Reciprocity in trade relations between South Africa and Europe

This article sets out the arguments, from South Africa's perspective, for a free trade agreement (FTA) with Europe. It argues against signing the Lome Convention. These arguments have more force if the right kind of FTA can be negotiated, because the greater the benefit South Africa derives from such an agreement, the more the credibility of domestic economic policies will be enhanced. Some requirements for the ‘right’ type of FTA are discussed.

Notes

Respectively Research Officer, Centre for the Study of African Economies, University of Oxford and Professor, Department of Economics and Gencor Centre for Regional Development, Potchefstroom University. We are grateful to Paul Collier from Oxford, Charles Harvey and Chris Stevens from the Institute for Development Studies at the University of Sussex, John Whalley from Warwick University, numerous participants at conferences in Switzerland and South Africa, and two referees for their helpful comments and insights.