08 Apr

These so-called dynamic commercial benefits are not only very important sources of increase in medium- and long-term growth rates. They are also more difficult to model and study empirically for developing countries such as African ACP countries. Most importantly, it is difficult to find appropriate data for sophisticated models that take into account the specific economic and political situation in ACP countries. As a result, most researchers focus on traditional static gains from trade, which lack these more advanced effects. The EPAs came into force in January 2008. The only comprehensive EPA that has been the result of an agreement is the CARIFORUM group of Caribbean countries. The EPA, negotiated between 2004 and 2007, includes chapters on trade in goods, trade in services, investment, competition, innovation, intellectual property, public procurement and development assistance. As a result, much of the EPO`s original agenda was included in this agreement. It is important that there be significant delays before Caribbean countries are forced to open their markets to EU products duty-free. While the EU immediately abolished all tariffs and quotas for Caribbean producers (with the exception of sugar and rice, for which longer periods have been agreed), there is a gradual opening of Caribbean markets to EU products over a 25-year period (2), although EU and ACP governments have recognised that the static and dynamic effects of trade and rice on rice ACP countries are essential to the long-term development of ACP countries. There is less agreement on how to ensure that trade and, directly (and therefore EPAs), are actually beneficial to ACP countries. Indeed, in recent years, a number of studies have analysed the conditions for successful commercial growth and a link between trade and growth.

While the results of these studies are of great importance to policy makers, it is surprising that EU and ACP governments have not yet incorporated these results into the design of EPAs. The overall goal of EPAs is to contribute, through trade, to sustainable economic growth and poverty reduction in ACP countries. The agreement also provides for relaxed rules of origin for a number of agricultural products considered by the ESA region to be important for their trade with the EU. The rules of origin used in the final EPA have yet to be negotiated. In June 2016, the EU signed an Economic Partnership Agreement (EPA) with members of the EPA Group of the Southern African Development Community (CDAA), including: EPAs with sub-Saharan Africa and other free-trade agreements EU trade with North African countries are building blocks of the Continental Free Trade Area (AfCFTA) and the long-term prospect of a free trade agreement between the United States and the continents.