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GTAP Resources: Resource Display

GTAP Resource #3208

"From unilateral preferences to Reciprocity: Impact of the ACP – EU EPA on ESA countries"
by Rojid, Sawkut and Vinaye Ancharaz

Trade, between ACP countries and the EU countries, has, for more than half a decade, been characterised by non-reciprocity. However, this non-reciprocal system goes against the principles of trading under the WTO. The Cotonou Partnership Agreement (CPA) was signed in the year 2000, time at which Lomé IV expired, to revisit the trading system in an attempt to render trade between EU and ACP countries WTO compatible. In order to justify, within the WTO, the continuation of preferences for ACP exporters, the EU has expressed strongly that the form that this new agreement has to take should be in the form of an Economic Partnership Agreement (EPA). 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.

Resource Details (Export Citation) GTAP Keywords
Category: 2010 Conference Paper
Status: Published
By/In: Presented at the 13th Annual Conference on Global Economic Analysis, Penang, Malaysia
Date: 2010
Created: Rojid, S. (3/2/2010)
Updated: Rojid, S. (3/3/2010)
Visits: 1,957
- Preferential trading arrangements
- Calibration and parameter estimation
- The GTAP Data Base and extensions
- Africa (Southern)

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