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Economic partnership agreements and the export competitiveness of Africa

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Author Info

  • Brenton, Paul
  • Hoppe, Mombert
  • Newfarmer, Richard

Abstract

Trade can be a key driver of growth for African countries, as it has been for those countries, particularly in East Asia, that have experienced high and sustained rates of growth. Economic partnership agreements with the European Union could be instrumental in a competitiveness framework, but to do so they would have to be designed carefully in a way that supports integration into the global economy and is consistent with national development strategies. Interim agreements have focused on reciprocal tariff removal and less restrictive rules of origin. To be fully effective, economic partnership agreements will have to address constraints to regional integration, including both tariff and non-tariff barriers; improve trade facilitation; and define appropriate most favored nation services liberalization. At the same time, African countries will need to reduce external tariff peak barriers on a most favored nation basis to ensure that when preferences for the European Union are implemented after transitional periods, they do not lead to substantial losses from trade diversion. This entails an ambitious agenda of policy reform that must be backed up by development assistance in the form of"aid for trade."

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4627.

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Date of creation: 01 May 2008
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Handle: RePEc:wbk:wbrwps:4627

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Related research

Keywords: Economic Theory&Research; Free Trade; Emerging Markets; Trade Policy; Trade Law;

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References

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  1. Sadni Jallab, Mustapha & Karingi, Stephen & Oulmane, Nassim & Perez, Romain & Lang, Rémi & Ben Hammouda, Hakim, 2005. "Economic and Welfare Impacts of the EU-Africa Economic Partnership Agreements," MPRA Paper 12875, University Library of Munich, Germany.
  2. Michael Keen & Thomas Baunsgaard, 2005. "Tax Revenue and (or?) Trade Liberalization," IMF Working Papers 05/112, International Monetary Fund.
  3. Brenton, Paul & Hoppe, Mombert, 2007. "Clothing and export diversification : still a route to growth for low-income countries ?," Policy Research Working Paper Series 4343, The World Bank.
  4. El-Agraa,Ali (ed.), 2007. "The European Union," Cambridge Books, Cambridge University Press, number 9780521874434, October.
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Cited by:
  1. Thierry Verdier, 2010. "Regional Integration, Fragility and Institution Building: An Analytical Framework Applied to the African Context," EUI-RSCAS Working Papers 38, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  2. Yaya Sissoko & David Yerger, 2010. "West Africa’s Evolving Competitive Exposure in U.S. Import Markets," International Advances in Economic Research, Springer, vol. 16(1), pages 11-23, February.

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