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Tariff rate quota impacts on export market access of South African fruit products into the EU market

Author

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  • Muchopa, Chiedza L.
  • Bahta, Yonas T.
  • Ogundeji, Abiodun A.

Abstract

In this paper tariff rate quota (TRQ) fruit products are analysed as representative sectors in a Global Trade Analysis Project (GTAP) Computable General Equilibrium (CGE) static model to establish impacts on trade and welfare. Simulations are carried out to remove EU tariffs on fruit products, non-tariff measures (NTMs) and other influential factors accounting for the unfilled portion of the TRQs. A large proportion of quota under-fill is explained by the presence of NTMs which include aspects of the TRQ administration methods on the exporter side. The results of the simulations show that the increase in exports is greater with the removal of NTMs than with tariff removal. The findings of the equivalent variation (EV) measure of welfare show a welfare loss of −US$14 040 in South Africa when quota fill is simulated without the removal of NTMs. Partial trade liberalisation characterised by the removal of only tariffs, exhibits smaller welfare gains (US$31 943) compared with the combined liberalisation of tariffs and NTMs which improves welfare by US$221 834. The study concludes that the trade liberalisation process of fruit products TRQs should simultaneously implement full tariff liberalisation with TRQ expansion and the reduction of NTMs.

Suggested Citation

  • Muchopa, Chiedza L. & Bahta, Yonas T. & Ogundeji, Abiodun A., 2019. "Tariff rate quota impacts on export market access of South African fruit products into the EU market," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 58(4), April.
    • Handle: RePEc:ags:agreko:347881
    DOI: 10.22004/ag.econ.347881
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    References listed on IDEAS

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