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GTAP Resource #4630

by Peters, Ralf, David Vanzetti and Christian Knebel

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

Resource Details (Export Citation) GTAP Keywords
Category: 2015 Conference Paper
Status: Published
By/In: Presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia
Date: 2015
Created: Peters, R. (4/8/2015)
Updated: Vanzetti, D. (7/6/2017)
Visits: 1,423
- Economic development
- Non-Tariff barriers
- Preferential trading arrangements
- Africa (Southern)

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