Balancing domestic regulation and trade liberalisation under the GATS: universal access issues in South Africa's telecoms sector

The service sector increasingly has become the cornerstone of a great number of economies in both the developed and developing world. The main barrier to trade in services is the imposition of domestic regulations which are aimed at ensuring the affordability, availability and efficiency of services. Such domestic regulations are important for services and the General Agreement on Trade in Services (GATS) consequently recognises the right of countries to regulate in order to achieve these goals. The GATS, however, also seeks to discipline such regulations to ensure that they do not hinder trade in services. This article seeks to assess these seemingly competing interests in the context of South Africa's history and its burgeoning telecommunications sector.     

A strategic view of South African trade policy in relation to the future global trading environment

This paper puts forward a strategic view of what South African trade policy should be doing in relation to the future global trading environment. The future is uncertain, but if the past is prologue, South African trade policy needs to be positioned for a continuation of the commodity cycle, and to exploit markets in emerging economies, including Africa, more fully. Simultaneously, it needs policies to spur labour-intensive services and manufacturing exports, both because these will be needed if commodity markets are less robust and because of their employment-creating potential. South Africa's current strategy, however, is inflexible, heavily focused on domestic concerns and is in danger of placing South African exporters at a disadvantage in accessing the growing emerging economies. It also gives rise to an inherent tension between the interests of South Africa and the African region in trade negotiations. Having as the central tenet of trade policy a commitment to deal with tariffs on a case-by-case basis will not serve South Africa well in the global economy that is likely to emerge over the next 15 years. A simpler tariff structure would facilitate the conclusion of free trade agreements and actually make industrial policy more effective.     

The impact of plurilateral trade agreements on developing countries – to participate or not to participate?

In the wake of the impasse in the Doha Development Round of multilateral trade talks, sector-specific plurilateral trade agreements (PTAs) have been gaining traction. However, PTAs mostly appeal to developed countries, with the uptake among developing countries (including least-developed countries) being very limited. This article investigates the factors contributing to such a phenomenon, whether there is indeed merit in developing countries playing a more active role in PTAs and how they might be encouraged to do so. Both qualitative and quantitative analyses were conducted with specific attention being given to the effects, on a selection of developing countries, of participation in four PTAs: the Trade in Services Agreement, the Government Procurement Agreement, the Environmental Goods Agreement and the Information Technology Agreement II. Among the findings was that although, according to the qualitative analysis, policymakers are generally disinterested in the four PTAs because they are not aligned to the countries’ economic interests or they threaten policy space, the quantitative analysis revealed that gains could often be made from more active participation in these agreements. This clearly points to a research gap and highlights the need for more in-depth analysis of the potential of PTAs in the developing world.     

China in Africa: A relationship of (Un)equals in the developing world

The unveiling of the new Southern African Customs Union (SACU) Agreement in 2002 inaugurated new democratic institutional structures for SACU. The revised SACU Agreement provides for accession by new members. Although not new, the idea of expanding SACU has gained currency in recent years. It has been suggested that enlarging SACU could overcome the ‘spaghetti bowl’ problem of overlapping regional membership of the Southern African Development Community (SADC) countries. In spite of its allure, however, enlarging SACU membership is likely to run into difficulties as negotiations about the common revenue pool and the common external tariff become bogged down by attempts to accommodate the needs and interests of countries at different levels of development. It would also spark debate about how the revenue-sharing formula should be restructured and extended to new members. Moreover, whether SACU can act as a driver of regional integration will depend on the extent to which South Africa, the regional power, can translate its hegemonic position into a leadership role.