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Should the Caribbean Countries Sign an Economic Partnership Agreement with the EU?: Challenges and Strategic Options

Author

Listed:
  • Busse, Matthias

    () (Hamburg Institute of International Economics)

  • Lüehje, Simon

    (University of Siegen)

Abstract

Currently, the European Union is negotiating an free trade agreement, called Economic Partnership Agreement (EPA), with Caribbean countries as part of the Cotonou Agreement between the European Union and African, Caribbean and Pacific countries. The paper empirically assesses the impact of the proposed EPA on trade flows and government revenue for Caribbean countries. The results indicate that the decline in import duties due to the preferential tariff elimination might be of some cause for concern in a number of countries, and that complementary fiscal and economic policies have to be implemented before or at the time the EPA comes into force.

Suggested Citation

  • Busse, Matthias & Lüehje, Simon, 2007. "Should the Caribbean Countries Sign an Economic Partnership Agreement with the EU?: Challenges and Strategic Options," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 598-618.
  • Handle: RePEc:ris:integr:0408
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    Cited by:

    1. Khadan, Jeetendra & Hosein, Roger, 2014. "Trade, Economic and Welfare impacts of the CARICOM-Canada Free Trade Agreement," MPRA Paper 54836, University Library of Munich, Germany.
    2. Khadan, Jeetendra & Hosein, Roger, 2014. "Trade, Economic and Welfare impacts of the CARICOM-Canada Free Trade Agreement," MPRA Paper 54836, University Library of Munich, Germany.

    More about this item

    Keywords

    Economic Partnership Agreement; EU; Cariforum; Caricom; Caribbean;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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