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Economic partnership agreements and the export competitiveness of Africa

Author

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  • Brenton, Paul
  • Hoppe, Mombert
  • Newfarmer, Richard

Abstract

Trade can be a key driver of growth for African countries, as it has been for those countries, particularly in East Asia, that have experienced high and sustained rates of growth. Economic partnership agreements with the European Union could be instrumental in a competitiveness framework, but to do so they would have to be designed carefully in a way that supports integration into the global economy and is consistent with national development strategies. Interim agreements have focused on reciprocal tariff removal and less restrictive rules of origin. To be fully effective, economic partnership agreements will have to address constraints to regional integration, including both tariff and non-tariff barriers; improve trade facilitation; and define appropriate most favored nation services liberalization. At the same time, African countries will need to reduce external tariff peak barriers on a most favored nation basis to ensure that when preferences for the European Union are implemented after transitional periods, they do not lead to substantial losses from trade diversion. This entails an ambitious agenda of policy reform that must be backed up by development assistance in the form of"aid for trade."

Suggested Citation

  • Brenton, Paul & Hoppe, Mombert & Newfarmer, Richard, 2008. "Economic partnership agreements and the export competitiveness of Africa," Policy Research Working Paper Series 4627, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4627
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    References listed on IDEAS

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    2. Thierry Verdier, 2010. "Regional Integration, Fragility and Institution Building: An Analytical Framework Applied to the African Context," EUI-RSCAS Working Papers 38, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    3. Yaya Sissoko & David Yerger, 2010. "West Africa’s Evolving Competitive Exposure in U.S. Import Markets," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(1), pages 11-23, February.

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    Keywords

    Economic Theory&Research; Free Trade; Emerging Markets; Trade Policy; Trade Law;
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