Impact Study of the Interim Economic Partnership Agreement in Eastern and Southern Africa

The Project at A Glance

Madagascar, Mauritius, Seychelles and Zimbabwe signed an Interim Economic Partnership Agreement (iEPA) with the EU on 29 August 2009 in the Eastern and Southern African (ESA) countries configuration. The Agreement, provisionally applied as from 14 May 2012, aims to boost trade among the signatory parties.
International Economics worked with Agriconsulting Europe S.A. to conduct s study on the impact of the iEPA on the ESA signatory countries and to propose modalities for the establishment of an EPA fund for financing the implementation of the iEPA.

What We Found

The study aimed to contribute to the economic development and regional integration of the four beneficiary countries through improved trade relationships between them and the EU. International Economics conducted a comprehensive impact assessment of the iEPA Agreement on trade with the EU and an assessment of the adjustment costs and development needs arising for the four states from implementing the iEPA. The team also developed strategies and action plans for implementation of the iEPA and elaborated proposals of the modalities for the establishment of an EPA fund to support the countries in implementing the agreement.

Our Strategy and Impact

The team at International Economics used partial equilibrium modelling tools to examine trade flows in addition to a computable general equilibrium model for identifying economy-wide effects of the iEPA and also undertook an assessment of the impact of iEPA rules of origin on the composition and value of iEPA ESA signatory countries’ exports to the EU. An analysis of the experiences from other regional “Funds” set up by Donors (EC included) to enable parties to adjust to trade agreements and implement their regional economic cooperation and regional integration commitments was also conducted to formulate a proposal for the establishment of an EPA fund, its structure, modalities and management structure.

Our Core Solutions

Governments, international donors, and the private sector face many important questions on the expected outputs and impact before, during and after the implementation of their projects. This is where International Economics Consulting’s team of experts, using innovative methodologies to collect and analyse data, can assist you in tracking the economic, social, and environmental aspects of your project.

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Project Areas