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Bilateral Free Trade Agreements and Customs Unions: The Impact of the EU Republic of South Africa Free Trade Agreement on Botswana

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  • Walmsley, Terrie
  • Scott McDonald

Abstract

The EU has indicated that after 2008 its trade relationships with developing countries will be dominated by the development of preferential trade agreements. Although not a consequence of the Cotonou Agreement, the free trade agreement between the EU and the Republic of South Africa (EU RSA FTA) is clearly one of the first fruits of this approach to trade relationships. However, there is no evidence that the design of the EU RSA FTA incorporated a comprehensive general equilibrium evaluation of the agreement for either the signatories or the other southern African nations. The analyses reported here indicate that while the EU RSA FTA may substantially benefit the signatories, there are appreciable negative impacts for other states, especially the RSA’s immediate neighbours. Moreover, the reluctance of the EU to fully liberalise trade in food and agriculture commodities results in a major reduction in the benefits for the RSA without ameliorating substantively the adverse implications for other nations.

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Bibliographic Info

Paper provided by Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University in its series GTAP Working Papers with number 1644.

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Date of creation: 2003
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Handle: RePEc:gta:workpp:1644

Note: GTAP Working Paper No. 29
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Cited by:
  1. Jeffrey D. Lewis & Sherman Robinson & Karen Thierfelder, 2003. "Free Trade Agreements and the SADC Economies," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 12(2), pages 156-206, June.
  2. Ngeleza, Guyslain K. & Muhammad, Andrew, 2009. "Preferential trade agreements between the monetary community of Central Africa and the European Union: Stumbling or building blocks? A general equilibrium approach," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 859, International Food Policy Research Institute (IFPRI).
  3. Francois, Joseph F. & McQueen, Matthew & Wignaraja, Ganeshan, 2005. "European Union-developing country FTAs: overview and analysis," World Development, Elsevier, Elsevier, vol. 33(10), pages 1545-1565, October.
  4. Scott McDonald & Terrie Walmsley, 2004. "Preferential Trade Agreements and the Optimal Liberalisation of Agricultural Trade," Working Papers, The University of Sheffield, Department of Economics 2004010, The University of Sheffield, Department of Economics, revised Aug 2004.

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