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Trade between China and South Africa: Prospects of a Successful SACU-China Free Trade Agreement

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  • Jonathan Munemo

Abstract

China's trade with South Africa has become more important in recent years, and a 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 only 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 MFN trade liberalization should also be undertaken by SACU in order to achieve successful trade integration with China.

Suggested Citation

  • Jonathan Munemo, 2013. "Trade between China and South Africa: Prospects of a Successful SACU-China Free Trade Agreement," African Development Review, African Development Bank, vol. 25(3), pages 303-329.
    • Handle: RePEc:adb:adbadr:2075
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    References listed on IDEAS

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    1. Agata Antkiewicz & John Whalley, 2005. "China's New Regional Trade Agreements," The World Economy, Wiley Blackwell, vol. 28(10), pages 1539-1557, October.
    2. Mohamed Chemingui & Mohamed Bchir, 2010. "The Future of African Trade with China under Alternative Trade Liberalization Schemes," African Development Review, African Development Bank, vol. 22(S1), pages 562-576.
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    5. Paul Brenton & Peter Walkenhorst, 2010. "Impacts of the Rise of China on Developing Country Trade: Evidence from North Africa," African Development Review, African Development Bank, vol. 22(S1), pages 577-586.
    6. Alemayehu Geda & Atnafu Meskel, 2008. "China and India's Growth Surge: Is it a curse or blessing for Africa? The Case of Manufactured Exports," African Development Review, African Development Bank, vol. 20(2), pages 247-272.
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    Cited by:

    1. Selim Inançli & Haman Mahamat Addi, 2019. "Trade Creation and Trade Diversion Effects in the Economic Community of Central African States," African Development Review, African Development Bank, vol. 31(3), pages 307-317, September.
    2. Xiaosong Zheng & Lijun Jia & Jiawen Bao & Jiao Chen, 2018. "A Study of Trade Complementarity between China and the Baltic States and its Development Strategies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(49), pages 788-788, August.

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