Report
Published:
Can trade preferences stimulate sectoral development? The case of Namibian and Botswanan beef exports to Norway
Summary:
• While market access quotas have generated high levels of rents for traders and exporters in Namibia, Botswana, Norway, and offshore entities in the UK, their developmental benefits are diffuse, unclear, and difficult to unpack;
• The consolidation of trade between small supply (Namibia, Botswana) and demand markets (Norway) provides some unique advantages for trading parties, given the former’s efficiency and scale disadvantages in international trade, and the latter’s desire to actively manage its food imports;
• However, such a strategy is not necessarily replicable or scalable, as it entails both high entry costs for access and high risks from the over-reliance on a limited number of markets and the specter of animal disease incursions.
• The consolidation of trade between small supply (Namibia, Botswana) and demand markets (Norway) provides some unique advantages for trading parties, given the former’s efficiency and scale disadvantages in international trade, and the latter’s desire to actively manage its food imports;
• However, such a strategy is not necessarily replicable or scalable, as it entails both high entry costs for access and high risks from the over-reliance on a limited number of markets and the specter of animal disease incursions.
- Published year: 2020
- Publisher: NUPI
- Page count: 4
- Language: English
- Journal: NUPI Policy Brief
Written by
Ben Bennett
Karl M. Rich