Europe, South Africa, and Southern Africa: Regional Integration in a Global Context
Southern Africa is strongly tied to the European economy, but their bilateral trade occurs in the context of a global economy. Any change with respect to one trading partner will have repercussions for other partners. This study aims to inform trade negotiations between South Africa and the European Community by simulating the impacts of several possible trade agreements on themselves and on other trading partners. Excluding agriculture from any trade agreement, a sure EU aim, would be very costly to Africans. An agreement between Europe and South Africa would impose significant costs on the rest of southern Africa due to trade diversion unless the region undertakes its own liberalization.
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