Premium
The Institutional Challenge of the ACP/EU Economic Partnership Agreements
Author(s) -
Borrmann Axel,
Busse Matthias
Publication year - 2007
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/j.1467-7679.2007.00377.x
Subject(s) - general partnership , international trade , european union , poverty , free trade , government (linguistics) , economic integration , business , liberalization , quality (philosophy) , international economics , economic partnership agreement , trade barrier , economics , development economics , economic growth , market economy , finance , linguistics , philosophy , epistemology
The Economic Partnership Agreements between the African, Caribbean and Pacific countries and the European Union should serve as an opportunity to accelerate ACP global and regional trade integration and as an important tool for development and the eradication of poverty. There are, however, a number of preconditions. This article argues that institutional quality plays a key role in successful trade liberalisation. In fact, only countries with high‐quality institutions, partly in the form of good government regulation, are likely to benefit from trade. Unfortunately, the vast majority of African countries have excessive regulation that hinders them from taking advantage of trade. The necessary reforms to resolve this problem pose significant challenges, implying major risks for these countries in the EPA process.