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Beyond Tariffs: The Role of Non-Tariff Barriers in Dairy Trade in the East African Community Free Trade Area

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  • Ayele Gelan
  • Amos Omore

Abstract

type="main"> This study used a spatial equilibrium modelling approach to quantify the relative welfare impacts of eliminating tariffs and non-tariff barriers on trade in dairy products among East African Community (EAC) member countries. The results indicated that removing tariffs only would not produce any significant welfare improvements unless it was accompanied by trade-enhancing measures such as reductions in non-tariff barriers and transport costs. In the current modelling framework, net welfare gains were higher in relatively lower-income countries like Burundi than in higher-income countries like Kenya. This indicates that reductions in trade costs may reduce regional imbalances in the EAC.

Suggested Citation

  • Ayele Gelan & Amos Omore, 2014. "Beyond Tariffs: The Role of Non-Tariff Barriers in Dairy Trade in the East African Community Free Trade Area," Development Policy Review, Overseas Development Institute, vol. 32(5), pages 523-543, September.
  • Handle: RePEc:bla:devpol:v:32:y:2014:i:5:p:523-543
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    File URL: http://hdl.handle.net/10.1111/dpr.12071
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    References listed on IDEAS

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    1. Jean‐Paul Chavas & Thomas L. Cox & Edward Jesse, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics, International Association of Agricultural Economists, vol. 18(1), pages 1-19, January.
    2. Omamo, Steven Were & Diao, Xinshen & Wood, Stanley & Chamberlin, Jordan & You, Liangzhi & Benin, Samuel & Wood-Sichra, Ulrike & Tatwangire, Alex, 2006. "Strategic priorities for agricultural development in Eastern and Central Africa:," Research reports 150, International Food Policy Research Institute (IFPRI).
    3. Kaitibie, Simeon & Omore, Amos & Rich, Karl & Kristjanson, Patti, 2010. "Kenyan Dairy Policy Change: Influence Pathways and Economic Impacts," World Development, Elsevier, vol. 38(10), pages 1494-1505, October.
    4. Omoregie, Edamwen M. & Thomson, Kenneth J., 2001. "Measuring regional competitiveness in oilseeds production and processing in Nigeria: a spatial equilibrium modelling approach," Agricultural Economics, Blackwell, vol. 26(3), pages 281-294, December.
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    Cited by:

    1. Mahdi Ghodsi & Julia Grübler & Oliver Reiter & Robert Stehrer, 2017. "The Evolution of Non-Tariff Measures and their Diverse Effects on Trade," wiiw Research Reports 419, The Vienna Institute for International Economic Studies, wiiw.

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