Original Research

Influences of the free trade agreement between South Africa and the European Union on the South African fresh orange industry

S. H. Gay, W. L. Nieuwoudt
South African Journal of Economic and Management Sciences | Vol 3, No 3 | a2626 | DOI: https://doi.org/10.4102/sajems.v3i3.2626 | © 2018 S. H. Gay, W. L. Nieuwoudt | This work is licensed under CC Attribution 4.0
Submitted: 06 July 2018 | Published: 30 September 2000

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S. H. Gay, University of Natal, South Africa
W. L. Nieuwoudt, University of Natal, South Africa

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Abstract

This paper evaluates the effects of the Free Trade Agreement (FTA) between South Africa and the European Union (EU) on the South African orange industry. Oranges account for ten percent of South African agricultural exports. The aggregate trade simulation model used here is designed on the programme STELLA, and consists of regional production models, a local market model, an export model and an exchange rate model. Results indicate that the FTA is expected to have small positive effects on both South African producers and consumers. This is caused by increasing real free-on-board prices and decreasing real local prices of oranges. Total area under oranges will increase more with the FT A, which thus results in a larger orange production too.

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Crossref Citations

1. PRIVATISING AGRICULTURAL R&D, AN EXAMPLE FROM THE SOUTH AFRICAN SUGAR INDUSTRY
T W Nieuwoudt, W L Nieuwoudt
Agrekon  vol: 43  issue: 2  first page: 228  year: 2004  
doi: 10.1080/03031853.2004.9523647