International Trade In The Shifting World Order And Its Impact On South Africa’s Trade Policy

Thought Piece: International Trade In The Shifting World Order And Its Impact On South Africa’s Trade Policy, Dynamics And Its Special Economic Zone Programme.

In today’s globally connected world, no country can thrive in isolation. Despite advancements in technology and increased self-sufficiency, countries continue to rely heavily on international trade to access resources, goods, and services that are either unavailable or produced more efficiently elsewhere. This global interconnectedness is especially significant for South Africa, where economic activity also depends on world trade. As a relatively small and open economy accounting for just 0.53% of the world’s goods trade and 0.28% of global services trade, 60.4% of South Africa’s GDP is linked to international trade in goods and services (South African Reserve Bank, 2021).

Despite this high level of trade integration, the country faces a persistent trade deficit, as import growth consistently outpaces export growth. Recent country policy reforms have been driven by significant events, such as the Covid-19 pandemic, which underscored the urgent need for countries to reassess their trade strategies and strengthen resilience in their supply chains.