Trade between China and South Africa: prospects of a successful SACU-China free trade agreement

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Periodical article

Title:	Trade between China and South Africa: prospects of a successful SACU-China free trade agreement
Author:	Munemo, Jonathan
Year:	2013
Periodical:	African Development Review (ISSN 1467-8268)
Volume:	25
Issue:	3
Pages:	303-329
Language:	English
Geographic terms:	Southern Africa South Africa China
Subjects:	international trade SACU trade agreements
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2013.12031.x/pdf
Abstract:	China's trade with South Africa has become more important in recent years, and a Southern African Customs Union (SACU)-China free trade agreement has been proposed to further strengthen this trade relationship. This paper examines the relevance of this proposed trade policy for further enhancing bilateral trade flows and development in SACU. The paper finds that tariff liberalization alone is inadequate for successful trade integration, as it benefits mostly South Africa and harms some of SACU's internal and external trade and its welfare through trade diversion. Measures to improve trade complementarity, reduce barriers to intra-industry trade, and implement parallel most favoured nation (MFN) trade liberalization should also be undertaken by SACU in order to achieve successful trade integration with China. Bibliogr., notes, sum. [Journal abstract]