US Trade Strategy after Cancun: Prospects and Implications for the SACU–US FTA

The report analyzes the shift in US trade policy toward 'aggressive unilateralism' and bilateral FTAs as a means to open foreign markets and pressure the multilateral WTO process. It specifically examines the motivations and challenges surrounding the proposed US-SACU FTA, noting that while it offers an opportunity to lock in market access and build on the African Growth and Opportunity Act (AGOA), it faces hurdles regarding agricultural subsidies, intellectual property rights, and the disparate economic sizes of the partners. The authors warn that the FTA may not be a panacea for development if not coupled with broader structural policies.

• The US trade strategy has shifted toward 'competitive liberalisation', using bilateral and regional FTAs to open key foreign markets and force 'wayward' countries back into the multilateral trade arena.
• The US-SACU FTA is the first of its kind in sub-Saharan Africa and aims to provide the US with guaranteed preferential access to its largest export market in the region, which saw exports of $3.1 billion in 2001 and $2.5 billion in 2002.
• SACU nations seek to use the FTA to build upon the African Growth and Opportunity Act (AGOA) and address its weaknesses, specifically that AGOA is a unilateral initiative that the US can withdraw arbitrarily.
• A significant challenge for SACU is the potential loss of state revenue; the Bank of Namibia has projected a 35% decrease in state revenues over 12 years as a result of FTAs.
• The US is unlikely to address agricultural export subsidies within the FTA, insisting that such issues be handled exclusively within the WTO framework.
• The US seeks to implement intellectual property standards similar to South African law and demands stronger domestic enforcement, which may impact the ability of SACU countries to treat pandemics like HIV/Aids, malaria, and tuberculosis.
• The US intends to use a 'negative list' approach for services market access, whereas SACU prefers a 'positive list' approach, creating a significant point of contention in negotiations.
• The report argues that trade liberalisation is not a panacea for development, citing Mexico's experience with NAFTA where growth masked underlying weaknesses like systemic corruption and a low tax base.
• US trade engagement is increasingly conditional on the support of American national security or foreign policy interests, as evidenced by the rewarding of allies like Australia and Singapore and the exclusion of countries that opposed the Iraq war.

APA

Draper, P., & Soko, M. (2004). US Trade Strategy after Cancun: Prospects and Implications for the SACU–US FTA. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/4-Trade_report_4.pdf

Chicago

Draper, Peter, and Mills Soko. US Trade Strategy after Cancun: Prospects and Implications for the SACU–US FTA. South African Institute of International Affairs, 2004. https://saiia.org.za/wp-content/uploads/2013/06/4-Trade_report_4.pdf.

Wikipedia

{{cite report |last1=Draper |first1=Peter |last2=Soko |first2=Mills |title=US Trade Strategy after Cancun: Prospects and Implications for the SACU–US FTA |publisher=South African Institute of International Affairs |date=May 2004 |url=https://saiia.org.za/wp-content/uploads/2013/06/4-Trade_report_4.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{draper2004trade, author = {Draper, Peter and Soko, Mills}, title = {{US Trade Strategy after Cancun: Prospects and Implications for the SACU–US FTA}}, institution = {South African Institute of International Affairs}, year = {2004}, month = may, url = {https://saiia.org.za/wp-content/uploads/2013/06/4-Trade_report_4.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }