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Trade and Welfare Impacts of the Frozen Orange Juice Tariff Rate Quota of South Africa

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

Abstract

The article analyzes the trade and welfare impacts of the EU’s liberalization of frozen orange juice tariff rate quota (TRQ) exports from South Africa to the EU implemented under the Trade, Development and Cooperation Agreement (TDCA). Based on an approach that employs a fill parameter to extrapolate unfilled to filled TRQs in the Global Trade Analysis Project (GTAP) model, the study determines forgone quota rents not captured in the welfare measured in equivalent variation (EV). The results indicate that the forgone quota rent is US$293/ton and US$333/ton at TDCA full implementation and at the end of the TDCA, respectively.

Suggested Citation

  • Chiedza L. Muchopa & Yonas T. Bahta & Abiodun A. Ogundeji, 2020. "Trade and Welfare Impacts of the Frozen Orange Juice Tariff Rate Quota of South Africa," The International Trade Journal, Taylor & Francis Journals, vol. 34(2), pages 222-246, March.
    • Handle: RePEc:taf:uitjxx:v:34:y:2020:i:2:p:222-246
    DOI: 10.1080/08853908.2020.1715311
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