Trade Relations between the European Union and South Africa

Abstract

The European Union’s Common Agricultural Policy, often used as a shield of protection against foreign markets, has led to huge trade distortions in developing countries. Due to international pres¬sure, the global trading giant has had to reform its internal policy measures to ensure a level playing field for all parties concerned. However, huge disparities still exist. South Africa, the African conti¬nent’s largest economy, recently entered into a trade agreement with the European Union. The aim was to establish a free trade area over a 12-year period. The South African trade sector, largely unsupported by its government due to inadequate financial resources and policy in-frastructure, now stands to compete with the European trading giant; a trading giant whose internal protectionist measures are the key to its internal market’s survival and global superpower status.