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GTAP Resources: Resource Display

GTAP Resource #548

"Renegotiating the Lome Convention: Trade Policy Schemes and their Effects for African Region"
by Kerkela, Leena, Janne Niemi and Risto Vaittinen


Abstract
In this study we evaluate two different trade policy scenarios between European Union and African regions. The quantitative impacts of these policies are analysed by multiregional general equilibrium model (GTAP). In most African countries, the trade with the EU has been governed by the Lomé Convention, which has offered non-reciprocal duty-free access for most of their imports to the EU. With the new Cotonou Agreement, these relationships are aimed to be compatible with WTO rules by building economic agreements between partners. We analyze these agreements as free trade areas and study how they compare to GSP system, which is available for most of African countries. Supplementary data on GSP tariffs has been implemented to GTAP database using the TRAINS database produced by UNCTAD. Results show the negative effects of both free trade areas and the GSP system on GDP, although welfare effects in the free trade area case may turn positive when assuming the labor supply to adjust to the new situation. Negative effects are mainly based on declining price level of African commodities. The phasing out of the Multifibre Arrangement has been studied separately to analyze its importance to African countries.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: HSEBA Working Papers W-261
Date: 2000
Version:
Created: (4/5/2001)
Updated: Niemi, J. (1/12/2002)
Visits: 1,528
- Trade in textiles and wearing apparel


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