AUTHORS:

Nguepnang Pad jip Gills Thierry

ABSTRACT:

The Trade and Development Partnership Agreement between the European Union and Cameroon (EU-CAM EPA) was initially signed on January15, 2009. Cameroon ratified the Agreement and notified the EU about his changes on July 25th. Finally, the Trade and Development Partnership Agreement came into force on August 4, 2014, after further ratification.

In addition, political, economic cooperation and cultural ties link the EU and Cameroon. The EU is Cameroon's main economic partner, accounting for more than 41 percent of its combined exports and imports. A CGE model was utilized to conduct the analysis of the economic impacts of the European Union – Cameroon Economic Partnership Agreement. To perform simulations, the Global Trade Analysis Project (GTAP) Model was used to estimate the impacts of the trade agreement between the EU and Cameroon. Moreover, four different scenarios were conducted to proceed the economic impacts of EU-CAM EPA.

The research findings revealed that Cameroon’s bilateral trade with the European Union might be affected positively provided that there is a consideration of shock given by Total Factor Productivity. If not the case, Cameroon might lose in terms of welfare due to the EU’s maintenance of low tariffs on imports from Cameroon. Moreover, it was observed that the two countries’ GDPs have a significant impact on bilateral trade. It is also assuming that Cameroon will even have some additional gain in the case of more openness, with consideration of Total Factor Productivity shock

KEYWORDS:

CGE model, Eu-CAM FTA, Economic partnership agreements (EPA)

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