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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.

Suggested Citation

  • Walmsley, Terrie & Scott McDonald, 2003. "Bilateral Free Trade Agreements and Customs Unions: The Impact of the EU Republic of South Africa Free Trade Agreement on Botswana," GTAP Working Papers 1644, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  • 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), vol. 12(2), pages 156-206, June.
    2. Francois, Joseph F. & McQueen, Matthew & Wignaraja, Ganeshan, 2005. "European Union-developing country FTAs: overview and analysis," World Development, Elsevier, vol. 33(10), pages 1545-1565, October.
    3. L. Walters & H.R. Bohlmann & M.W. Clance, 2016. "The Impact of the COMESA-EAC-SADC Tripartite Free Trade Agreement on the South African Economy," Working Papers 635, Economic Research Southern Africa.
    4. repec:wsi:serxxx:v:62:y:2017:i:03:n:s0217590818400027 is not listed on IDEAS
    5. Osman, Rehab Osman Mohamed, 2012. "The EU Economic Partnership Agreements with Southern Africa: a computable general equilibrium analysis," Economics PhD Theses 0412, Department of Economics, University of Sussex.
    6. Guyslain K. Ngeleza & Andrew Muhammad, 2015. "Preferential Trade Agreements Between the Monetary Community of Central Africa and the European Union: Stumbling or Building Blocks? A General Equilibrium Approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(2), pages 251-272, March.
    7. Scott McDonald & Terrie Walmsley, 2004. "Preferential Trade Agreements and the Optimal Liberalisation of Agricultural Trade," Working Papers 2004010, The University of Sheffield, Department of Economics, revised Aug 2004.

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