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| Effects of Free Trade Area between China and Southern African Customs Union——Based on the Simulation by GTAP |
| LI Xiue1,KONG Qingfeng2 |
1. University of International Business and Economics;University of Leeds
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Abstract Based on the trade status, this paper argues that the trade relationship between China and Southern African Customs Union (SACU) is complementary, thus there is a strong basis for establishing free trade area between China and SACU. The simulation results of GTAP 7.1 show that: members of this FTA will benefit from each other. Economic well-being, volume of aggregate imports and exports, and the output, both export and import of the industries that have comparative advantage will increase. In addition, countries outside this FTA (e.g. EU-27, the U.S.) will be affected too. Therefore, the establishment of China-SACU FTA should be actively promoted, through negotiations on tariff reduction and the signing of free trade agreements, to increase the development of members’ macro economy and comparative-advantage industries. Moreover, the Chinese government should actively respond to the FTAs negotiations between South Africa or SACU and other countries, e.g. those of EU-27 and U.S.
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Received: 04 January 2013
Published: 15 July 2013
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Corresponding Authors:
LI Xiue
E-mail: li_uibe@126.com
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2013, Vol. 
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