GTAP Resources: Resource Display
| GTAP Resource #4630 |
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"SAND IN THE WHEELS: NON-TARIFF MEASURES AND REGIONAL INTEGRATION IN SADC " by Peters, Ralf, David Vanzetti and Christian Knebel Abstract The Southern African Development Community (SADC) comprises 15 countries with the common objective of regional integration. Member countries have been successful in reducing tariffs since 2000, but intra-regional trade has not increased as expected. One likely reason is that significant non-tariff barriers (NTMs) remain. The most common NTMs in SADC are sanitary and phyto-sanitary restrictions, certification procedures, quantity control measures, technical regulations, government procurement, investment restrictions and intellectual property rights. Some measures are legitimate, such as those relating to food safety and the introduction of invasive species, but other measures are used to limit trade to protect domestic producers. It is relatively simple to list the numerous non-tariff measures, but assessing their impact is more difficult. Two methods involve trying to measure the effect on quantity using a gravity model or by looking at the gap between world and domestic prices. Data on NTMs for the SADC region is incomplete and a greater effort at data collection is needed. However, to illustrate the methodology and potential impacts of reducing barriers, we assume SADC countries have similar NTMs as the average for Africa. The impacts on trade, output, employment and incomes of reducing these barriers are assessed using a global general equilibrium model. Depending on the initial trade flows and the magnitude and scope for removing the non-tariff barriers, the increases in national exports are up to 4.5 per cent. National output, employment and incomes will also increase in all SADC countries. Keywords: non-tariff measures, regional integration, welfare JEL Classification: F14, F15, F16 ... |
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- Economic development - Non-Tariff barriers - Preferential trading arrangements - Africa (Southern) |
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Public Access  GTAP Resource 4630 (897.9 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
