The European Union–West Africa Economic Partnership Agreement: Small impact and new questions. Issue 1 (2nd January 2018)

• Record Type: Journal Article
• Authors: Bouët, Antoine; Laborde, David; Traoré, Fousseini
• Is Part Of: Journal of international trade & economic development. Volume 27:Issue 1(2018)
• Page Start: 25
• Page End: 53
• Publication Date: 2018-01-02
• Subjects: Regional trade agreements -- computable general equilibrium model -- dual–dual model; F11 -- F13 -- F15; International trade -- Periodicals; Economic development -- Periodicals; 337
• DOI: 10.1080/09638199.2017.1337803
• Languages: English
• ISSNs: 0963-8199

Abstract

ABSTRACT: Despite recent modifications, the Economic Partnership Agreement (EPA) between the European Union (EU) and West African (WA) countries is still being criticized for its potential detrimental effects on WA countries. This paper provides updated evidence on the impact of the EPA on these countries. A dynamic multi-country, multi-sector computable general equilibrium trade model with modeling of the dual–dual economy and with a consistent tariff aggregator is used to simulate a series of new scenarios that include updated information on the agreement. We also go beyond estimating macro-level economic effects to analyze the impacts on poverty. The policy simulation results show that the implementation of the EPA between the EU and WA countries would have marginal but positive impacts on Burkina Faso and Côte d'Ivoire and negative impacts on Benin, Ghana, Nigeria, Senegal, and Togo. The impact on poverty indicators in Ghana and Nigeria would be marginal. From the perspective of WA countries, this study supports the view that recent EU concessions are not sufficient and that domestic fiscal reforms are needed in WA countries themselves.