International Trade Policy and Class Dynamics in South Africa

Table of Contents

1. Frontmatter

2. Chapter 1. Introduction and Theoretical Focus

   Simone Claar

   Abstract

   This chapter presents the analytical and theoretical frameworks used in the book to analyse South African class relations within economic and trade policy, specifically the Economic Partnership Agreement (EPA). It highlights the empirical problem of why the South African government rejected the agreement in 2007 and concluded it in 2016. The main argument is that the South African rejection was based on a short-lived class fraction compromise that eroded over time. The analysis is based on Nikos Poulantzas’ theory of social relations and is strengthened through the references to transnationalisation, North-South relations, a postcolonial perspective and race. Based on this, the chapter introduces the historical materialist policy analysis (HMPA) that provides the foundation of the book structure in the form of a context, actor and process analysis.

3. South Africa’s Political Economy

   1. Frontmatter

   2. Chapter 2. National Context: Contemporary South African Capitalism, the State and Its Policy

      Simone Claar

      Abstract

      This chapter provides an overview of South African capitalism, the state and the national economic and trade policy. Firstly, the key characteristics of South African capitalism are outlined: racial discrimination over the centuries, a special type of colonialism and the accumulation regime known as the minerals–energy complex. Another characteristic is the relation between the state and the business in supporting specific capital classes as well as the current status of the South African economy. Secondly, the chapter provides an overview of policy trends in economic and trade policy like the Growth, Empowerment and Redistribution Programme and the Trade Policy and Strategy Framework. Recent political and economic developments, like the #feesmustfall movement, along with the weakness of the South African economy show the contemporary developments.

   3. Chapter 3. Transnational Context: International Trade Relations

      Simone Claar

      Abstract

      This chapter presents an overview of South Africa’s political and economic engagement in the global and regional multi- and bilateral trade arena. It shows how South Africa interacts in trade and trade-related bodies like the World Trade Organization, BRICS (Brazil, Russia, India, China and South Africa) and within the region. It further investigates trade relations with the European Union. For instance, the Trade, Development and Cooperation Agreement is one crucial element of trade relations between South Africa and the EU. This chapter ends with concluding remarks on the national and transnational context.

4. South Africa’s Class Relations in Economic and Trade Policy

   1. Frontmatter

   2. Chapter 4. South African Capitalist Classes: From Mining to Agriculture

      Simone Claar

      Abstract

      The central focus of this chapter is the South African capitalist classes. They are analysed according to their structural position in South African capitalism, as well as relative to other classes and fractions. It is shown that capitalist fractions like mining capital and all other capital related to the minerals-energy complex are dominant in the South African economy. Besides mining capital, the chapter analyses manufacturing, financial and agricultural capital. It discusses their clashes of capital interests, for example, between the business associations Business Unity South Africa and the Black Business Council.

   3. Chapter 5. South Africa’s Political Elite and Its Political Objectors

      Simone Claar

      Abstract

      The chapter elaborates on the most relevant political parties in the South African relationship of forces. The class fractions of the political elite, mainly the African National Congress and its alliance partners the South Africa Communist Party and the Congress of South African Trade Unions, are differentiated between various fractions like class-based or liberal. In addition, the opposition party, the Democratic Alliance, is analysed and it is evident that it is increasing its political relevance through the elections. All of the identified class fractions are connected to the economic and trade policy.

   4. Chapter 6. South Africa’s Popular Classes

      Simone Claar

      Abstract

      Within this chapter, the South African working class fractions and social movements are identified. The focus is on the structural relations of the workers and their position in society and industrial relations. The umbrella organisations the Congress of South African Trade Unions, the Federation of South African Labour Unions and the National Council of Trade Unions represent the organised workers in trade and economic policy issues. The non-organised, marginalised and poor workers have no voice in the policy arena. Within the sphere of economic and trade policy, some alternatives, like the Democratic Left Front, were built; however, the strong representative in trade policy is the Trade Strategy Group, which is active on a national and transnational scale.

   5. Chapter 7. South Africa’s Economic State Apparatuses

      Simone Claar

      Abstract

      The chapter discusses the different roles of the economic state apparatus and their power in economic and trade policy. The National Treasury, the Presidency and the Department of Trade and Industries were shaped for more than a decade through personal relations. The chapter shows the changes and also the roles of other state apparatuses, like the Department of International Relations and Cooperation. Further arenas of debate are the New Economic Development and Labour Council and the parliament. Besides the state apparatuses, three trade policy think tanks shape the South African trade policy. These are the Trade and Law Centre, the South African Institute of International Affairs and Trade and Industrial Policy Strategies.

5. Reconstructing the Process: South Africa’s Classes and the Economic Partnership Agreement

   1. Frontmatter

   2. Chapter 8. The EU–SADC EPA: Road Map and Conflicts (2006–2010)

      Simone Claar

      Abstract

      This chapter establishes the setting of the Economic Partnership Agreement (EPA) and its concrete regional setting in the South African Development Community. It provides the context of the historical evolution of the EPA, but also outlines the concrete stages of the negotiations and the background. The EPA negotiations have resulted in major conflicts over several trade and development issues as well as diverse positions within the region. The chapter provides insights into the conflict issues within the trade agreement and also within the region. South Africa declined to sign the EPA, while the neighbouring countries agreed on an interim agreement.

   3. Chapter 9. Class Fraction Perspectives on the Conflicting EPA Issues

      Simone Claar

      Abstract

      This chapter draws on the previous class analysis and the identified conflicting EPA issues in the EU–SADC EPA. Central here are the perspectives of the capitalist class fractions, the political elite, the working classes and the economic state apparatuses on the major issues within the arena of trade in goods, trade in services and investment and deep integration. The investigation reveals that there was a class compromise (although it was unspoken) in South Africa which resulted in the rejection of the EPA in this specific case.

   4. Chapter 10. Restart of the EU–SADC EPA Negotiation and Its Outcome

      Simone Claar

      Abstract

      The chapter focuses on the reasons for the restart of the negotiations by the South African government and the final results of the Economic Partnership Agreement. The major reason for continuing was the danger to regional integration projects like the Southern African Customs Union. Another factor was the break-up of the class compromise as agricultural and manufacturing capital pushed for better access to the European market. The final outcome of the agreement solved conflict issues in trade in goods, but new issues like geographical indications were also included. Overall, the chapter demonstrates a class fragmentation of the relationship of forces in the EPA process.

   5. Chapter 11. Conclusion

      Simone Claar

      Abstract

      The concluding chapter brings together the findings of the relationship of forces in economic and trade policy as well as in the EPA process. It summarises and discusses the main findings in the South African classes and the reasons for agreeing on a class compromise only to break with it at a later stage. The chapter contributes to the discussion by using a neo-Poulantzian framework including class categories to work in internal fragmented and emerging economies in the global south. The chapter also discusses policy implications as well as the impact of the current protectionist developments on the future of the deep trade agenda.

6. Erratum to: South Africa’s Political Elite and Its Political Objectors

   Simone Claar

7. Backmatter