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


  • Busse, Matthias

    () (Hamburg Institute of International Economics)

  • Lüehje, Simon

    (University of Siegen)


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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    References listed on IDEAS

    1. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
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    7. Jong-Wha Lee, 1993. "International Trade, Distortions, and Long-Run Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 40(2), pages 299-328, June.
    8. Brueckner, Jan K, 1990. "Analyzing Third World Urbanization: A Model with Empirical Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 587-610, April.
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    11. Henderson, Vernon, 2000. "How urban concentration affects economic growth," Policy Research Working Paper Series 2326, The World Bank.
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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. Jeetendra Khadan & Roger Hosein, 2016. "Trade, Economic and Welfare Impacts of the CARICOM-Canada Free Trade Agreement," IDB Publications (Working Papers) 7887, Inter-American Development Bank.

    More about this item


    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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