Unpacking South Africa’s trade priorities under GNU

South Africa's Ministry of Trade, Industry, and Competition is undergoing a significant transition as the ruling African National Congress and the Democratic Alliance, the country's second-largest party, come together in a government of national unity. The departure of the long-serving Minister Ebrahim Patel has opened up discussions on what changes and priorities need to be considered in the country's trade landscape. Trudi Hartzenberg, the Executive Director of Trade Law Centre, shares insights on the necessary shifts and focus areas for South Africa as it navigates this new political terrain. Addressing the need for a revised trade policy strategy, Hartzenberg emphasizes the importance of updating South Africa's trade priorities. The existing trade policy dates back to 2010, with revisions in 2012 and a trade policy statement in recent years. However, she notes that significant changes have occurred in the global trade environment since then, warranting a comprehensive review and the development of a new strategy that encompasses trade in goods, services, digital trade, and the intricate linkages between trade and industrial policy. One of the foundational elements of South Africa's trade policy is enhancing export performance and bolstering import strategies. Hartzenberg highlights the significance of smart importing, as imports play a crucial role in the country's production processes by supplying inputs and intermediates essential for industrial development. With a focus on strategic trade partnerships, South Africa is in the final stages of negotiating the African Continental Free Trade Area (AfCFTA). Hartzenberg stresses the need for effective implementation of the agreement and preparing the private sector to leverage the new opportunities offered by the AfCFTA, extending beyond regional trade to global partnerships. In light of the evolving global economy and geopolitical landscape, South Africa must adapt to emerging trade patterns and industrial reconfigurations. The country faces shifting trade routes, new relationships, and regional industrial realignments impacting global trade dynamics. Hartzenberg underscores the importance of securing trust, reliability, certainty, and predictability in economic relationships amidst these complex changes. With a focus on competition policy, Hartzenberg acknowledges the previous minister's efforts in addressing the concentrated nature of South Africa's private sector. She notes the Democratic Alliance's inclination towards market-oriented policies and emphasizes the need for a balanced approach that considers competition interventions in the public interest, job creation, and addressing anti-competitive practices. Highlighting the dynamic developments in digital trade, Hartzenberg points out the regulatory challenges posed by advancements in e-commerce and digital platforms, requiring closer scrutiny by competition authorities. While the discussion with Hartzenberg touches on critical aspects of South Africa's trade priorities, complexities around black economic empowerment and empowerment laws remain essential topics for future exploration. The evolving trade landscape, coupled with the intersection of trade, industrial policy, and competition dynamics, presents a multifaceted challenge for South Africa's new government of national unity as it forges a path forward in the global trade arena.