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Regional Integration in the Global South pp 179–207Cite as

Palgrave Macmillan

SADC

Extra-Regional Trade Relations Constrain Deeper Market Integration

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Part of the book series: International Political Economy Series ((IPES))

Abstract

The economic structure of SADC is even more extreme than that of MERCOSUR. SADC’s trade network shows low importance of intraregional trade, a very high dependence on extra-regional trade, and a huge economic asymmetry between the dominant regional power South Africa and the rest of the region. The market of the regional power is a significant addressee of the smaller member states’ exports, but the regional neighbourhood is not able to absorb the exports of South Africa, which mainly trades with the EU.

Firstly, the regional power South Africa had an interest in pushing the SADC free trade area (SADC-FTA). Even if intraregional trade is not of major importance for the South African economy in general, it is nevertheless important for the manufacturing sector, which is competitive within the region, but not globally. The establishment of a free trade area does not conflict with existing extra-regional trade agreements, because it does not require the harmonisation of the external trade regimes. Thus, South Africa provided regional leadership in the negotiations for the free trade area without endangering its extra-regional interests. But, secondly, South Africa’s regional leadership was missing in case of the customs union, which SADC planned to implement in 2010. Since the turn of the millennium, South Africa enjoys the Trade, Development and Cooperation Agreement with the EU, and this bilateral trade agreement stands in conflict with the harmonisation of SADC’s external tariffs. Besides, SADC’s member states participate in different negotiation groups for Economic Partnership Agreements and some enjoy the privileges of the EU’s everything-but-arms initiative. Thus, SADC’s external trade regime is highly fragmented. This prevented the setup of a customs union, as the member states, including South Africa, privileged their extra-regional trade relations.

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Authors and Affiliations

  1. Department of Political Science/International Relations, Johannes Gutenberg-University of Mainz, Mainz, Germany

    Johannes Muntschick

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  1. University of Amsterdam, Amsterdam, The Netherlands

    Sebastian Krapohl

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Muntschick, J. (2017). SADC. In: Krapohl, S. (eds) Regional Integration in the Global South. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-38895-3_7

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