South Africa has been pushing for free trade agreements in recent years in a bid to increase trade and boost economic growth. The country is currently a member of a number of free trade agreements, including the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA) and the South African Customs Union (SACU).
In 2018, South Africa signed the African Continental Free Trade Agreement (AfCFTA), a landmark agreement that aims to create a single market for goods and services on the continent. The agreement is set to boost intra-African trade, which currently accounts for only 15% of the continent`s total trade. This agreement will enable South African companies to access a market of more than 1.2 billion people across the continent, making it the largest free trade area in the world.
The agreement has already been ratified by 27 African countries, including South Africa, and is set to come into force by July 2020. The agreement will help to reduce tariffs and other trade barriers, making it easier for South African businesses to compete on the continent.
However, South Africa`s free trade agreements have not been without controversy. The country`s membership of the SADC, COMESA and SACU has been criticized by some who claim that these agreements are hindering South Africa`s ability to negotiate free trade agreements with other countries outside of Africa. This is because member countries of these agreements operate a common external tariff, which can make it difficult for South Africa to negotiate different trade terms with other countries.
Despite this, South Africa has been pushing for other free trade agreements outside of Africa. In 2018, the country signed a trade agreement with the European Union, which will see the removal of tariffs on 98% of goods traded between the two regions. This agreement is expected to boost bilateral trade between South Africa and the European Union, which is currently worth around 166 billion euros annually.
In conclusion, South Africa`s free trade agreements are an important part of the country`s economic strategy. While there have been challenges in negotiating these agreements, the benefits of increased trade and economic growth make them a worthwhile pursuit for the country. The signing of the AfCFTA and the trade agreement with the European Union are important steps towards improving South Africa`s trade relations with other countries, and are likely to have a positive impact on the country`s economy in the coming years.