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The Institutional Challenge of the ACP/EU Economic Partnership Agreements

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  • Axel Borrmann
  • Matthias Busse

Abstract

The Economic Partnership Agreements between the African, Caribbean and Pacific countries and the European Union should serve as an opportunity to accelerate ACP global and regional trade integration and as an important tool for development and the eradication of poverty. There are, however, a number of preconditions. This article argues that institutional quality plays a key role in successful trade liberalisation. In fact, only countries with high-quality institutions, partly in the form of good government regulation, are likely to benefit from trade. Unfortunately, the vast majority of African countries have excessive regulation that hinders them from taking advantage of trade. The necessary reforms to resolve this problem pose significant challenges, implying major risks for these countries in the EPA process. Copyright 2007 Blackwell Publishing Ltd.

Suggested Citation

  • Axel Borrmann & Matthias Busse, 2007. "The Institutional Challenge of the ACP/EU Economic Partnership Agreements," Development Policy Review, Overseas Development Institute, vol. 25(4), pages 403-416, July.
  • Handle: RePEc:bla:devpol:v:25:y:2007:i:4:p:403-416
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    Cited by:

    1. Dirk Kohnert, 2008. "EU-African Economic Relations: Continuing Dominance Traded for Aid?," GIGA Working Paper Series 82, GIGA German Institute of Global and Area Studies.
    2. Kenneth Baltzer, 2015. "Institutional and policy adjustments to implement Free Trade Agreements with the European Union: A developing country perspective," WIDER Working Paper Series 127, World Institute for Development Economic Research (UNU-WIDER).

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