The Economic Community of West African States : Fiscal Revenue Implications of the Prospective Economic Partnership Agreement with the European Union

Zouhon-Bi, Simplice G. ; Nielsen, Lynge

World Bank, Washington, DC

关键词: AD VALOREM;    AGREEMENT ON TRADE;    AGREEMENT ON TRADE-RELATED ASPECTS;    AGRICULTURAL PRODUCTS;    AGRICULTURE;   

DOI  :  10.1596/1813-9450-4266
RP-ID  :  WPS4266

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper applies a partial equilibriummodel to analyze the fiscal revenue implications of theprospective economic partnership agreement between theEconomic Community of West African States (ECOWAS) and theEuropean Union. The authors find that, under standard importprice and substitution elasticity assumptions, eliminatingtariffs on all imports from the European Union wouldincrease ECOWAS' imports from the European Union by10.5-11.5 percent for selected ECOWAS countries, namely CapeVerde, Ghana, Nigeria, and Senegal. This increase in importswould be accompanied by a 2.4-5.6 percent decrease in totalgovernment revenues, owing mainly to lower fiscal revenues.Tariff revenue losses should represent 1 percent of GDP inNigeria, 1.7 percent in Ghana, 2 percent in Senegal, and 3.6percent in Cape Verde. However, the revenue losses may bemanageable because of several mitigating factors, inparticular the likelihood of product exclusions, the lengthof the agreement's implementation period, and the scopefor reform of exemption regimes. The largecountry-by-country differences in fiscal revenue losssuggest that domestic tax reforms and fiscal transferswithin ECOWAS could be important complements to theagreement's implementation.