South Africa Bilateral Trade Agreements

Nearly 90% of South Africa`s exports to the rest of Africa go to SADC economies. In 2018, South Africa exported and imported $25 billion and $11.5 billion in goods to the rest of Africa. Intra-African exports account for 26% of total exports and 12% of South Africa`s total imports for 2018. South African exports to the rest of Africa are mainly value-added goods. With regard to South Africa`s overall trade (exports – imports) with the rest of the continent, Namibia (13%), Botswana (12%), Nigeria (12%) Mozambique (12%) Are South Africa`s main trading partners. [8] Since the end of apartheid, foreign trade in South Africa has increased following the lifting of several sanctions and boycotts imposed to end apartheid. Under the CDAA EPA, the EU has eliminated all or part of tariffs on 98.7% of imports from South Africa, while guaranteeing unrestricted access to other signatory countries. Today, the EU is South Africa`s main trading and investment partner. South Africa alone has a bilateral free trade agreement with SADC (Southern Africa Development Cooperation). There are also preferential agreements with Malawi, Zimbabwe and Croatia, as well as a non-reciprocal trade agreement with Mozambique. It is currently considering other bilateral agreements with Kenya, Nigeria, China, Japan, Singapore, South Korea and India. At the end of 2011, it rejected a proposal for a free trade agreement put forward by Turkey, which would lead to destructive competition that would undermine South Africa`s industrial and employment objectives. During apartheid, South Africa`s foreign trade and investment were hit by sanctions and boycotts from other countries that were ideologically opposed to apartheid.

In 1970, the UN Security Council adopted Resolution 282 imposing a voluntary arms embargo against South Africa, which was extended by subsequent resolutions 418 and 591, which declared the embargo mandatory. In 1978, in South Africa, loans were banned by the U.S. Export-Import Bank, followed in 1983 by a ban on IMF lending. In 1983, OPEC imposed an oil embargo, which was strengthened by Iran in 1979. It describes the bilateral and multilateral trade agreements to which that country belongs, including with the United States. Includes websites and other resources that allow U.S. companies to get more information about how they can use these agreements. DTI uses strong relationships between governments and mechanisms to promote a development agenda in Africa focused on identifying and implementing joint investment projects in partner countries; Promote trade between the two parties; coordination of technical cooperation and South Africa`s support for political and institutional development in partner countries; promote the development of cross-border infrastructure, particularly on the basis of the SDI methodology; promote regional integration by strengthening and consolidating the South African Customs Union (SACU) free trade agreement and the Southern African Development Community (SADC) Free Trade Agreement; and negotiate investment protection and economic cooperation agreements.

Author: Franck Pertegas

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