What International Trade Agreement Exists Between South Africa And India

In short, South Africa does not need another agreement that has no commercial value. There is an urgent need for both governments to be realistic about the challenges and barriers to a beneficial trade agreement and to address them directly in order to remove the trade barriers that these challenges create. It is therefore very plausible that the candidate lists of India and South Africa tell a long and sensitive story about sectors that both countries ultimately do not want and cannot liberalize. Countries are also on positive lists, where only the products listed are liberalized and everything else is taboo. The nature of a preferential trade agreement dictates that trade openness will be much more limited than if countries were to conclude a free trade agreement. Such state visits, when used effectively, can increase trade by improving market understanding, helping to identify new business opportunities, and providing a networking platform. The two countries have set an ambitious target of $15 billion (R121 billion) in bilateral trade per year by 2014 and are negotiating a preferential trade agreement (EPA). The investment in infrastructure development and an increased level of exchange demanded by Zuma can be facilitated by the PTA if designed effectively. At this point, it should be noted that South Africa is negotiating this trade agreement within the framework of the Five-Member South African Customs Union (Sacu). This leads to a different complexity. While it can be argued that the real players in these negotiations are only South Africa and India, the other SACU members have interests in the negotiations that are not necessarily compatible with those of their large neighbour.

They would be interested in having access to competitive imports from India and would have other concerns when it comes to protecting domestic industry. A tariff comparison between the two countries will also show that while South Africa`s tariffs are generally low, India has significantly higher tariffs and South Africa will benefit if the trade deal were to lead to a reduction in those tariffs. There are signs that India is interested in a comprehensive trade agreement that covers both trade in goods and trade in services. South Africa would do well to reconsider its position in this regard, especially since there are sectors where South Africa would have a competitive advantage over India and would benefit from the liberalization of these sectors. .

Responses are currently closed, but you can trackback from your own site.

Comments are closed.

Subscribe to RSS Feed Follow me on Twitter!