The relevance of European Union–South African trade and the TDCA from a perspective of South Africa's agricultural exports between 1997 and 2008

The European Union (EU) has remained South Africa's biggest trading partner, with total exports destined for the Union constituting about 30 per cent of South Africa's total exports in the last ten years. However, owing to recent developments, new market opportunities, especially in the developing world, have emerged, with countries like China capturing some of South Africa's total exports. Analysts like Sandrey and Jensen (2007) have argued that such developments signal a significant change in the relevance of the EU as South Africa's main trading partner. This paper, however, argues that, even with the rise of emerging markets, South Africa still needs to take the EU seriously and remain strategic in its relationship with the Union. Even though total export flows to countries like China have risen exponentially since 2005, they still constituted only about 5 per cent of South Africa's total exports in all other sectors in 2008. More specifically, agricultural export data shows that, since 1997, EU-destined exports in the sector have been growing at a rate above that of agricultural exports to the world. The trends could imply that the ongoing implementation process of the Trade, Development and Cooperation Agreement (TDCA) between the EU and South Africa remains relevant for economic growth and probably for poverty alleviation as well.