Should South Africa be concerned about Brexit?
The world is a turbulent place; ripples from ‘events’ in one country can have destabilising effects on other countries and people. The decision by the UK to leave the EU (‘Brexit’) is a case in point. The shock-waves are likely to extend well beyond the British Isles. But is it something that South Africans should worry about in advance?
The 2nd annual Number 43 business roundtable
The 2nd Annual Number 43. Business Roundtable was held in Swaziland on 21 June 2015. This Roundtable event forms part of the annual celebrations recognising the contribution made by the Number 43. Trelawney Park household in the fight against Apartheid. Given the recognition of cross-border support to this cause, regional integration forms the core theme of the Roundtable discussion. This year, the Roundtable welcomed the South African Reserve Bank Governor, Mr. Lesetja Kganyago, as the event’s “Chief Instigator”. The resulting discussion was robust and serves to highlight some of the key constraints and opportunities to regional integration in SADC.
Humbled by the data
Roman Grynberg’s most recent diatribe in the Mail and Guardian demands a response. His main point seems to be that South Africa depends on its exports to Botswana, Lesotho, Namibia and Swaziland (BLNS) to fund its trade deficit with the rest of the world and for this reason it is prepared to go to extreme lengths to hide its trade data and pay-off the BLNS through the SACU revenue sharing agreement.
Making SACU work for trade
One of the fundamental reasons for the creation of a customs union is to facilitate intra-union trade, specifically through the removal of border controls on goods between member countries. The removal of border posts not only facilitates trade but can catalyse the development of regional value chains and unlock new industries as the costs of transport and logistics fall.
Identifying the offensive interests of African countries in services negotiations
As tariffs on goods become less onerous, trade negotiators have shifted their attention to the services sector, where international trade is growing rapidly and barriers to trade are much more complex. Whereas the interests of developed countries in services negotiations are usually substantive and clear, it has been much more difficult to identify how developing and least developed countries (LDCs) might benefit from a more open services environment.
Ten truths about tariffs
One of the consequences of the global financial crisis and the resulting slowdown in economic growth has been a rise in protectionism. Prospects for export-led growth have diminished and countries are desperately looking to safeguard what they have left. Import duties, which seemed destined for the WTO waste-bin five years ago, are once again emerging as a policy option of choice.
Grappling with the revised BBBEE codes of good practice
On 5 October 2012 the Minister of Trade and Industry issued revised Broad-Based Black Economic Empowerment Codes of Good Practice for public comment. Much has been written on the impact of these codes for charities and the DTI has already responded on this specific issue. But these revisions could have much wider economic effects and these too need to be understood before these changes are implemented. DNA Economics has identified some potential challenges with the revised codes and has written to the Minister in this regard.
SAA and Qantas – sharing the pain
South African Airways has applied to the Competition Commission for permission to have its long-standing codeshare agreement with Qantas extended for a further three years. In terms of this codeshare, SAA and Qantas have carved up the routes between South Africa and Australia between themselves – with SAA flying to Perth and Qantas to Sidney – thereby circumventing the need to compete with each other. No other airline flies directly between the two countries.
The myth of South Africa’s manufactured exports
It has become accepted wisdom and the mantra of politicians and economists alike that South Africa exports truck-loads of manufactured goods to the rest of the continent. From Government Ministers (including those responsible for trade), the National Planning Commission as well as the research units of South Africa’s leading Banks, we learn that Africa accounts for a large and rapidly rising chunk of our value-added exports. But has anyone actually done the maths?
Tripartite FTA: does it make economic sense?
Heads of state from COMESA, the EAC and SADC met on 12 June 2011 to launch a substantive programme to harmonize the trade arrangements amongst the three regional economic communities (RECs), with a view to establishing a single Free Trade Area (FTA) encompassing all member states by 2013.