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

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  • Cadot, Olivier
  • de Melo, Jaime
  • Olarreaga, Marcelo

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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Bibliographic Info

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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References

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  1. Cadot, Olivier & de Melo, Jaime & Olarreaga, Marcelo, 1996. "Regional Integration and Lobbying for Tariffs Against Non-members," CEPR Discussion Papers 1448, C.E.P.R. Discussion Papers.
  2. 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.
  3. André Sapir, 1998. "The political economy of EC regionalism," ULB Institutional Repository 2013/8156, ULB -- Universite Libre de Bruxelles.
  4. Olarreaga, Marcelo & Soloaga, Isidro, 1998. "Endogenous Tariff Formation: The Case of Mercosur," World Bank Economic Review, World Bank Group, vol. 12(2), pages 297-320, May.
  5. Fernandez, Raquel & Portes, Jonathan, 1998. "Returns to Regionalism: An Analysis of Nontraditional Gains from Regional Trade Agreements," World Bank Economic Review, World Bank Group, vol. 12(2), pages 197-220, May.
  6. Cadot, Olivier & de Melo, Jaime, 1994. "The Europe Agreements and EC-LDC Relations," CEPR Discussion Papers 1001, C.E.P.R. Discussion Papers.
  7. Grilli,Enzo R., 1993. "The European Community and the Developing Countries," Cambridge Books, Cambridge University Press, number 9780521385114.
  8. L. Alan Winters, 1997. "What Can European Experience Teach Developing Countries About Integration?," The World Economy, Wiley Blackwell, vol. 20(7), pages 889-912, November.
  9. Rodrik, Dani, 1998. "Why Is Trade Reform So Difficult in Africa?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(0), pages 43-69, June.
  10. Wang, Zhen Kun & Winters, L Alan, 1998. "Africa's Role in Multilateral Trade Negotiations: Past and Future," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(0), pages 1-33, June.
  11. Michaely, Michael, 1996. "Trade preferential agreements in Latin America : an ex-ante assessment," Policy Research Working Paper Series 1583, The World Bank.
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Citations

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Cited by:
  1. Oyejide Ademola, 2002. "Working Paper 62 - Policies for Regional Integration in Africa," Working Paper Series 196, African Development Bank.
  2. S. Standaert & G. Rayp, 2012. "Regional Integration Agreements and Rent-Seeking in Africa," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/773, Ghent University, Faculty of Economics and Business Administration.
  3. Zafar, Ali, 2005. "Revenue and the fiscal impact of liberalization : the case of Niger," Policy Research Working Paper Series 3500, The World Bank.

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