POTENTIAL IMPLICATIONS OF THE ECONOMIC PARTNERSHIP AGREEMENT ON SADC BEEF EXPORTERS TO EU: THE CASE OF BOTSWANA

Botswiri Oupa Tsheko

The IUP Journal of Agricultural Economics, 2007, vol. IV, issue 1, 56-65

Abstract: The African Carribean and Pacific-European Union (ACP-EU) Partnership Agreement signed in Cotonou in June 2000, provides a new framework for economic and trade cooperation between ACP countries and the EU. In this study, the Social Accounting Matrix (SAM) multipliers are used to sort out the relative empirical importance of different types of trade liberalization. The results show that there would be a negative impact on the economy as a result of moving away from the current preferential trade arrangement between the EU and ACP, to the reciprocal arrangement under the Economic Partnership Agreements (EPA). However, the consumers of Botswana are likely to benefit from the EPA agreement through the import of relatively cheaper agricultural (cereals) goods. Tariff reduction in food products like beef and dairy, will benefit the poor very significantly. But the export earnings of Botswana’s beef may decline because of stiff competition from the other exporters.

Date: 2007
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