Potential Market Structure, Competition, Liberalization and Trade in Services after Economic Partnership Agreements (EPAs): The Case of Ethiopia
No Thumbnail Available
Date
2010-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The conception of market led international trade as a means to mutual benefits for all
engaged bodies is a truth rooted in the invisible hand notion of Adam Smith (1776). Carrying
on this 18th century factual understanding of free trade and aiming at realizing the full
benefits of international trade, regional and international agreements and negotiations are
underway to reduce and eventually eliminate restrictions on free functioning of markets.
Among these, Economic Partnership Agreements (EPAs) being negotiated between EU and
ACP countries are comprehensive accords attempting to promote free workings of markets.
Beyond the common tariff and quota-free understanding of free trade, EPAs include
provisions on investment and trade in services with an ultimate aim of creating market-led
service industries. As an economy negotiating EPA with EU, potential outcomes of the
agreement on the Ethiopian service industries call for assessment. In this regard, this study
examines the potential post-EPA competition, trade and investment in three fundamental but
restricted service industries of the Ethiopian economy. Based on reviews of CARIFORUM
(sates that have completed EPA negotiations) experiences, EPA service provisions, the
service industry structures and regulatory framework of the industries in Ethiopia; findings of
the study reveal that, aligned with the objective of EPAs, the telecommunications, finance
and maritime transport industries of Ethiopia would move towards a competitive industry
structure, trade and liberalization for investments in the post-EPA future.
Description
Keywords
Potential Market Structure