The deceptive promise of free trade to the developing countries: an assessment of the implications of Economic Partnership Agreement (EPA) to trade in the East African Community (EAC)
Graduate School of International Studies Ajou University
Description
학위논문(석사)--Graduate School of International Studies Ajou University :국제개발협력학과,2019. 8
Alternative Abstract
In line with the global free trade agenda, the EU and EAC have been negotiating the Economic Partnership Agreement (EPA) which if ratified by all the EAC member countries will enable more EU exports to further gain market of the EAC (about 90% of EU exports).
The research analyzed the would-be ramifications of the EPA on the EAC trade and trading capacity of the EAC. EU and EAC are already involved in trade and cooperation. Therefore, assessing the likely implications of the EPA based the on the prevailing circumstances was possible by tracking a possible trajectory of the EPA. The research’s most notable finding is that; EPA will increase EU exports in the EAC and this will reduce intra-EAC trade, create more dependence on EU exports since the EU is among the top players in the global trade with a share of 34% of world trade in 2018, as well as among top exporters to the EAC.
Therefore, EPA is a threat to EAC intra-trade and indigenous technological development since most EU products are high tech products and given the fact that all the EAC member countries have trade deficits in global trade and huge debt burden, the EPA will make these countries more indebted since increasing EU imports will expand the trade deficit that is already in existence.
To this, the research recommends; EAC member countries need to strengthen intra-EAC trade, build their exporting capacity so as to be able to benefit from the opportunities of global free trade rather than signing agreements to increase the importation of products from developed countries that are major world players in global trade.
Major Words: Economic Partnership Agreement (EPA), global free trade and dependency
