SADC Trade with the European Union from a Preferential to a Reciprocal Modality

Rehab O. M. Osman

South African Journal of Economics, 2015, vol. 83, issue 1, 23-40

Abstract: This study employs a global computable general equilibrium (CGE) model to examine the potential impacts of the Economic Partnership Agreements (EPAs) between the European Union (EU) and the Southern African Development Community (SADC). The simulation results suggest that a comprehensive EPA scenario is welfare-improving for many SADC members. SADC preferential access to the EU markets is the key source for the prospective welfare and terms of trade gains. Overall, SADC production structures become more concentrated in export-oriented sectors. These structural changes are accompanied by a high degree of adjustment and substantial fiscal losses.

Date: 2015
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