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This paper applies a partial equilibrium model to analyze the fiscal revenue implications of the prospective economic partnership agreement between the Economic Community of West African States (ECOWAS) and the European Union. The authors find that, under standard import price and substitution elasticity assumptions, eliminating tariffs on all imports from the European Union would increase ECOWAS' imports from the European Union by 10.5-11.5 percent for selected ECOWAS countries, namely Cape Verde, Ghana, Nigeria, and Senegal. This increase in imports would be accompanied by a 2.4-5.6 percent decrease in total government revenues, owing mainly to lower fiscal revenues. Tariff revenue losses should represent 1 percent of GDP in Nigeria, 1.7 percent in Ghana, 2 percent in Senegal, and 3.6 percent in Cape Verde. However, the revenue losses may be manageable because of several mitigating factors, in particular the likelihood of product exclusions, the length of the agreement's implementation period, and the scope for reform of exemption regimes. The large country-by-country differences in fiscal revenue loss suggest that domestic tax reforms and fiscal transfers within ECOWAS could be important complements to the agreement's implementation.

Applied Tariff --- Debt Markets --- Economic Theory and Research --- Exports --- Finance and Financial Sector Development --- Free Trade --- Gross Domestic Product --- Import Tariff --- International Economics & Trade --- International Trade and Trade Rules --- Macroeconomics and Economic Growth --- Public Sector Development --- Regional Trade --- Tariff Rates --- Tariff revenue --- Trade Agreement --- Trade Liberalization --- Trade Policy

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Despite strong protectionist sentiments, trade regimes have remained open in Central European countries invited to negotiate their accession to the European Union. Regional disciplines (the EU factor), combined with the legacy of low tariffs under GATT commitments, appear to have offset domestic protectionist impulses. Kaminski examines the development of foreign trade institutions and policies in Central European countries invited to negotiate their accession to the European Union. With the dismantling of state trading, conditions of market access have been dramatically liberalized. However, except for Estonia and, to a lesser extent, the Czech Republic, most Central European countries have followed a policy of bilateral rather than multilateral trade liberalization. The fall in tariff rates on preferential imports has prompted a search for nontariff barriers, but these countries' trade regimes have remained open - which is surprising, considering the strong protectionist sentiments in economic administration. Regional disciplines (the EU factor), combined with the legacy of low tariffs under GATT commitments, appear to have been responsible for this openness. Foreign trade policy has been shaped by tensions between domestic protectionist impulses and pressures from the European Union (and other World Trade Organization members) to improve conditions of market access. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to examine trade and integration issues. The author may be contacted at bkaminski@worldbank.org.

Applied Tariff --- Autonomy --- Border Protection --- Currencies and Exchange Rates --- Debt Markets --- Domestic Producers --- Economic Theory and Research --- Emerging Markets --- Exchange Rates --- Finance and Financial Sector Development --- Foreign Trade --- Foreign Trade Policy --- Free Trade --- International Economics & Trade --- International Trade --- International Trade Policies --- Law and Development --- Macroeconomics and Economic Growth --- Market Access --- Private Sector Development --- Public Sector Development --- Regional Integration --- Tariff --- Tariff Barriers --- Tariff Rates --- Tariffs --- Trade --- Trade and Regional Integration --- Trade Law --- Trade Liberalization --- Trade Policies --- Trade Policy --- Trade Regimes