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Economic and Welfare Impacts of the EU-Africa Economic Partnership Agreements

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  • Sadni Jallab, Mustapha
  • Karingi, Stephen
  • Oulmane, Nassim
  • Perez, Romain
  • Lang, Rémi
  • Ben Hammouda, Hakim

Abstract

Th is study examines the economic and social impacts of the trade liberalization aspects of the proposed Economic Partnership Agreements (EPAs) between the European Union (EU) and African countries. It provides a quantitative assessment of the likely implications of EPAs establishing Free Trade Areas (FTAs) between the EU and the various African Regional Economic Communities (RECs). Th e focus of the empirical analysis is on the trade liberalization component of the EPAs. In particular, the following questions are addressed. First, how will an EPA that includes reciprocal market access agreements between the EU and Africa impact on African countries’ GDPs, levels of employment and other macroeconomic aggregates? Second, what sectors in Africa are most likely to lose and what sectors gain with EPAs? Th ird, what are the welfare implications for African countries from the EPAs? Fourth, how will the formation of EPAs aff ect trade expansion through trade creation and trade diversion eff ects? Fifth, what are the potential fi scal implications of the EPAs? Th e main conclusions drawn from the results and the discussions are that full reciprocity will be very costly for Africa irrespective of how the issue is looked at. A focus on deepening integration with a view to enhancing intra-African trade would provide positive results. But it is the scenario that off ers unrestricted market access for Africa, which deals eff ectively with barriers associated with sensitive European products, that portends the largest gain for the continent. Even with reciprocity, a free trade area that includes sectors of export interest to Africa and one that deals with non-tariff barriers promises positive results for African countries.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12875.

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Date of creation: Mar 2005
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Handle: RePEc:pra:mprapa:12875

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Keywords: EPA- Africa- Europe;

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References

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  1. Patrick J. Kehoe & Timothy J. Kehoe, 1994. "A primer on static applied general equilibrium models," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 2-16.
  2. Brockmeier, Martina, 2001. "A Graphical Exposition of the GTAP Model," GTAP Technical Papers 311, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  3. Philip D. Adams & Mark Horridge & Brian Parmenter & Xiao-Guang Zhang, 1998. "Long-run Effects on China of APEC Trade Liberalisation," Centre of Policy Studies/IMPACT Centre Working Papers g-130, Victoria University, Centre of Policy Studies/IMPACT Centre.
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Cited by:
  1. Karingi, Stephen & Perez, Romain & Oulmane, Nassim & Lang, Rémi & Sadni Jallab, Mustapha, 2006. "Assessment of the Impact of the Economic Partnership Agreement between the COMESA countries and the European Union," MPRA Paper 13294, University Library of Munich, Germany.
  2. Borrmann, Axel & Busse, Matthias & de la Rocha, Manuel, 2007. "Consequences of economic: Partnership agreements between East and Southern African countries and the EU for inter- and intra-regional integration," HWWI Research Papers 2-8, Hamburg Institute of International Economics (HWWI).
  3. Chris Milner, & Oliver Morrissey, & Evious Zgovu, . "Adjusting to Bilateral Trade Liberalisation under an EPA: Evidence for Mauritius," Discussion Papers 07/11, University of Nottingham, CREDIT.
  4. Berisha-Krasniqi, Valdete & Bouet, Antoine & Mevel, Simon, 2008. "Economic partnership agreements between the European Union and African, Caribbean, and Pacific Countries: What is at stake for Senegal," IFPRI discussion papers 765, International Food Policy Research Institute (IFPRI).
  5. Ben Hammouda, Hakim & Karingi, Stephen & Ouedraogo, Ben Idrissa & Oulmane, Nassim & Sadni Jallab, Mustapha, 2006. "Assessing the Consequences of the Economic Partnership Agreement on the Ethiopian Economy," MPRA Paper 13361, University Library of Munich, Germany.
  6. Othieno, Lawrence & Shinyekwa, Isaac, 2011. "Trade, Revenue And Welfare Effects Of The East African Community Customs Union Principle Of Asymmetry On Uganda: An Application Of Wits-Smart Simulation Model," Research Series 150480, Economic Policy Research Centre (EPRC).
  7. Brenton, Paul & Saborowski, Christian & Staritz, Cornelia & von Uexkull, Erik, 2009. "Assessing the adjustment implications of trade policy changes using TRIST (tariff reform impact simulation tool)," Policy Research Working Paper Series 5045, The World Bank.
  8. Oliver Morrissey, & Evious Zgovu, . "The Impact of Economic Partnership Agreements on ACP Agriculture Imports and Welfare," Discussion Papers 07/09, University of Nottingham, CREDIT.
  9. Jean-Marc Philip, 2006. "Le recours aux MEGC pour l’analyse de l’accord de partenariat économique entre l’union européenne et les pays ACP : une revue de la littérature," CAE Working Papers 92, Aix-Marseille Université, CERGAM.
  10. Brenton, Paul & Hoppe, Mombert & Newfarmer, Richard, 2008. "Economic partnership agreements and the export competitiveness of Africa," Policy Research Working Paper Series 4627, The World Bank.
  11. Ben Hammouda, Hakim & Karingi, Stephen & Njuguna, Angelica & Sadni Jallab, Mustapha, 2006. "Diversification: towards a new paradigm for Africa’s development," MPRA Paper 13359, University Library of Munich, Germany.

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