Lomé to Cotonou conventions: trade policy alternatives for the Senegalese groundnut sector
The signing of the Cotonou Convention in June 2000 established a new trading relationship between the European Union and African, Caribbean, and Pacific States. Negotiations to establish new trading arrangements have already commenced and will lead to the establishment of economic partnership agreements or other viable alternatives. In this study, the economic impact on the Senegalese groundnut sector is assessed for the case in which Senegal enters into an economic partnership agreement with the European Union, or into an enhanced form of the Generalized System of Preferences. The preferred choice depends on whether Senegal's economic status classifies it as a least developed country (LDC) or not, as well as on other external trading arrangements. Findings indicate that as a non-LDC, the best option for Senegal would be to enter into an economic partnership agreement. As a LDC, the best option would be to move to the enhanced generalized system of preferences, thereby allowing Senegal to retain Lomé-style trade preferences. Furthermore, increased development funding under the Cotonou Convention could help shield the Senegalese groundnut sector from adverse economic impacts arising from either trading option. Copyright 2005 International Association of Agricultural Economics.
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Volume (Year): 33 (2005)
Issue (Month): 3 (November)
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