oa South African Journal of Economic and Management Sciences - Influences of the Free Trade Agreement between South African and the European Union on the South African fresh orange industry
|Article Title||Influences of the Free Trade Agreement between South African and the European Union on the South African fresh orange industry|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 University of Natal, Pietermaritzburg|
|Publication Date||Sep 2000|
|Pages||484 - 498|
|Keyword(s)||Agricultural exports, EU, European Union, Free trade agreements, Free-on-board processes, Fresh orange industry, Fruit, FTA, Industry, JEL, Orange prices, Orange production, Oranges, Q 13, Regional production and Trade|
ISI Social Science
This paper evaluates the effects of the Free Trade Agreement (FT A) 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 FT A 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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