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Humboldt-Universität zu Berlin - Lebenswissenschaftliche Fakultät - Quarterly Journal of International Agriculture

Quarterly Journal of International Agriculture No. 4/08


Impacts of the EU-SA TDCA’s reciprocal preferential tariff quotas on market access for cheese and wines

Madime Reuben Mokoena, André Jooste and Zerihun Gudeta Alemu
University of the Free State, Bloemfontein, South Africa


Abstract

Gravity model was used to analyse the impacts of the EU-SA TDCA’s reciprocal preferential tariff quotas on cheese and wine trade flows. The results showed that SA’s cheese exports to EU and total cheese trade between the parties had declined during the implementation of cheese tariff quotas. SA’s wine exports to EU and SA’s wine imports from EU had also declined during the implementation of the wine tariff quotas. However, the effects were insignificant on SA’s cheese imports from EU and total wine trade between the two parties. Trade diversion was detected on all wine trade flows, i.e. about 0.8% of exports, 2% of imports and 2.3% of the total trade were diverted during the wine tariff quota implementation. However, there was no proof of trade creation and diversion on both cheese imports and exports, except that there was a diversion of about 4.1% of the total cheese trade.

Keywords: gravity model, cheese, wine, trade creation and diversion, EU-SA TDCA

JEL: C23, F14, F15

Vol. 47 (2008), No. 4: 343-364