If each partner`s input is given before making important decisions, many financial and business mistakes can be avoided. In addition, the stability of the Economic Partnership Agreement may be compromised if each partner does not rule on trade issues. The partnership will weaken a little each time management fails to agree on important issues that affect it. To clarify how the business works, you add instructions on how business decisions are made to the partnership agreement. Regular meetings will also help each partner stay on the same side and draw attention to recent events related to the economic partnership. While sufficient time is required to develop the partnership agreement, it is also easy to establish an economic partnership. The partnership agreement lists the role of each partner, how the operation is managed, meetings and decision-making. While there are some drawbacks in an economic partnership, the many advantages of this type of structure can outweigh most – if not all. Partners, for example, provide strengths, alternative feedback advice and shared responsibility that together can improve the company`s overall health and financial outlook. It is more of a free trade agreement (FTA), as it contains a strong development component, with clear links with development assistance for the adaptation and modernization of Cariforum economies. Partnerships can be established in different ways.
General partnerships are generally divided equally between management tasks, profits and losses. In other words, unless it is in the partnership agreement. Limited liability companies (LPPs) have restrictions on partner decision-making as well as a percentage of investments. Joint ventures have partners working on a project for a fixed period of time. The Cariforum-EU Economic Partnership Agreement (EPA) is a permanent instrument of the CARIFORUM-CE trade partnership. It replaces the commercial component of Lomé IV and its successor Cotonou (2000). The European Union`s (EU) Economic Partnership Agreements (EPAs) with regional blocs of African countries (and some African countries) aim to promote more than simply boosting trade between the EU and African countries. They aim to promote sustainable development and poverty reduction, including supporting regional integration processes in Africa, encouraging the gradual integration of African economies into global markets, and improving the ability of African countries to take advantage of trade opportunities for economic growth. With the internationalization of production processes, which account for 70% of world trade in intermediate goods or services, increased participation in regional and global value chains has become an essential part of African countries` transformation and sustainable development strategies.