Analytical Note, November 2011

This study provides a simple cost-benefit analysis of the Economic Partnership Agreements (EPAs) between African countries and the European Union. It compares the costs of signing an EPA - measured as tariff revenue losses, versus the “gains” of signing an EPA - measured as duties African countries would avoid paying if they were to export to the EU market under the EU’s Generalised System of Preferences (GSP) scheme. The major question therefore is whether the tariff revenue losses resulting from the EPA outweigh the duties that countries would have to pay in a non-EPA scenario? Do the losses of EPAs outweigh the “gains”?

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