South Africa and the post-Bali global trading architecture
Summary
This research paper analyzes the impact of 'mega-regional' trade agreements on the World Trade Organization (WTO) and the strategic position of South Africa. It argues that the rise of agreements like the TPP and TTIP, driven by the needs of global value chains, threatens the WTO's centrality and creates a risk of a multi-bloc trade world. The author suggests that South Africa must recalibrate its trade strategy, move beyond a blocking strategy in the WTO, and utilize regional negotiations to prepare for new global regulatory norms to avoid isolation.
Key insights
- The emergence of 'mega-regional' agreements, specifically the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), is establishing new global norms and regulations on issues such as state-owned enterprises, competition policy, investment, intellectual property, environment, and labour. These initiatives aim to address the regulatory needs of multinational corporations operating global value chains (GVCs) because the WTO has failed to provide such rules.
- There is a risk of a multi-bloc trade world forming outside the WTO, exacerbated by competing initiatives like the Regional Co-operation in Asia and the Pacific (RCEP), which includes China but excludes the U.S.
- The unity of the BRICS nations regarding trade strategy is fragile. While South Africa has often used a blocking strategy in the WTO, China has shown interest in the plurilateral Trade in Services Agreement (TISA) and has considered joining TPP negotiations to support domestic economic reforms.
- South Africa is urged to proactively recalibrate its trade policies to avoid isolation. This includes using the Tripartite Free Trade Area (comprising SADC, EAC, and COMESA) to experiment with new regulatory agendas and proposing its own plurilateral initiatives within the WTO, such as on agriculture, rather than maintaining an oppositionist stance.
Cite the original document
- APA
- South African Institute of International Affairs (2014). South Africa and the post-Bali global trading architecture. https://saiia.org.za/research/south-africa-and-the-post-bali-global-trading-architecture/
- Chicago
- South African Institute of International Affairs. South Africa and the post-Bali global trading architecture. 2014. https://saiia.org.za/research/south-africa-and-the-post-bali-global-trading-architecture/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=South Africa and the post-Bali global trading architecture |date=4 June 2014 |url=https://saiia.org.za/research/south-africa-and-the-post-bali-global-trading-architecture/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2014south, author = {{South African Institute of International Affairs}}, title = {{South Africa and the post-Bali global trading architecture}}, institution = {South African Institute of International Affairs}, year = {2014}, month = jun, url = {https://saiia.org.za/research/south-africa-and-the-post-bali-global-trading-architecture/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated