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