The European Union–West Africa Economic Partnership Agreement: Small Impact and New Questions
80 Pages Posted: 11 Mar 2017
Date Written: February 28, 2017
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 multicountry, multisector 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 macrolevel 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.
Keywords: Ghana, West Africa, Africa South of Sahara, Africa, Burkina Faso, Cote D'ivoire, Benin, Nigeria, Senegal, Togo, Economics, Trade, Trade Agreements, Poverty, Indicators, Impact Assessment, Fiscal Policies, Reforms, Regional Trade Agreements, Computable General Equilibrium Model, Dual-Dual Model
JEL Classification: F11, F13, F15
Suggested Citation: Suggested Citation