime
Olarreaga, Marcelo

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Abstract

The paper reviews the likely economic effects of the Regional Economic Partnership Agreements (REPAs) proposed by the EU to the ACP countries to succeed to the Lomé IV agreements. We argue that, in spite of some likely positive effects because of reciprocity and because of the North-South partnership, the pronounced asymmetries among the Southern partners will lead to strong redistributive and marginalization effects that will require compensations that are likely to be costly to implement. It is also pointed out that efforts at regional cooperation agreements would avoid some of the shortcomings associated with the proposed discriminatory trade preferences that would accompany the proposed REPAs. And if the REPAs are negotiated, they should be accompanied by compensatory transfers from the EU for tax revenues losses attributable to the agreements.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2299.

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Date of creation: Nov 1999
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Handle: RePEc:cpr:ceprdp:2299

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Related research
Keywords: asymmetry; Comparative Advantage; Compensation; Regionalism;

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Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

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  1. L. Alan Winters, 1997. "What Can European Experience Teach Developing Countries About Integration?," The World Economy, Blackwell Publishing, vol. 20(7), pages 889-912, November. [Downloadable!] (restricted)
  2. Cadot, Olivier & de Melo, Jaime & Olarraga, Marcelo, 1999. "Regional Integration and Lobbying for Tariffs against Nonmembers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 635-57, August.
    Other versions:
  3. Rodrik, Dani, 1998. "Why Is Trade Reform So Difficult in Africa?," Journal of African Economies, Oxford University Press, vol. 7(0), pages 43-69, June.
  4. Olarreaga, Marcelo & Soloaga, Isidro, 1998. "Endogenous Tariff Formation: The Case of Mercosur," World Bank Economic Review, Oxford University Press, vol. 12(2), pages 297-320, May.
    Other versions:
  5. Fernandez, Raquel & Portes, Jonathan, 1998. "Returns to Regionalism: An Analysis of Nontraditional Gains from Regional Trade Agreements," World Bank Economic Review, Oxford University Press, vol. 12(2), pages 197-220, May.
  6. Brada, Josef C & Mendez, Jose A, 1988. "An Estimate of the Dynamic Effects of Economic Integration," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 163-68, February. [Downloadable!] (restricted)
  7. Wang, Zhen Kun & Winters, L Alan, 1998. "Africa's Role in Multilateral Trade Negotiations: Past and Future," Journal of African Economies, Oxford University Press, vol. 7(0), pages 1-33, June.
  8. Michaely, Michael, 1996. "Trade preferential agreements in Latin America : an ex-ante assessment," Policy Research Working Paper Series 1583, The World Bank. [Downloadable!]
  9. Cadot, Olivier & de Melo, Jaime, 1994. "The Europe Agreements and EC-LDC Relations," CEPR Discussion Papers 1001, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Sapir, Andre, 1998. "The political economy of EC regionalism," European Economic Review, Elsevier, vol. 42(3-5), pages 717-732, May. [Downloadable!] (restricted)
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