The EU's Free–trade Agreements with Developing Countries: A Case of Wishful Thinking?

Matthew McQueen

The World Economy, 2002, vol. 25, issue 9, 1369-1385

Abstract: Since the middle of the1990s the EU has vigorously pursued a policy of replacing non– reciprocal preferences for the developing countries in the Mediterranean, Latin America and with South Africa, with bilateral free–trade agreements. This article examines the content of these agreements and the empirical evidence on their likely effects and concludes that they are ‘broad’ but ‘shallow’ agreements. The static effect are likely to be very small or negative while the potential dynamic gains are problematic, especially regarding the concept of a ‘lock in’ to trade liberalisation, unless there are greater commitments to trade related issues by both sides and especially by the EU.

Date: 2002
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