South Africa and the post-Bali global trading architecture
Summary
The paper examines the shift in global trade governance from the WTO toward 'mega-regional' agreements like the TPP and TTIP, which establish new norms on issues such as the environment and labour. It warns that South Africa risks investment deflection and isolation if it continues a blocking strategy in the WTO while other BRICS nations, particularly China, consider engaging with these new frameworks. The author recommends that South Africa use regional initiatives like the Tripartite Free Trade Area to experiment with new regulatory agendas and proactively propose plurilateral initiatives within the WTO.
Key insights
- The emergence of 'mega-regional' agreements, specifically the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), is creating new global norms and regulations on issues including the environment, labour, intellectual property, investment, competition policy, and state-owned enterprises.
- Mega-regional agreements are driven by the need to address regulatory requirements for multinational corporations operating global value chains (GVCs), filling a gap left by the WTO's failure to deliver such rules.
- There is a fragmentation within the BRICS bloc regarding trade strategy; 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 debated joining TPP negotiations to support domestic reforms.
- South Africa could mitigate the risk of investment deflection and strengthen its role as a regional economic gateway by using the Tripartite Free Trade Area (comprising SADC, EAC, and COMESA) to experiment with new regulatory agendas.
- To avoid isolation, South Africa should move away from an oppositionist stance and instead propose its own plurilateral initiatives within the WTO, particularly regarding agriculture, and explore the special and differential treatment provisions used in the Trade Facilitation Agreement.
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} }
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