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Agricultural trade policy reform in South Africa

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  • 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. 47(01), pages 1-26, March.
    • Handle: RePEc:ags:agreko:5967
    DOI: 10.22004/ag.econ.5967
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    References listed on IDEAS

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    1. Ralf Peters & David Vanzetti, 2004. "User Manual And Handbook On Agricultural Trade Policy Simulation Model (Atpsm)," UNCTAD Blue Series Papers 24, United Nations Conference on Trade and Development.
    2. Ralf Peters & David Vanzetti, 2004. "Shifting Sands: Searching For A Compromise In The Wto Negotiations On Agriculture," UNCTAD Blue Series Papers 23, United Nations Conference on Trade and Development.
    3. 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.
    4. 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.
    5. Olarreaga, Marcelo & Ng, Francis, 2001. "Tariff Peaks in the Quad and Least Developed Country Exports," CEPR Discussion Papers 2747, C.E.P.R. Discussion Papers.
    6. Pursell, Garry & Gupta, Anju, 1998. "Trade policies and incentives in Indian agriculture : methodology, background statistics, and protection and incentive indicators, 1965-95," Policy Research Working Paper Series 1953, The World Bank.
    7. Ngqangweni, Simphiwe & Kandiero, Tonia & Gebrehiwet, Yemane & Kirsten, Johann F., 2004. "The Uruguay Round Agreement On Agriculture: A Review Of Progress And Challenges In The Sadc Region," Working Papers 18082, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
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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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