Nopoor Policy Brief Nr.38: The Economic Partnership Agreement between the EU and West Africa: Are there really Benefits for West Africa
Neo-classical economic theory contends that trade is an engine of growth and free trade agreements are the catalyst towards achieving that growth. The Economic Partnership Agreement (EPA) negotiated between West Africa and the EU proposes a free-trade regime between the two regions. But, is this EPA really beneficial for West Africa? This policy brief seeks to answer this question by bringing evidence on macro and micro impacts of such an agreement generated using a dynamic multicountry Computable General Equilibrium model (CGE). Our empirical estimation indicates that opening African markets for European products at a level that reach 75 percent of the tariff lines will have a bad impact on the economies in West Africa, especially when there are no accompanying programs.