EFFECTS OF ECONOMIC PARTNERSHIP AGREEMENTS BETWEEN ECOWAS AND THE EU ON THE AGRICULTURAL TRADE OF ECOWAS BLOC

Abstract

Treaty is now a global phenomenon that Custom unions sign in order to gain trade benefits. It enables them integrate into the world economy and reap the dividends offered by globalization. Broadly, this study examined the Effects of Economic Partnership Agreements between ECOWAS and the EU on the Agricultural trade of ECOWAS bloc. Specifically, the study described the patterns (types, sources, volume and sensitive products) of the agricultural imports of ECOWAS bloc, estimated the potential trade creation and diversion effects of EPAs on their agricultural trade, estimated the potential revenue effects of EPAs on their agricultural trade, estimated the potential welfare effects of EPAs on their Agricultural trade. World Integrated Trade Solutions provided access to secondary data used for the study. An online Self-Monitoring and Reporting Technology Partial Equilibrium Analysis methodology was used to realize the objectives of the study. The result showed that ECOWAS bloc recorded its highest agricultural imports of US$6,242.6 million pre-EPA and US$5,607.8 million post-EPA from ROW. European Union recorded its highest agricultural import of US$ 7,351.3 million pre-EPA and US$8,231.4 million post-EPA from its EU bloc. ECOWAS gained US$198.9 million in Trade creation and loses US$58.4 million in Trade Diversion. Furthermore, EU had no trade creation with negligible trade diversion effect of – US$0.2 million post EPA. There was a total potential tariff revenue loss of US$366.4 million and US$951.8 million for ECOWAS and EU blocs respectively, post EPAs. However, there was a total potential welfare gain of US$27.6 million for ECOWAS bloc and US$243.5 million for EU bloc post EPA. Therefore, the study points out that the on-going EPAs negotiations between ECOWAS and EU need not to be hurriedly signed by ECOWAS bloc. There is need to critically evaluate this treaty by ECOWAS policy makers before it would be concluded and implemented.