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This report provides an initial analysis of the potential effects of the EU’s offer to import duty and quota free (DFQF) all goods from EPA members. Most ACP exports (97.6 percent in 2006) already enter the European Union (EU) under DFQF terms. Hence, the new initiative will be restricted to the small proportion of goods that are mainly agricultural products. The report identifies:

-The current ACP exports that will be affected directly by DFQF and the potential scale of the revenue transfer away from the Commission;

-The extent to which the ACP’s position in the EU market will be enhanced vis-à-vis their main competitors;

-Potential new exports resulting from trade being re-directed towards the EU.

-The potential to increase supply of products identified.

The report pulls all the threads together and also considers the implications for the ACP of a wider application of DFQF by other major importing countries.