Political economy of trade with the European Union : South Africa’s pursuit of narrow self-interest

Abstract

Abstract: This paper explores how South Africa fits into the regional pattern of trade and what a Free Trade Agreement (FTA) with the European Union (EU) meant for South Africa’s regional trading partners. The trade agreement provides an illustration of this facet of South Africa’s foreign policy with a particular consideration for how this has affected SACU and the SADC region. It clearly demonstrates an instance when South Africa opted to negotiate with a major global economy without taking into consideration its SADC partners, choosing to “go it alone” instead. This is an interesting scenario as it demonstrates South Africa’s potential to act in isolation – independently from its region. It puts into question South Africa’s need to bring its region along with it to the negotiation table. At the same time, however the tensions that have emerged in the region, among SADC members, about this very position, have been difficult for South Africa to manage. As such this is a scenario of South Africa acting alone highlighting its pursuit of narrow national interests and the resulting repercussions for its regional partners. The primary research question in relation to this instance is the extent to which the SADC region was a constraint or an opportunity for South Africa during these Trade, Development and Cooperation Agreement (TDCA) negotiations. The paper begins with a brief account of the reasons for the selection of this external relations example which is followed by a short description of the economic constraints of South Africa. A detailed synopsis of the main events relating to the South Africa/EU trade negotiations from 1995 to 2008 is then presented, before this process is analysed in relation to objectives and..