The EU-ACP (African, Caribbean and Pacific) Economic Partnership Agreements and their Implications for Ethiopia

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


The Cotonou Agreement foresees setting up free trade, Economic Partnership Agreements (EPAs), between the EU and regional ACP configurations. Consequently, the preferential system for ACP export products entering the EU market had to be replaced, beginning 1 January 2008, by a trade agreement based on reciprocity in a manner that is WTO compatible. Owing to the fact that most countries didn’t sign this agreement on the basis of the time table, it was not possible to put this agreement in to force and hence what is called the Interim Economic Partnership Agreement has been initialed and signed by various ACP countries to avoid trade disruption that may result from the expiry of the waiver from WTO in December 31, 2007. Ethiopia didn’t sign any of these agreements until today and have been negotiating to be party to it. But there have been divergence in wide range of issues, most of which are the major reasons for the country to involve in this negotiation, between the EU and Ethiopia. These specially include: the MFN provision, development cooperation, scope of liberalization, use of quantitative restriction, export tax, customs valuation agreement, loss of government revenue, competitiveness of Ethiopian products following liberalization, substantial adjustment costs the country will face, issues of regional integration and WTO+ issues in the negotiation. Understandably, all of these issues have their own very significant bearing on the market as well as overall economic activity of the country and hence it is quite essential to have clear and sound agreement that protects the best interest of the country on these issues.



Impacts of States’ Revenue Capacity, Ethiopian Decentralized Fiscal System