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The European Union (EU) has more preferential trading arrangements than anyother trading entity. For a quarter of a century African, Caribbean and Pacific(ACP) countries have benefited from unreciprocated preferential access to the EUmarket under a succession of Lom Arrangements. Sunset provisions now apply tothese concessions and after 2007 unreciprocated preferences will end. The EU isproposing that a network of regional Economic Partnership Agreements (REPAs)replace Lom. This is a new form of regional trading arrangement for both the EUand ACP countries. In this paper we develop an analytical framework for evaluat-ing the impact effects of a REPA and apply this to estimate costs and benefits in theCARICOM region. Our results suggest that a REPA would be inferior on welfaregrounds to either extended reciprocity with the EU and US, or broader multilateralliberalisation.JEL classification: F15