From unilateral preferences to Reciprocity: Impact of the ACP – EU EPA on ESA countries

Sawkut Rojid and Vinaye Dey Ancharaz

No 332022, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper attempts to analyze the welfare impact of the creation of the EU-ESA Economic Partnership Agreement, on ESA members against a benchmarked scenario which is the multilateral liberalization scenario. Ten regions by ten sectors aggregation of the GTAP model is used. The sector aggregation takes care of sensitive products which ESA countries decided not to liberalise for obvious reasons. While the EPAs is implemented as from 2008 and all the data, including the protection data, in the GTAP database version 6.1 has the common reference year of 2001, the dataset is updated to reflect (i) the EU enlargement and (ii) the phase out of the Multi Fibre Agreement. Four different experiments are simulated. Results show that (i) although under all scenarios welfare effect increase, Uganda and Madagascar tend to benefit the least and (ii) for some countries, such as Madagascar, Malawi and Zimbabwe, the required overall structural adjustment is low.

Keywords: International Relations/Trade; International Development (search for similar items in EconPapers)
Pages: 20
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332022

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