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Impact of Zimbabwe - South Africa Trade Relations: A Bilateral, Regional, or Multilateral Approach?
Impact of Zimbabwe South Africa Trade Relations A Bilateral Regional or Multilateral Approach Author:Levi Mayihlome This is a NAVAL POSTGRADUATE SCHOOL MONTEREY CA report procured by the Pentagon and made available for public release. It has been reproduced in the best form available to the Pentagon. It is not spiral-bound, but rather assembled with Velobinding in a soft, white linen cover. The Storming Media report number is A028133. The abstract provided by... more » the Pentagon follows: The pursuit of a seemingly unfruitful bilateral trade arrangement with South Africa, and continued participation in overlapping, but nonfunctional regional free trade areas, has left Zimbabwe in foreign trade dilemma, specially in the light of the deteriorating terms of trade with South Africa, her main trading partner and competitor for both mutual and regional trade. This thesis examines the various regional trade possibilities involving Zimbabwe and South Africa using the free trade area and customs union models of international trade. Whereas a functional bilateral trade agreement or a regional customs union culminating in a common market might improve Zimbabwe's regional competitiveness in the short run' due to South Africa's economic dominance and protectionist trade policies, Zimbabwe's potential to benefit from trade with non-participants would be severely curtailed. However, a broad free trade area, which allows flexibility to pursue national trade policies, seems less harmful. The analysis concludes that only a broad free trade area, superseding a' current eastern and southern African regional trade arrangements, would increase Zimbabwe's economic welfare. It would be in the interests of all regional countries to finalize a single broad free trade area rather than maintain the status quo.« less