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EU-RSA Free trade agreement -- Partial liberalization of the Dairy and sugar sectors in the EU PowerPoint Presentation
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EU-RSA Free trade agreement -- Partial liberalization of the Dairy and sugar sectors in the EU - PowerPoint PPT Presentation


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EU-RSA Free trade agreement -- Partial liberalization of the Dairy and sugar sectors in the EU. Motivation: Exploration of importance of sensitive sectors Experiment: 50% reduction unliberalized sensitive sectors: milk and sugar. Implementation:

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eu rsa free trade agreement partial liberalization of the dairy and sugar sectors in the eu
EU-RSA Free trade agreement -- Partial liberalization of the Dairy and sugar sectors in the EU
  • Motivation: Exploration of importance of sensitive sectors
  • Experiment: 50% reduction unliberalized sensitive sectors: milk and sugar.
  • Implementation:
    • modification to Base scenario by a change in cmfstart file to set definition
background information
Background Information
  • EU Tariff rates reduction
    • Milk: 87.7%  43.8%
    • Sugar: 76.4%  38.2%
  • Importance of trading partners in both sectors (milk, sugar)
results
Results
  • Welfare gains in EU and RSA:
results1
Results
  • Sources of Welfare gain in EU and RSA:
results2
Results
  • Increase in South African exports to the EU (qxs)
results3
Results
  • Change in EU and RSA’s Sugar and Milk Production (qo)
conclusion
Conclusion
  • Milk and sugar sectors in the EU would face a small loss for the benefit of all
  • Partial liberalization of milk and sugar in the EU-RSA FTA is a Win-Win situation
  • Political economics can explain the protection of these sectors to the detriment of the welfare as a whole.