Paper short abstract:

There is inequity in the Africa-European Union relations.This inequity in the benefits accrueable to the partners is predicated on the differences in production structures and some protectionist measures in the EU.These have affected Africa's capacity to benefit from this Partnership.

Paper long abstract:

Abstract.

The Cotonou Economic Partnership Agreement (EPA) is the latest in a long history of Multilateral Dependency between Africa and the European Union (EU) that constitute a threat to poverty reduction efforts and the development prospects of some of the world's poorest countries. There is little evidence to suggest (even from the implementation of the Lome preferences) that trade liberalization will transform the economies of Africa into a major leader in the global supply chain for manufactured goods and services. This paper analyzes the mechanism through which this Multilateral Dependency is affecting Africa and provides information on international and intra-African responses to the crisis. A qualitative mechanism of data collection and analysis has been adopted. The paper contends that the wider EU political economy is exercising a modulating and a restraining influence on the capacity of trade to act as an "engine of growth" in Africa. Hence, there is an urgent need for the state in Africa to articulate macroeconomic policies that will build its capacity to key into the global value chain.

Keywords: Economic Partnership Agreement, Trade, Regional Integration, General Agreement on Trade and Tariff, Multilateral Dependency.