Andriamananjara, SoamielyBrenton, Paulvon Uexkull, Jan ErikWalkenhorst, Peter2012-03-192012-03-192009-04-01https://hdl.handle.net/10986/4113This study discusses potential economic implications for Nigeria of an Economic Partnership Agreement with the European Union. It uses the World Bank s Tariff Reform Impact Simulation Tool to assess the effects of preferential tariff liberalization with respect to the European Union. The results suggest that the impact of an Economic Partnership Agreement on total imports into Nigeria will be slight. This is in part because the Agreement will likely allow the most protected sectors to be excluded from liberalization, and also because where substantial tariffs are involved much of the increase in imports from the European Union will occur at the expense of other suppliers of imports. It is this trade diversion, arising from the discriminatory nature of the EPA, which generates a negative welfare impact of the tariff reforms. One way for Nigeria to limit these losses is to pursue non-preferential trade liberalization before implementing an EPA. The paper looks at the large number of import bans in Nigeria and argues that the positive impact on welfare of removing these import bans is likely to be substantial. Their removal would undermine a major reason for cross border smuggling and pave the way for a return to normal regional trade flows. The paper shows how an Economic Partnership Agreement presents an opportunity for accelerating the reforms that are needed to support a strategy to increase regional and global trade integration. Such an agreement is more likely to have positive and significant impacts when integrated into a comprehensive strategy toward competitiveness and alleviation of the supply constraints that have stifled the impact of previous trade agreements. Key issues that should be addressed include liberalization and regulatory strengthening of services sectors to ensure that all firms in Nigeria have access to efficiently produced backbone services and initiatives to address the country s poor trade logistics performance.CC BY 3.0 IGOACCESS TO IMPORTSACCOUNTINGACTUAL VALUEAD VALOREMAGRICULTURAL PRODUCTSAPPARELAPPAREL EXPORTSAPPAREL TRADEAPPLIED TARIFFARBITRAGEASYMMETRIC INFORMATIONAVERAGE TARIFFBANK GUARANTEESBANK POLICYBILATERAL TRADEBUSINESS ENVIRONMENTCAPACITY BUILDINGCARRIERSCOLLECTED TARIFFCOMPETITIVENESSCONSUMER SURPLUSCUSTOMSCUSTOMS ADMINISTRATIONCUSTOMS UNIONDEFICITSDEMAND ELASTICITIESDEMAND ELASTICITYDEVELOPED COUNTRIESDEVELOPING COUNTRIESDOMESTIC MARKETDOMESTIC PRICESDUTY DRAWBACKECONOMIC DEVELOPMENTECONOMIC GROWTHEQUILIBRIUMEQUIPMENTEUROPEAN UNIONEXPORT BIASEXPORT COMMODITIESEXPORT DIVERSIFICATIONEXPORT GOODSEXPORT GROWTHEXPORT INCENTIVEEXPORT MARKETSEXPORT PERFORMANCEEXPORT PROMOTIONEXPORT PROMOTION EFFORTSEXPORT PROSPECTSEXPORT SECTORSEXPORT SUBSIDIESEXPORT SUPPLYEXPORT VALUEEXPORTEREXPORTERSEXPORTSEXTERNAL PROTECTIONEXTERNAL TARIFFFINAL GOODSFISCAL REFORMSFIXED INVESTMENTSFOREIGN DIRECT INVESTMENTFOREIGN INVESTORSFOREIGN SOURCESFRAUDFREE ACCESSFREE ENTRYFREE TRADEFREE TRADE AGREEMENTSFREE TRADE AREASFREIGHT FORWARDERSGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELGENERALIZED SYSTEM OF PREFERENCESGLOBAL ECONOMYGLOBAL MARKETGLOBAL MARKETSGLOBAL TRADEGOVERNMENT REVENUEGROWTH RATEGROWTH RATESHIGH TARIFF PRODUCTSHIGH TARIFFSIMPORTIMPORT BANSIMPORT CONTROLSIMPORT DEMANDIMPORT GROWTHIMPORT LIBERALIZATIONIMPORT PRICEIMPORT PRICESIMPORT PROHIBITIONIMPORT REGIMEIMPORT SHAREIMPORT TARIFFSIMPORT VALUEIMPORT VALUESINSTRUMENTINTERNATIONAL BANKINTERNATIONAL COMMUNITYINTERNATIONAL MARKETINTERNATIONAL MARKETSINTERNATIONAL TRADEISSUANCELIBERALIZATION OF TRADELOCAL CONTENTLONG-TERM INVESTORSLOW-INCOME COUNTRIESMARKET ACCESSMARKET FAILURESMARKET SHAREMARKET SHARESMETAL PRODUCTSMULTILATERAL TRADEMULTILATERAL TRADE AGREEMENTSNON-TARIFF BARRIERSOIL EXPORTSOPEN REGIONALISMPER CAPITA INCOMEPOLICY CREDIBILITYPOLICY MAKERSPOLICY RESEARCHPREFERENTIAL ACCESSPREFERENTIAL AGREEMENTPREFERENTIAL BASISPREFERENTIAL MARKET ACCESSPREFERENTIAL RATESPREFERENTIAL SCHEMEPREFERENTIAL TARIFFPREFERENTIAL TARIFF REDUCTIONPREFERENTIAL TRADEPREFERENTIAL TRADE LIBERALIZATIONPREFERENTIAL TREATMENTPRICE INDEXPROTECTION DATAPROTECTIONISTRAPID GROWTHRECIPROCAL TARIFF REDUCTIONREGIONAL GROUPINGSREGIONAL INTEGRATIONREGIONAL TRADEREGIONAL TRADE INTEGRATIONREGULATORY FRAMEWORKREGULATORY REFORMRELATIVE PRICERELATIVE PRICESRESTRICTIVE RULES OF ORIGINRETURNRULES OF ORIGINSECTOR REFORMSSOURCINGSUPPLY CONSTRAINTSSUPPLY RESPONSETARIFF BARRIERSTARIFF DATATARIFF EXEMPTIONSTARIFF INCREASETARIFF INCREASESTARIFF LINETARIFF LINESTARIFF PREFERENCESTARIFF PROTECTIONTARIFF RATETARIFF RATESTARIFF REDUCTIONSTARIFF REFORMTARIFF REVENUETARIFF REVENUESTARIFF SCHEDULETARIFF STRUCTURETARIFFS ON IMPORTSTAXTAX BASETAX POLICIESTAX REVENUETELECOMMUNICATIONSTOTAL EXPORTSTOTAL IMPORTTOTAL IMPORTSTRADE AGREEMENTSTRADE BARRIERSTRADE CREATIONTRADE DIVERSIONTRADE FACILITATIONTRADE FLOWSTRADE IN SERVICESTRADE INTEGRATIONTRADE LOGISTICSTRADE POLICIESTRADE POLICYTRADE POLICY ISSUESTRADE POLICY REFORMTRADE PREFERENCESTRADE REFORMTRADE REGIMETRADE RESTRICTIONSTRADE RESTRICTIVENESSTRADE SHARETRADE TRANSACTIONSTRADE VALUETRADINGTRADING PARTNERTRADING PARTNERSTRANSACTIONS COSTSTRANSPORT COSTSUNCERTAINTYVALUE % OF IMPORTSVALUE OF IMPORTSWARRANTSWELFARE LOSSWELFARE LOSSESWORLD DEVELOPMENT INDICATORSZERO TARIFFSWorld Bank10.1596/1813-9450-4920