The Economic Partnership Agreements: Rationale, Misperceptions and Non-trade Aspects

The European Union has a long history of partnership with the countries of the Africa, Caribbean and Pacific (ACP) grouping, including trade relations stimulated by highly preferential market access to the EU under the Cotonou Agreement or the Everything but Arms (EBA) initiative. Over 95% of ACP exports entered the EU duty-free in 2006. However, despite this preferential treatment, ACP trade with the EU has not diversified and has steadily declined over the last 30 years. Clearly, preferential market access alone has not been adequate to stimulate export-led growth in the ACP. At the same time, non-ACP developing countries have not been granted similar treatment. This is incompatible with the principle of most favoured nation (MFN) treatment set out in Article I of the GATT and with the ‘Enabling Clause’ covering special treatment of developing countries. The EU was therefore forced to seek a series of waivers from other World Trade Organisation members to enable its special trade regime for the ACP to continue. The latest of these waivers was only agreed in Doha in