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Agricultural trade policy reform in South Africa

Author

Listed:
  • Chitiga, Margaret
  • Kandiero, Tonia
  • Ngwenya, P.

Abstract

This paper empirically investigates the impact of agricultural trade reform in South Africa. Using UNCTAD’s Agricultural Trade Policy Simulation Model (ATPSM), the study investigates two specific scenarios that capture the magnitude of (i) the economic impact of global agricultural trade reform in South Africa and (ii) the economic impact if the reform in South Africa is coupled with agricultural reforms in the European Union (EU). Trade reform focuses on substantial tariff reduction; although in the case of the EU, scenarios also include reduction in domestic support and export subsidies. The results show that a unilateral tariff reduction in a selected number of agricultural products amounts to welfare gains of US$21 million. These gains are three times higher when accompanied by extensive reforms in the EU.

Suggested Citation

  • Chitiga, Margaret & Kandiero, Tonia & Ngwenya, P., 2008. "Agricultural trade policy reform in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 0(Issue 1), pages 1-26, March.
  • Handle: RePEc:ags:agreko:5967
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    File URL: http://ageconsearch.umn.edu/record/5967/files/47010076.pdf
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    References listed on IDEAS

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    1. Scott McDonald & Cecilia Punt, 2004. "Trade Liberalisation, Efficiency and South Africa's Sugar Industry," Working Papers 2004012, The University of Sheffield, Department of Economics, revised Aug 2004.
    2. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Tariff Peaks in the Quad and Least Developed Country Exports," CEPR Discussion Papers 2747, C.E.P.R. Discussion Papers.
    3. Peters, Ralf & Vanzetti, David, 2005. "Shifting Sands: Searching For A Compromise In The Wto Negotiations On Agriculture," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137943, Australian Agricultural and Resource Economics Society.
    4. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank.
    5. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
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    Cited by:

    1. Kwamina E. Banson & Nam C. Nguyen & Ockie J. H. Bosch, 2016. "Systemic Management to Address the Challenges Facing the Performance of Agriculture in Africa: Case Study in Ghana," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(4), pages 544-574, July.

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