SACU tariff policies: Where should they go from here?
AbstractThis paper characterizes the current SACU tariff structure, considers its rationale, proposes and evaluates some alternatives and offers some suggestions for reforming the SACU revenue sharing formula and regional trade strategy. While considerable progress was made until recently in liberalizing and simplifying SACU’s tariff structure, over the past few years such movement appears to have halted. This is unfortunate because, as the paper demonstrates, the tariff structure remains excessively complex, and opaque, continues to taxes exports and provides sectors with very disparate amounts of protection. The differentiation appears mainly to be the result of historical accident and does not appear to be justifiable as efficient job preservation, equitable income distribution or on infant industry grounds. Several alternative tariff structures that use just one or two tariff bands are explored. We demonstrate that it is possible simultaneously to provide benefits to consumers, limit employment dislocation, confer a reasonable degree of effective protection, particularly on finished goods, reduce export taxes, improve transparency and provide a norm against which industrial policy priorities can be set. A major reform of SACU tariffs would also provide the opportunity to renegotiate the SACU revenue-sharing formula, more clearly and rationally separating its aid and tariff-revenue sharing components. The paper also advocates that SACU place primary reliance on free trade agreements rather than new customs unions in its dealing with other trading partners.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32865.
Date of creation: May 2008
Date of revision:
Trade policy; South African Customs Union; Liberalisation;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Torfinn Harding & Jørn Rattsø, 2005.
"The Barrier Model of Productivity Growth: South Africa,"
Working Paper Series
4805, Department of Economics, Norwegian University of Science and Technology.
- Torfinn Harding & Jørn Rattsø, 2005. "The barrier model of productivity growth: South Africa," Discussion Papers 425, Research Department of Statistics Norway.
- Johannes Fedderke & Chandana Kularatne & Martine Mariotti, 2005.
"Mark-up Pricing in South African Industry,"
01, Economic Research Southern Africa.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2004.
"Import Demand Elasticities and Trade Distortions,"
CEPR Discussion Papers
4669, C.E.P.R. Discussion Papers.
- Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009.
"Estimating Trade Restrictiveness Indices,"
Royal Economic Society, vol. 119(534), pages 172-199, 01.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating Trade Restrictiveness Indices," CEPR Discussion Papers 5576, C.E.P.R. Discussion Papers.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
- Sebastian Edwards & Daniel Lederman, 1998. "The Political Economy of Unilateral Trade Liberalization: The Case of Chile," NBER Working Papers 6510, National Bureau of Economic Research, Inc.
- L Edwards, 2001. "Globalisation And The Skills Bias Of Occupational Employment In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 69(1), pages 40-71, 03.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.