scholarly journals The Effects of AfCFTA on Food Security Sustainability: An Analysis of the Cereals Trade in the SADC Region

2020 ◽  
Vol 12 (4) ◽  
pp. 1419 ◽  
Author(s):  
Michael Takudzwa Pasara ◽  
Nolutho Diko
Keyword(s):  
Food Security ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Democratic Republic Of Congo ◽  
Consumer Surplus ◽  
Trade Agreement ◽  
Trade Diversion ◽  
African Countries ◽  
Multiplier Effects ◽  
Trade Perspective

The signing of the African Continental Free Trade Agreement (AfCFTA) has stimulated a lot of trade potential in Africa that could see the continent significantly improving its intra-trade levels, thereby boosting the economic welfare of Africans. In light of food security sustainability in the Southern African Development Community (SADC) region, this paper employed the World Integrated Trade Solution, Software for Market Analysis and Restrictions on Trade (WITS-SMART) simulation model to assess the potential effects of the AfCFTA on trade in cereals. Cereals have been regarded as the most critical component of food security. The model indicated trading partners for each of the 15 SADC countries, their level of trade creation, trade diversion, consumer surplus, welfare and revenue effects of any regional trade agreement. The results indicated that the AfCFTA will only lead to positive outcomes in four (Angola, the Democratic Republic of Congo, Madagascar and Namibia) of the fifteen SADC countries, with the rest remaining unchanged. In general, previously closed economies, that is, economies which were not part of a free trade agreement (FTA) or a deeper arrangement will stand to gain more than open economies because they are already opened up at the free trade level, which is equivalent to the AfCFTA. Thus, as far as cereals and food security is concerned, the AfCFTA will add minimal value. However, the overall value gains are likely to be greater when all food categories are included in the simulations. In general, the study recommends that African countries should deepen their integration levels to perhaps common markets where production factors, that is, labour and capital, become mobile. This will have multiplier effects in improving continental food security sustainability from a trade perspective.

scholarly journals Trade Creation and Trade Diversion in the North American Free Trade Agreement: The Case of the Agricultural Sector

2007 ◽  
Vol 39 (1) ◽  
pp. 121-134 ◽  
Author(s):  
Dwi Susanto ◽  
C. Parr Rosson ◽  
Flynn J. Adcock
Keyword(s):  
Free Trade ◽  
North American ◽  
Free Trade Agreement ◽  
Agricultural Sector ◽  
Trade Agreement ◽  
Trade Diversion ◽  
The North ◽  
Tariff Rates ◽  
Agricultural Imports ◽  
The U.S

This paper examines the effect of the U.S.-Mexico trade agreement under the North American Free Trade Agreement (NAFTA). The results suggest that U.S. agricultural imports from Mexico have been responsive to tariff rate reductions applied to Mexican products. A one percentage point decrease in tariff rates is associated with an increase in U.S. agricultural imports from Mexico by 5.31% in the first 6 years of NAFTA and by 2.62% in the last 6 years of NAFTA. U.S. imports from Mexico have also been attributable to the pre-NAFTA tariff rates. Overall, the results indicate that the U.S-Mexico trade agreement under NAFTA has been trade creating rather than trade diverting.

Thought This Was Easy? U.S.–Thailand Free Trade Agreement

2017 ◽  
pp. 1-20
Author(s):  
Peter Debaere ◽  
Christine Davies
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Diversion ◽  
Trade Negotiations ◽  
Customs Unions ◽  
Multilateral Trade ◽  
Excellent Opportunity ◽  
The U.S

This case describes and analyzes the negotiations surrounding the U.S.–Thailand free trade agreement (FTA) that never materialized. The case offers an excellent opportunity to discuss the complexities of trade negotiations, the welfare analyses of FTAs (with trade diversion and creation), and the growth of FTAs and customs unions (CUs) as opposed to multilateral trade liberalizations.

An application of the SMART model to assess impacts of the EVFTA on Vietnam's imports of automobiles from the EU

2017 ◽  
Vol 33 (2) ◽  
Author(s):  
Huong Vu Thanh
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Diversion ◽  
Market Analysis ◽  
Uneven Distribution ◽  
Trade Creation ◽  
Simulation Results ◽  
The Eu

This paper assesses the potential impacts of the European - Vietnam Free Trade Agreement (EVFTA) on Vietnam's imports of automobiles from the EU by adopting the Software on Market Analysis and Restrictions on Trade (SMART) based on two scenarios. The simulation results reveal that the EVFTA would result in a significant increase in Vietnam's automobile imports from the EU, implying that the EU would be still among the biggest car sources for Vietnam in the upcoming time. However, when Vietnam extends its coverage of tariff elimination to also ASEAN+3, the reduction in Vietnam's automobile imports from the EU would be considerable. Another important finding is that an uneven distribution in Vietnam’s additional automobile imports from the EU by nation, automobile group and automobile product would occur when the EVFTA comes into effect. In both scenarios, trade creation effects are higher than trade diversion effects and hence, the EVFTA could raise welfare of Vietnam. Based on these results, the paper ends by drawing out some implications for the Vietnamese government and domestic enterprises to be better prepare for the upcoming ambitious EVFTA.

African Continental Free Trade Agreement: the Pros and Cons on the Oil and Gas Industry in Nigeria

2021 ◽  
Author(s):  
Emmanuel Ayodele ◽  
Oshogwe Akpogomeh ◽  
Freda Amuah ◽  
Gloria Maduabuchi
Keyword(s):  
Free Trade ◽  
Free Trade Agreement ◽  
Oil And Gas ◽  
Trade Agreement ◽  
Oil And Gas Industry ◽  
African Countries ◽  
Gas Industry ◽  
Cheap Labour ◽  
Pros And Cons ◽  
The Impact

Abstract Nigeria has oil and gas as her major source of revenue, accounting for more than 80% of her foreign exchange, with the AfCFTA, that has been signed and ratified not just by Nigeria but by other African countries taking away tariffs on goods and services produced across the continent irrespective of the market where it's been sold. The AfCFTA being the second largest free trade agreement in the history of World Trade Organization is aimed at uniting African markets. This paper aims to review the framework of the continental free trade agreement, it pros and cons, its grey area, and its impact on the Oil and Gas Industry in Nigeria. The impact of the agreement on the local industries servicing the oil and gas industry is considered as well. The paper reviews the possible advantage of the AfCFTA on the Nigerian oil and gas market. The possible threats to nationalization in the oil and gas industry due to the availability of cheap labour and technical expertise across the continent in the country is analyzed. Solutions to protect the oil and gas industry in Nigeria is recommended as well.

Introduction

Eating NAFTA ◽  
2018 ◽  
pp. 1-26
Author(s):  
Alyshia Gálvez
Keyword(s):  
Foreign Direct Investment ◽  
Food Security ◽  
Free Trade ◽  
Direct Investment ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Noncommunicable Diseases ◽  
Small Scale ◽  
Security Model ◽  
The North

In this chapter, the main arguments of the book are outlined, including a rationale for a focus on diet-related illness and obesity as pernicious consequences of the North American Free Trade Agreement, a discussion of methods, and an outline of the text. The book is framed, as an analysis of the paradoxical rise in global popularity of Mexican food at the same time that ancestral milpa-based cuisine has fallen further from the reach of the average Mexican citizen. The rise in obesity and noncommunicable diseases as a consequence of Mexico’s reorientation of its economy away from small-scale agriculture and toward a food security model based on foreign direct investment is outlined.

Common Market for Eastern and Southern African Countries: Multiplicity of Membership Issues and Choices

2010 ◽  
Vol 18 (2) ◽  
pp. 217-232 ◽  
Author(s):  
Luwam Dirar
Keyword(s):  
Free Trade ◽  
Regional Integration ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Development Project ◽  
Common Market ◽  
Customs Union ◽  
African Countries ◽  
Member States ◽  
East African Community

The preferential trade agreement of Common Market of Eastern and Southern Africa (COMESA) was formed in 1982 with the objective of achieving deeper integration. In 1994 COMESA member states agreed to form a free trade agreement. The free trade agreement came into effect after nine member states ratified it. In 2004, Rwanda and Burundi joined the free trade agreement and increased the membership size to 11. In 2009 COMESA was transformed into a customs union. The purpose of the article is to analyse how formation of the COMESA customs union affects the current state of multiplicity of membership in Southern and Eastern African countries. The article argues that multiplicity of membership hinders deeper integration. Based on the assumption that deeper regional integration can play a role in the development project of Eastern and Southern African countries, the article tries to make a cursory review of the overlap of membership among COMESA, Southern African Development Community (SADC), Southern African Customs Union (SACU) and East African Community (EAC) states. It tries to draw policy choices of the way forward to end the multiplicity of membership. The analysis of this article is based on the percentile of each member state's rate of export. It is not a percentile of the total regional exports. Not all COMESA member states have been analysed in this article. The article mainly focuses on those COMESA member states that treat COMESA as their main trading block in Africa and that also have multiple memberships in SADC, SACU and EAC.

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