Impact of Trade Liberalization on Ethiopian Agriculture Vs Industry

Impact of Trade Liberalization on Ethiopian Agriculture Vs Industry

The case of Economic Partnership Agreement between European Union and Africa-Pacific-Caribbean countries

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EPA between EU and ACP. Ethiopia is taken as a sample study. Two major economic sectors - agriculture and industry are selected. SAM of 2005/06 data of EDRI is used. Recursive CGE model is used. The paper considers two scenarios on the two sectors -complete and gradual removal of import tariff. Applying both scenarios on industry sector resulted in export of agriculture to reduce while industry with strategic products to increase. Strategic products import for gradual reduction on leather & metal decreases while clothing remains constant; tobacco with textile increases. Industrial with strateg...