EPA, Agriculture and Development - The Case of CARIFORUM

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The CARIFORUM and the EU agreed in December 2007 on an EPA which replaced the preferential trade treatment granted by the EU under the Lomé convention and Cotonou agreement. In the EPA the EU agreed to open up their markets to 100% for goods coming from the CARIFORUM (rice and sugar have shorter transition periods) and the CARIFORUM has 25 years to liberalize 86,9% of imports coming from the EU. The EPA also contains a clause in which the EU has offered to assist the CARIFORUM in their tax reform processes as well as to diversify their industries. My purpose of this thesis is to present the EPA between the EU and the CARIFORUM, to evaluate whether the EPA will be trade creating or trade diverting and finally to study the impact of the EPA on the sugar and banana sectors. My conclusions are that the EPA might be trade creating for the CARIFORUM and that the sugar and banana sectors will meet difficulties but will still be profitable under the new trade agreement. There is however need for the CARIFORUM to...