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Abstract
One of the most important policy measures used by government to influence agricultural
production and trade patterns are tariffs. A substantial depreciation in the exchange rate will
not be enough to compensate for the negative effects of removing tariffs if the playing field is not
level for producers in South Africa. Although the import multiplier show that less inputs will be
imported, this saving on foreign exchange is not big enough to outweigh the total impact of
imports on the balance of trade. The value-added multiplier clearly indicate that reinvestment
and consumer spending (buying power) in agriculture will receive a severe blow. Employment
will be reduced, thus increasing the supply of labour into other sectors.