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Trade Liberalisation between Australia, India and South Africa: Prospects for a Dynamic Growth Triangle

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  • Mahinda Siriwardana

Abstract

Australia's trade with India and South Africa has been growing steadily in recent times. These countries have become more liberalised in trade during last five years and they also play a significant role in the Indian Ocean Rim-Association for Regional Cooperation (IOR-ARC). It has been proposed that Australia should take the initiative in forming effective cooperation with India and South Africa for complete free trade. This paper examines the trade links between these three countries and then evaluates quantitatively the likely effects of the establishment of a bilateral free trade agreement (FTA) between them. We use the GTAP (Global Trade Analysis Project) model to quantify the effects of the FTA. The results provide some indication of the magnitude of the welfare gains involved under free trade and shed some light on prospects for trade liberalisation in IOR countries.

Suggested Citation

  • Mahinda Siriwardana, 2005. "Trade Liberalisation between Australia, India and South Africa: Prospects for a Dynamic Growth Triangle," The IUP Journal of Applied Economics, IUP Publications, vol. 0(4), pages 20-35, July.
    • Handle: RePEc:icf:icfjae:v:04:y:2005:i:4:p:20-35
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    Cited by:

    1. Mahinda Siriwardana & Jinmei Yang, 2006. "Economic Effects of the Proposed Australia-china Free Trade Agreement," EcoMod2006 272100084, EcoMod.
    2. Mahinda Siriwardana & Jinmei Yang, 2007. "Effects of Proposed Free Trade Agreement between India and Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(1), pages 21-38, January.

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