Contents of the free trade agreement between south africa and the european union. In march 1999, south africa concluded an historic trade agreement with the european union eu that will result in the abolition of tariffs on more than 90 percent of trade between the 15 eu countries and south africa within 12 years. Given the dependence on east asian economies, particularly china, and the continuing reliance on primary commodities in the export basket of many developing. Most are north south, but a strong sample of south south agreements is also included.
There are no countries in south asia that have signed a bilateral agreement with a. The sadc free trade area was achieved in august 2008, when a phased programme of tariff reductions that had commenced in 2001 resulted in the attainment of minimum conditions for the free trade area 85% of intra regional trade amongst the partner states attained zero duty. The second feature of south south trade in gvcs, and also in southern exports more generally, is their continuing reliance on primary commodities, in particular oil, gas. Trade agreements south african institute of international affairs. This study examines the value, intensity, complementarity, balance, and structure of south africa s trade with its partners in the brics brazil, russia, india, china, south africa alliance. The minister of international relations and cooperation is entrusted with the formulation, promotion, execution and daily conduct of south africas foreign policy. The country is also a beneficiary of a number of nonreciprocal trade arrangements among them the african growth and opportunity act and the generalised system of preferences. In fact, 7 out of 10 of south africas top trading partners are european countries. This book is the first comprehensive analysis of the legal framework within which it is being pursued.
South africa has expanded its trading routes and is trading with countries in the north american free trade agreement nafta, united states us, germany, india, china, brazil and countries within the southern african development community. We provide a short history of the trading relationship between china and africa. British exports to south africa were worth r14 billion in 1998 while south african exports to britain totaled r22 billion. The global value chain was one of the defining features of the agreements. Sadceu economic partnership agreement tralac trade law. Southern african development community free trade area. The growth in transport and communication networks has promoted trade in africa. Trade and trade policy in south africa dna economics. South africa is expected to be one of the biggest beneficiaries of the agreement on the african continental free trade area afcfta, which was signed by african leaders on wednesday in kigali, rwanda.
The departments overall mandate is to work for the realisation of south africas foreign policy objectives by. For agricultural exports, the uk was the 3rd biggest market in the world in 2015 with 30% of all sas fruit exports going to the uk and 25% of all wine exports. Decomposition of african nonoil export growth, 19702000 20 figures 1. The committee on regional trade agreements crta considers individual regional agreements under the transparency mechanism for rtas see below. The methodology of the study is based on comparing trade statistics between the years 1999 and 2004. Below is a table summarising the trade agreements affecting south africa. Europe is the biggest source of trade for south africa. Subsaharan africa is one of the fastest growing regions in the world.
The african growth and opportunity act was signed into law by president clinton in may 2000 with the objective of expanding u. The european union eu is currently negotiating a series of economic partnership agreements epas with the 79 countries from the african, caribbean and pacific acp region with the aim of promoting acpeu trade and ultimately contributing, through trade and investment, to sustainable development and poverty reduction. Trade agreements african growth and opportunity act. Past performance and the way forward1 prepared by yongzheng yang and sanjeev gupta february 2005 abstract this working paper should not be reported as representing the views of the imf.
Taking over commitments to existing agreements after the new south african government assumed office in may 1994 it did not challenge these. Countries involved what this means for you products involved certificate of origin. He is international law librarian and adjunct associate professor of law at fordham law school, where he teaches international investment law, multinational. Expansion in trade shows evidence of this process of globalisation.
Bali 20 was regarded as a breakthrough, because agreements on trade at bilateral, regional and interregional level are generally complex and difficult to implement. Au assembly of heads of state and government decreed, in 2012, the decision to boost intra african trade and fasttrack the continental free trade area cfta. Southsouth trade and its implications for the world economy. Among other regional trade agreements which were reached during the 2009 summit was venezuela signing an oil agreement with south africa and a memorandum of understanding with sierra leone to form a joint mining company. South africa international trade, information about. Here, south africa s active involvement in multilateral organizations, such as the indiabrazil south africa dialogue forum ibsa, the new asia africa strategic partnership naasp, the indian ocean rim association for regional cooperation iorarc, and the annual brics summits has helped in the partial recovery in bilateral trade.
South africa and zimbabwe severed official diplomatic ties in 1980 when zimbabwe gained its independence. Article 40 and 41 of the treaty provides basis for national and community action to deal with private. Regional integration and regional trade agreements. In 1994, the bilateral relations between south africa and zimbabwe were normalised, with the. The african continental free trade agreement afcfta is a trade agreement which is in force between 27 african union member states. Because of south africas predominance in the sub region, the implementation of this agreement will have an impact on trade flows in the rest of southern. It provides an explanation of regional trade agreements rtas negotiation rules, related statistics, and some featured articles on regional trade agreement topics. Trade area afcfta agreement1 to the african union au, meeting the threshold for the agreement to come into effect. The protracted and difficult epa negotiations reflect to some extent the difference between the african paradigm of regional integration and the eus model of regional trade agreements, but also the challenges of african regional integration. Pdf this paper investigates regional trade agreements in africa by. Ron sandrey summary and key points the current sacu trade regime combined with the regional dominance of south africa restricts the blns countries to limited trade policy space.
Working with partners such as the wto and oecd, the world bank group informs and supports client countries that are seeking to sign or deepen regional trade agreements. South africa has also negotiated agreements with the european free trade association and mercosur. Impacts of the sadc free trade agreement on south african agricultural trade article pdf available in international journal of entrepreneurship and innovation 152. This report provides an indepth analysis of the legal provisions of the sacu agreement of 2002 dealing with regional cooperation on competition policy and crossborder unfair trade practices. After protracted and difficult negotiations, agreement was recently reached on the dimensions of a south africaneu free trade deal. So the au decided, for now, to emphasis the creation of the continental free trade area, leaving aside the common market, and economic and monetary community. Trade agreements international trade administration. Boosting intra regional trade in africa, and also within the southern african development community sadc, has for some years now been an important focus of the regional integration agenda. Various trade patterns between africa and china are then critically examined, with a focus on the opportunities and challenges of the trading relationship on african nations. Talkmore chidede, tralac researcher, discusses how intra regional trade in the southern african development community can be improved. For instance, in communication equipment, south south trade accounts for about half of world trade, which, again, reflects the presence of regional value chains in east asia. Britain is south africas largest single trading partner. The united kingdom uk is south africa s 7th biggest trading partner and 2nd biggest trading partner in the eu. However, during the period 1980 to 1994, south africa maintained unofficial relations with zimbabwe through its trade office in harare.
It also lists examples of regional trade agreements. The impact of free trade agreements v executive summary this rapid evidence assessment rea addresses two questions, to which it finds the literature offers partial answers that can be supplemented by flanking analyses. Recent trends and future prospects 1 introduction since 1994, south africa has been rapidly reintegrated into the global economy, with the contribution of imports and exports rising strongly as a percentage of gdp. South africa has signed a number of preferential trade agreements with its. Outcomes so far 78 cooperating for regional public goods 95 the continental free trade area in the broader landscape of african integration 105 expected gains from the continental free trade agreement 114 dos and donts for integration policy makers 121 notes 123. Jul 11, 2019 fiftyfour african nations met on sunday to work out an agreement on the pancontinental free trade zone. The political economy of regional trade agreements in africa. Table 19 regional trade agreements among brics countries table 20 contribution by small and mediumsized enterprises in selected economies part c. See the tpr gateway for explanations and background south africa is included in tprs of the southern african customs union sacu. South africa will be one of the biggest beneficiaries from. South africa, while part of the african caribbean pacific group of countries, is not party to the same preferential trade arrangements granted to the african caribbean pacific countries under the cotonou agreement. Integration is once again a concept so much in vogue. An evaluation of the trade relationships between south.
Three major agreements just signed by china and south africa president cyril ramaphosa has managed to sign an investment deal with china valued at r196 billion. The united states is another of south africa s largest trading partners. The book also covers monetary unions as well as intra african regional integration, and examines free trade agreements with non african regions, including the economic partnership agreements with the european union. South africa has signed a number of preferential trade agreements with its trading partners in the past few years. Free trade agreements and the sadc economies global trade. Currently no free trade agreements fta have been concluded on a bilateral basis between the united states and subsaharan african countries. In turn, by 2012, south africa offered to liberalise 86% of its duties on eu originating products. Negotiations and agreements trade european commission. A south african trade policy and strategy framework, april 2010 v foreword by the honourable dr. Data and indicators on the content and depth of regional trade agreements. Most products trade, development and cooperation agreement tdca free trade agreement south africa and the european union eu the eu offered to liberalise 95% of its duties on south african originating products by 2010.
Free trade agreements an opportunity for africa agoa. Integration for africa s economic prosperity 75 integrating the african market. Full details of the eus ongoing trade negotiations the eus fta implementation report other languages and the staff working document 2019. South africa and the european union eu the eu offered to liberalise 95% of its duties on south african originating products by 2010. South africas trade relations with the eu are governed by the trade, development and cooperation agreement concluded with the eu in 1999. Regional integration in africa world trade organization. Opening remarks the chairperson extended a word of thanks to the organisations present at the workshop trade law centre tralac, south african institute of international affairs saiia, trade and industrial policy strategies tips, business unity sa busa and agri sa and handed over to the presenters. Articles 40 and 41 of the sacu agreement among the five member states botswana, lesotho, namibia, south africa and swaziland. However, various trade and investment framework agreements tifas are in place, both with individual countries as well as a number of regional. Some of these discussions are about reversing or renegotiating current arrangements, as in the case of brexit and the north american free trade agreement. South africa has been a wto member since 1 january 1995 and a member of gatt since june 1948.
Southern african development community sadc, arab maghreb. In africa, particularly in subsaharan africa, the first rtas were established as mechanisms that would facilitate the continents unity in postcolonial times. The promoters of economic globalization are using it to justify the unprecedented expansion of the power of transnational corporations. According to tips 2011, in 1990, 17% of the south african imports were. An evaluation of the trade relationships between south africa. The doha negotiating mandate section on regional trade agreements in the 2001 doha ministerial declaration.
The paper argues that the agreement is beneficial if it creates more trade between south africa and the european union. Regional trade agreements is a subsection of the world trade organization official website. African regional trade integration has grown exponentially in the last decade. Fiftyfour african nations met on sunday to work out an agreement on the pancontinental free trade zone. The eu has in place, or is negotiating, trade agreements with countries and regions around the world. Home news article free trade agreements an opportunity for africa. Deepening cooperation in services among brics members. Home finance south south trade and its implications for the world economy. Text of the 2006 general council decision on the transparency mechanism for regional trade agreements.
The common market for eastern and southern africa comesa, east african. The impacts of the european union south africa free. Regional trade agreements rtas are currently at the center of many policy debates and are likely to shape trade and economic relations in the coming years. It is also mandated to hold discussions on the systemic implications of rtas for the multilateral trading system, as was reaffirmed by wto members at the 10th ministerial conference in nairobi in 2015. East asian countries like china, japan and taiwan have always been sas largest trading partners tips 2011. Pdf african regional trade agreements and intraafrican trade. Community eac, economic community of west african states ecowas. The european union south african trade and development cooperation agreement that came into effect in 2000, has as a progressive free trade agreement fta that has become the cornerstone of the regional trading landscape. Looking forward to potential gains the ex ante studies are based on a specific general equilibrium model structure that allows a rich analysis of the impact of rtas at both the aggregate and sectoral levels.
The global south is making increasingly significant contributions to global development. Th at is a better outcome than in latin america, but. Pdf impacts of the sadc free trade agreement on south. African regional trade agreements as legal regimes by.
African regional trade agreements as legal regimes by james. Implications for the blns countries botswana, lesotho, namibia and swaziland of south african trade policy reforms. Regional trade and preferential trading agreements world bank. South africa has signed many agreements with its trading partners in the past few years. North carolina journal of international law and commercial regulation volume 35number 3 article 3 spring 2010 african regional trade agreements as flexible legal regimes james thuo gathii. What has been the impact of free trade agreements ftas between developed and. It will fill a huge knowledge gap and serve as an invaluable teaching and research tool for policy makers in the public and private sectors, teachers, researchers.
African regional trade agreements and intraafrican trade. Intra african trade in intermediates offers broader scope for regional chains to emerge 109 countries have shown their determination to join value chains 110 the persistence of barriers to trade 1. Trade, development and cooperation agreement tdca free trade agreement. Rta regional trade agreement roo rules of origin sadc southern african development community tf trade facilitation unctad united nations conference on trade and development uneca united nations economic commission for africa. The country is also a beneficiary of a number of nonreciprocal trade arrangements among them the african growth and opportunity act and the generalised system of preferences of a few developed countries. The promise that integration holds, in the form of the enlargement of local markets, the realization of economies of scale and the strengthening of bargaining positions in global negotiations is a sufficient allure to make the countries of africa try time and again to forge these regional trade agreements. It highlights the increasing dynamism of intrabrics trade, which started at the turn of. Regional trade agreements rtas have been proliferating in the past three decades, reflecting among other things the increasing involvement of developing economies in international trade. South africa s trade relations and development cooperation with the european union are currently governed by the trade, development and cooperation agreement tdca the trade, development and cooperation agreement has established a free trade area that covers 90% of bilateral trade between the eu and south africa. The free trade area will be the biggest in the world in terms of the number of countries involved. Update on south africas department of trade and industry. Bilateral investment treaties bit trade and investment agreements tifa download the agreements.
Most ac tivity has been in eastern europe, northern. A historical and bibliographic account of ecowas and cemac by victor essien victor essien holds ll. It is therefore worthwhile knowing about and making use these agreements where applicable. The formation of regional trade agreements has been, by far, the most popular form of reciprocal trade liberalization in the last fifteen years. Presentation to the parliamentary portfolio committee. At the same time, in its external trade and investment policies, south africa was adopting positions accommodating. Regional trade agreements document code wtreg and n search. The eu has trade agreements in place with these countriesregions, but both sides are now negotiating an update. Agreement and also what impacts this agreement has on south africa s trade with southern africa, and the rest of the world. The 21 st trading agenda, being pioneered through regional trade agreements, was a reflection of what happened in the global economy. Three major agreements just signed by china and south africa. Nigeria or south africa have benefitted from strong growth in china and the boom in commodity prices. Fundamentally, the free trade area agreement was tailored to accommodate the interest of the south african business community while aiming to open regional markets for south african. The views expressed in this working paper are those of the authors and do not necessarily represent.
Simple average of applied mfn tariffs, 1997 and 2004 12 3. The international monetary fund predicts that this growth will only acceleratereaching around 5. International trade and economic development division. As of july 2019, 54 states have signed the agreement. Southsouth cooperation is a term historically used by policymakers and academics to describe the exchange of resources, technology, and knowledge between developing countries, also known as countries of the global south. Official checkpoints on selected routes of western african highways, december 2000 10 2. Part i definitions article 1 definitions for the purpose of this agreement. Summary of main trade agreements between south africa and the rest of the world. The economy has become more open, more productive and more outward orientated. African regional trade agreements as legal regimes african regional trade integration has grown exponentially in the last decade. Find decisions of wto bodies concerning the regional trade agreements in the analytical index guide to wto law and practice. A south african trade policy and strategy framework. No systematic difference in the impact of north south and south south agreements was found in the assessed literature.