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The author highlights a divergence in trade policy between South Africa, which prioritizes the WTO's multilateral system, and the US, which is pursuing far-reaching 'megaregional' agreements like the Trans Pacific Partnership and the Transatlantic Trade and Investment Partnership. This shift poses risks to South African exporters, particularly in the automotive sector, as the US creates reciprocal trade arrangements with other nations. The document suggests that as Agoa faces renewal in 2015, South Africa should move beyond unilateral arrangements toward a more strategic, reciprocal trade relationship with the US.

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  • South Africa's trade policy is centered on a strong multilateral trading system and the Doha Round of WTO negotiations, leading to government resistance against pursuing broad bilateral or regional trade agreements.
  • The United States has pivoted away from resolving WTO deadlocks in favor of 'megaregional' trade agreements, including the Trans Pacific Partnership (involving countries like Australia, Mexico, Chile, and Malaysia) and the Transatlantic Trade and Investment Partnership with the European Union.
  • The US shift toward reciprocal regional agreements could negatively impact South African exporters, specifically those in the automotive industry who export to the US or TPP member countries.
  • Current trade benefits for South Africa under the African Growth and Opportunity Act (Agoa) and the generalised system of preferences are unilateral US arrangements that offer beneficiary countries little control over terms and are subject to periodic Congressional review.
  • With Agoa due for renewal in 2015, the author suggests South Africa should move toward a new level of relationship that provides reciprocal commercial and development benefits rather than relying on unilateral arrangements.

Cite the original document

APA
South African Institute of International Affairs (2013). Time to set SA-US trade on a fresh trajectory. https://saiia.org.za/research/time-to-set-sa-us-trade-on-a-fresh-trajectory/
Chicago
South African Institute of International Affairs. Time to set SA-US trade on a fresh trajectory. 2013. https://saiia.org.za/research/time-to-set-sa-us-trade-on-a-fresh-trajectory/.
Wikipedia
{{cite report |author=South African Institute of International Affairs |title=Time to set SA-US trade on a fresh trajectory |date=25 June 2013 |url=https://saiia.org.za/research/time-to-set-sa-us-trade-on-a-fresh-trajectory/ |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{southafricaninstituteofinternationalaffairs2013time, author = {{South African Institute of International Affairs}}, title = {{Time to set SA-US trade on a fresh trajectory}}, institution = {South African Institute of International Affairs}, year = {2013}, month = jun, url = {https://saiia.org.za/research/time-to-set-sa-us-trade-on-a-fresh-trajectory/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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