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South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures

Dissertation (MSc (Agric) Agricultural Economics and Agribusiness Management)--University of Pretoria, 2023.

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Other Authors: Kalaba, Mmatlou W.
Format: Thesis
Language:en_US
Published: University of Pretoria 2023
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author2 Kalaba, Mmatlou W.
author_browse Kalaba, Mmatlou W.
author_facet Kalaba, Mmatlou W.
collection Thesis
dc_rights_str_mv © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.
description Dissertation (MSc (Agric) Agricultural Economics and Agribusiness Management)--University of Pretoria, 2023.
format Thesis
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institution University of Pretoria (South Africa)
language en_US
last_indexed 2026-06-10T12:37:55.093Z
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provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2023
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spelling oai:repository.up.ac.za:2263/89628 South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures Kalaba, Mmatlou W. khanimambah@gmail.com Hlungwani, Khanimamba UCTD Non-tariff measures Market access Standards and regulations World Trade Organisation Trade, Development and Cooperation Agreement Dissertation (MSc (Agric) Agricultural Economics and Agribusiness Management)--University of Pretoria, 2023. The World Trade Organization (WTO) was formed in 1995. Since then, trade liberalisation has been on the agenda, resulting in diverse trade agreements and a subsequent decline in import tariffs. With the decrease in import tariffs, trade is expected to increase. However, despite this trend as well as a great increase in global trade since the 1990s, certain developing countries still struggle to participate in global trade. South Africa and the European Union (EU) trade agreements have existed since 2000. This is through the Trade, Development and Cooperation Agreement (TDCA)—later replaced by the Southern African Development Community-European Union Economic Partnership Agreement (SADC-EU EPA) in 2016. An expected result of such agreements is an improvement in trade relations and flows between the partners. Thus, it can be expected that South Africa would export more orientated products to the EU. South Africa became a net beef exporter in 2014. Trade flows for beef between South Africa and the EU, however, reveal the opposite of what was expected. Beef exports from South Africa to the EU have declined since the early 2000s. Trade patterns demonstrate that South Africa increasingly traded with countries with which it had no formal trade agreements, such as in the Middle East and East Asia. South African beef exports to the EU rapidly declined despite trade liberalisation between the two trading partners and South Africa becoming a net beef exporter. Thus, this research investigates South Africa’s market access challenges in the EU. Since the decrease in beef import tariffs did not result in the expected increase in trade between South Africa and the EU, this study focused on investigating whether the observed trends relate to non-tariff measures applied. It further investigated whether the lack of market access concerns non-compliance with EU Non-tariff measures (NTMs) regulations and requirements. The gravity model of international trade assessed the effects of EU NTMs and South Africa’s compliance with these regulations on its beef exports to the EU. This model involved data between 1995 and 2018. Beef exports from South Africa destined for the EU were the dependent variable. Gross domestic product (GDP) per capita in South Africa and the EU, NTMs applied by the EU, beef production in South Africa, tariffs, and a compliance variable functioned as explanatory variables. A compliance index variable was developed to evaluate South Africa’s compliance with EU NTM regulations and requirements. This index was developed from South Africa’s policies complying with EU NTMs in a specific year, and NTMs enforced by the EU. The policies and NTMs focused on animal products, particularly red meat products, between 1995 and 2018. This study established that NTMs applied on beef imports by the EU have harmed South Africa’s beef exports to the EU. Furthermore, although trade agreements between South Africa and the EU have reduced tariffs applied in the beef industry, tariffs continue to negatively affect South Africa’s beef exports to the EU. In evaluating South Africa’s compliance with EU NTM regulations, a divergence was established between EU NTM regulations and requirements on animal products and South Africa’s policies on the same products. During the period when South Africa’s beef exports to the EU declined, NTMs applied by the EU increased quicker than South Africa’s response to them. The divergence between EU NTM regulations and requirements and South Africa’s policy response and thus compliance was prevalent between 2010 and 2018. Thus, the study recommends an evaluation of South Africa’s policies, affecting beef trade and other animal products such that they respond to the changing trade environment, particularly with respect to the use of NTMs. African Economics Research Consortium Bureau for Food and Agricultural Policy (BAFP) Agricultural Economics, Extension and Rural Development MSc (Agric) Agricultural Economics and Agribusiness Management Unrestricted 2023-02-16T10:20:37Z 2023-02-16T10:20:37Z 2023-04 2023 Dissertation * A2023 https://repository.up.ac.za/handle/2263/89628 DOI:https//doi.org/10.25403/UPresearchdata.22101842 https//doi.org/10.25403/UPresearchdata.22101842 en_US © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria
spellingShingle UCTD
Non-tariff measures
Market access
Standards and regulations
World Trade Organisation
Trade, Development and Cooperation Agreement
South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures
title South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures
title_full South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures
title_fullStr South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures
title_full_unstemmed South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures
title_short South African market access challenges in the European Union : a case of regulatory compliance and non-tariff measures
title_sort south african market access challenges in the european union a case of regulatory compliance and non tariff measures
topic UCTD
Non-tariff measures
Market access
Standards and regulations
World Trade Organisation
Trade, Development and Cooperation Agreement
url https://repository.up.ac.za/handle/2263/89628
https//doi.org/10.25403/UPresearchdata.22101842