GTAP Resources: Resource Display
| GTAP Resource #7527 |
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"Trade Effect of the European Union Deforestation Regulation (EUDR) on African Cocoa and Coffee Exports" by Mukwaya, Rodgers Abstract The European Union (EU) has adopted a regulation to address global deforestation, the European Union Deforestation Regulation (EUDR), effective as of June 29, 2023, aims to reduce global deforestation by restricting imports linked to deforestation. This study aims to evaluate the effect of the EUDR on African exports of cash crops included in the EUDR scope - and the welfare impact across Africa. The study uses the GTAP computable general equilibrium (CGE) model to evaluate the possible trade and welfare effects of the EUDR on African trade and welfare. The increase in production costs due to EUDR compliance are modelled as a decrease in the trade efficiency parameter in the GTAP model for all African countries exporting select cash crops (coffee, and cocoa), to the EU The results indicate a 24 percent decrease in African exports of cash due to higher EUDR compliance costs for small-scale farmers. The results indicate that the EUDR will result in a net welfare loss of USD 2.0 billion for African countries however, the distribution of these gains will not be uniform across the region. |
| Resource Details (Export Citation) | GTAP Keywords | ||||||||||||||||
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- Trade and the environment - Non-Tariff barriers - Africa (Central) - Africa (East) - Africa (North) - Africa (Southern) - Africa (West) |
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Public Access  Paper (596.5 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
