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Journal of Economic Integration 2007 September;22(3) :598-618.
DOI: https://doi.org/10.11130/jei.2007.22.3.598
Should the Caribbean Countries Sign an Economic Partnership Agreement with the EU?: Challenges and Strategic Options
Matthias Busse and 
Simon Lüehje 
Hamburg Institute of International Economics
University of Siegen
Copyright ©2007 Journal of Economic Integration
ABSTRACT

Currently, the European Union is negotiating an free trade agreement, called Economic Partnership Agreement (EPA), with Caribbean countries as part of the Cotonou Agreement between the European Union and African, Caribbean and Pacific countries. The paper empirically assesses the impact of the proposed EPA on trade flows and government revenue for Caribbean countries. The results indicate that the decline in import duties due to the preferential tariff elimination might be of some cause for concern in a number of countries, and that complementary fiscal and economic policies have to be implemented before or at the time the EPA comes into force.

JEL classification: F15, O24, O54

Keywords: Economic Partnership Agreement | EU | Cariforum | Caricom | Caribbean
 
REFERENCE
1. Brenton, Paul and Miriam Manchin (2003), Making EU Trade Agreements Work: The Role of Rules of Origin, World Economy, Vol. 26, No. 5, pp. 755-769.
2. Brenton, Paul (2003), Integrating the Least Developed Countries into the World Trading System: The Current Impact of EU Preferences under Everything But Arms, Journal of World Trade, Vol. 37, No. 3, pp. 623-646.
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