South African trade hegemony: Is the South Africa–EU Trade, Development and Cooperation Agreement heading for a BRICS wall?

Abstract

South African dominance of trade in Africa as well as its position as a regional hegemon was entrenched by the Trade, Development and Cooperation Agreement (TDCA) with the European Union in 1999. South Africa's full-blown integration into the BRICS (Brazil, Russia, India, China, South Africa) formation since 2011 has brought new dynamics, however, as South Africa now has a marked BRICS orientation. Although the European Union (EU) as a bloc is still South Africa's largest trading partner, China has become South Africa's largest single-country trading partner. The question arises as to whether this new found loyalty makes sense in terms of South Africa's regional position and its trade prospects. Against the background of more intra-industry trade with the EU and the new and growing inter-industry trade with the other BRICS economies, South Africa's trade share of African trade has been in relative decline. This study uses an international political economy framework to analyse South African trade hegemony based on the TDCA and the possible effects of a shift towards BRICS. The conclusion is that, although the shift towards BRICS can politically be justified, economically it should not be at the expense of the benefits of the more advantageous relationship with the EU.