Open AccessTrade Impacts of EU-ESA EPA Transitional Period On Malawi Sugar Exports
Author(s) -
Yalenga Nyirenda,
Abdi-Khalil Edriss,
Horace Phiri
Publication year - 2017
Publication title -
european scientific journal
Language(s) - English
Resource type - Journals
eISSN - 1857-7881
pISSN - 1857-7431
DOI - 10.19044/esj.2017.v13n13p390
Subject(s) - international economics , international trade , european union , business , sugar , competition (biology) , free trade , economics , renunciation , market access , agricultural economics , agriculture , geography , ecology , biochemistry , philosophy , theology , archaeology , biology , chemistry
The renunciation of the Sugar Protocol between European Union (EU) and African, Caribbean and Pacific (ACP) countries in 2007 initiated a gradual reform process that will culminate into a reciprocal Duty Free Quota Free non-preferential access for all sugar producers in 2017. This paper analyzes how the reforms implemented this far have affected Malawi sugar exports. Since expansion of regional trade is seen as one of the adaptation measures for affected sugar industries. The study also analyzed the effect of regional integration areas. The results show that the EU sugar price reforms and elimination of country specific quotas had a positive influence of exports. Malawi being a low cost producer, it was not affected by falling prices and benefited to expanded access granted by a group safeguard. However, the production quotas for EU producers and high tariffs nonpreferred producers meant that Malawi was still shielded from competition that will prevail when the EU market is fully liberalized.