Trade Profile: South Africa Prioritizes Populism at the Cost of Competitiveness

Historically, South Africa has been indifferent to global trade. Because raw commodities, the mainstay of its export activity, are generally not subject to protection by other states, South Africa has had little incentive to aggressively negotiate global trade deals. It typically relied instead on the General Agreement on Tariffs and Trade, and later the World Trade Organization, to govern its international dealings, while focusing most of its attention on regional commerce. Given its long-standing advantages relative to the rest of southern Africa in sectors such as manufacturing and services, South Africa's emphasis on regional trade has helped it dominate its neighbors economically. But its wealth of natural resources and comparatively diverse industries notwithstanding, the country's politics have frequently hindered its competitiveness abroad....