The Impact of the EPA on West Africa: The Mediating Role of an Intra-African Trade Policy for Africa’s Sustainable Growth in the Global Value Chain

Abstract

Purpose: This chapter examines how the West African subregion can generate and sustain the desired value of its global supply chains from accumulated knowledge resources gained from past international trade relations with the rest of the world. Methodology: The Economic Partnership Agreement (EPA) between the European Union (EU) and Africa Caribbean Pacific regions is explored as a case study. As part of its external policies, the EU is participating in various trade agreements such as the EPA, striving towards mutual economic development. We analyse comprehensive data from the Eurostat of the European Commission and the data centre of the United Nation Conference on Trade and Development (UNCTADSTAT). Key findings: Our analysis of data reveals severe uneven trade outcomes between West Africa and the EU. Drawing on organizational learning theory, we explain how participating West African countries have hardly learned from experiences of prior trade agreements and particularly the current EPA. This has hindered export trade and industrialization and impeded sustainable growth of participating African countries in the global value chain over the years. Implications: The study discusses critical policy implications for the African Continental Free Trade Agreement (AfCFTA), which will hone Africa’s sustainable growth in the global value chain and future trade relations with the rest of the world. KeywordsWest AfricaEconomic Partnership AgreementsIntra-African TradeSustainabilityGlobal Value ChainAfrica