South-South Economic Co-operation: The India-Brazil-South Africa Case

This 2006 report by the South African Institute of International Affairs examines the economic relationships between India, Brazil, and South Africa. Based on interviews with 30 South African companies and government officials, it identifies significant non-tariff barriers, high business costs, and a lack of awareness among the private sector regarding the IBSA initiative. While it notes growth in bilateral trade—such as the 2004 SACU-Mercosur preferential trade agreement—it highlights that many South African firms perceive IBSA as a political rather than an economic project. The report recommends reducing customs duties, improving infrastructure, and involving the business sector more deeply in the formulation of trade agreements.

• South African businesses show a significant lack of awareness regarding the IBSA trilateral forum, with 20 out of 30 surveyed respondents stating they did not know what IBSA stood for or its purpose.
• There is a strong perception among some companies that the IBSA initiative is driven by political collaboration rather than economic gain, leading to skepticism about its ability to produce tangible results.
• Trade with Brazil is hampered by high tariffs on finished goods, a non-transparent customs regime, and a restrictive import licensing system for products such as textiles and pharmaceuticals.
• Trade with India is constrained by some of the highest tariff levels in the world, time-consuming customs documentation, and a restrictive foreign investment regime in certain sectors.
• South African firms perceive India as a more attractive commercial environment than Brazil due to cultural affinity, the shared use of English, and similar legal systems based on British law.
• Logistical and infrastructure bottlenecks are major trade facilitation problems, with transport costs constituting 14.6% of South Africa's GDP.
• Bilateral trade between South Africa and India remained low as of 2002, growing only 1.334% over the previous decade to reach $700 million.
• Trade between South Africa and Brazil grew by 268% from 1994 to 2002, reaching $660 million, with a significant portion of exports consisting of mineral products, chemicals, and base metals.

APA

Soko, M. (2006). South-South Economic Co-operation: The India-Brazil-South Africa Case. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/12Trade-Report-No-12_final.pdf

Chicago

Soko, Mills. South-South Economic Co-operation: The India-Brazil-South Africa Case. South African Institute of International Affairs, 2006. https://saiia.org.za/wp-content/uploads/2013/06/12Trade-Report-No-12_final.pdf.

Wikipedia

{{cite report |last1=Soko |first1=Mills |title=South-South Economic Co-operation: The India-Brazil-South Africa Case |publisher=South African Institute of International Affairs |date=May 2006 |url=https://saiia.org.za/wp-content/uploads/2013/06/12Trade-Report-No-12_final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{soko2006southsouth, author = {Soko, Mills}, title = {{South-South Economic Co-operation: The India-Brazil-South Africa Case}}, institution = {South African Institute of International Affairs}, year = {2006}, month = may, url = {https://saiia.org.za/wp-content/uploads/2013/06/12Trade-Report-No-12_final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }