POLICY RESEARCH REPORT ON OPTIONS FOR SOUTH AFRICAS CULTURAL AND CREATIVE INDUSTRIES IN BILATERAL AND MULTILATERAL TRADE AGREEMENTS

Overview

The South African dispensation regarding foreign policy and international relations derives from the Constitution, which assigns responsibility for this area of government to the President. However, although the President has the power to enter into some agreements relating to the administration, international agreements other than those of a purely technical, administrative or executive nature must be approved by Parliament. Parliament is furthermore required to ratify multinational agreements or approve accession to them. All international agreements, including those which can be entered into without Parliamentary approval, must be tabled before Parliament for information purposes (South African Government, 2020).

The formulation, promotion, execution and daily conduct of South Africa’s foreign policy falls under the responsibility of the Ministry and Department of International Relations and Cooperation (DIRCO). The strategic objectives of DIRCO are:

• To protect and promote South African national interests and values through bilateral and multilateral engagements,
• To manage the country’s international relations and promote foreign policy objectives,
• To monitor and advise government on international developments, foreign policy and related domestic matters,
• To support the formulation of international law and to promote compliance with provisions,
• To promote multilateralism and ensure an orderly system for international engagement,
• To deliver State protocol services.

The overall source of guidance for conduct of international relations is the National Development Plan Vision 2030 (NDP). The plan calls for the positioning of South Africa to facilitate socioeconomic development and to foster strong international ties. This broad aim is given implementable expression through successive Medium Term Strategic Frameworks (MTSFs), with the current edition (as of December 2020) being for the period 2019 to 2024 (DPME, 2020). Priority 7 of the MTSF (“A Better Africa and World”) contains the following interventions which relate to international agreements and export promotion:

• Implementation of AfCFTA and other trade agreements in order to grow intra-Africa trade. Noting that Intra-African exports accounted for 26% of South African exports and 12% of imports in 2018, The MTSF sets a target increase in exports to other African countries of 50%. No target is set for imports, but a goal is set of establishing a framework for trade in services in priority sectors. The MTSF further resolves to eliminate tariffs upon imports from African countries within five years of the finalisation of tariff concessions under the agreement.
• Facilitation of exports through the Export Marketing and Investment Assistance Scheme (EMIA) fund. The MTSF calls for increased and diversified exports to contribute to an export orientated economy, with a target increase of R3 billion per year on top of the R22 billion baseline.
• Contribution to the Implementation of identified African Union Agenda 2063 flagship projects (of which the establishment of the AfCFTA is one).
• Advancement of South Africa’s national interest and safeguarding of the country’s national positions within all international engagements. This intervention further calls for promotion of an equitable rules-based multilateral system for international engagement. The MTSF resolves to establish a National Interest Framework by 2022.
• Promotion of regional and global integration, with peace, security and stability on the continent.
• Ensuring compliance with international protocols and commitments. The MTSF sets a target for the period of 100% compliance with all international protocols and commitments.

The MTSF recognises several challenges facing South Africa in the sphere of international relations, which are noted to have changed rapidly due to globalisation. The framework notes that international agreements are complex and require clearly articulation of foreign policy objectives and establishment of relationships for favourable geo-political impacts. In this context, the Government has found that number of missions and posted personnel not sustainable and that policy uncertainty in this area is affecting the country’s influence, ability to implement policies and agreements, and latitude to improve integration and increase cooperation, particularly in Southern Africa and the wider continent. This uncertainty is in turn said to reduce investor confidence and the incidence of inward direct investment (DPME, 2020).