Africa’s Agricultural Trade Reform and Development Options

The document examines the constraints on African agricultural growth, highlighting how developed country tariffs and subsidies depress world prices by approximately 12% annually. It argues that while developed country protectionism is a major hurdle, Africa's own high average agricultural tariffs (75%) and a focus on food self-sufficiency rather than trade-led security further inhibit productivity. The author advocates for an export-oriented growth strategy supported by the WTO's Doha Round and domestic investments in rural infrastructure and credit.

• Developed country agricultural trade barriers and subsidies significantly lower global prices, which negatively impacts African producers. Combined, tariffs and subsidies reduce all agricultural prices by about 12% annually, which in 2001 could have cost African agricultural producers US$7.1 billion and exporters US$168 million.
• Tariff escalation in developed economies—where processed goods face higher tariffs than raw materials—prevents African exporters from diversifying into higher-value products. This is illustrated by the cocoa industry, where developing economies produce 90% of world cocoa beans but only 4% of global chocolate output.
• Special trade preferences from developed countries are largely ineffective for Africa because they are often arbitrary, exclude competitive goods like beef, cotton, and sugar, and provide minimal income gains (US$60 million per year) compared to the benefits of eliminating general trade distortions.
• Africa's own trade policies hinder its agricultural sector; the continent's average tariff for agricultural imports is 75%, which is higher than the world average of 62% and the Asia Pacific average of 34%. This protectionism reduces the incentive for farmers to increase productivity.
• The pursuit of food self-sufficiency through trade barriers and price supports is counterproductive to long-term food security. Evidence suggests that lower rates of food importation are generally associated with higher rates of food insecurity.
• African countries do not currently face significant constraints from WTO rules regarding agricultural support. Between 1995 and 1999, Africa's average annual spending on agricultural support was only 1.8% of agricultural value added, far below the EU's 65%.

APA

Perkins, F. (2003). Africa’s Agricultural Trade Reform and Development Options. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2008/04/tpb1.pdf

Chicago

Perkins, Frances. Africa’s Agricultural Trade Reform and Development Options. South African Institute of International Affairs, 2003. https://saiia.org.za/wp-content/uploads/2008/04/tpb1.pdf.

Wikipedia

{{cite report |last1=Perkins |first1=Frances |title=Africa’s Agricultural Trade Reform and Development Options |publisher=South African Institute of International Affairs |date=June 2003 |url=https://saiia.org.za/wp-content/uploads/2008/04/tpb1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{perkins2003africas, author = {Perkins, Frances}, title = {{Africa’s Agricultural Trade Reform and Development Options}}, institution = {South African Institute of International Affairs}, year = {2003}, month = jun, url = {https://saiia.org.za/wp-content/uploads/2008/04/tpb1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }