And South Africa's

The impact of the United States (US) and South Africa’s (SA) trade relationship on Botswana, Lesotho, Namibia and Swaziland (BLNS) [1999-2013] Asanda Saule A research report submitted to the Faculty of Humanities, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Arts in International Relations Johannesburg, 2014 ii ABSTRACT This study set out to interrogate the impact of the U.S. - S.A. trade relationship on Botswana, Lesotho, Namibia and Swaziland (BLNS). A qualitative method of study was chosen and the literature review method was used. South Africa’s foreign policy making was analysed and it was found that in 1994, the country, sought international standing and economic growth. As such, it chose foreign policy that met the stringent criteria of Brenton Woods institutions and liberalised markets, privatised and had a stringent tax regime. The country also carved out a niche as an agent for peace on the African continent and a champion of the global South. South Africa’s post-democratic relationship with the United States was analysed and found to have been negatively impacted by the hangover of Cold War politics and the U.S.’s relationship with the apartheid government. The new government also considered Russia and other American enemies like Cuba, Iran and Lybia allies. The South African government never fully trusted the U.S.’s intentions and was wary of agreeing too often with the country for fear of being called a puppet of the U.S. However, the two countries managed to find common ground and continue to trade with each other successfully. The relationship between BLNS and S.A. in SACU was found to be unequal with BLNS still economically and geographically dependent on S.A. This is in spite numerous changes meant to bring about equality in SACU. The study concluded that there was no real impact on BLNS as a result of the relationship between U.S. and S.A.BLNS suffered a negative impact when the European Union and S.A. signed an agreement but they ensured they were not victims of the U.S. – S.A. trade relationship. iii DECLARATION I, Asanda Antoinette Saule, declare that this research report is my own work except as indicated in the references and acknowledgements. It is submitted in partial fulfilment of the requirements for the degree of Master of Arts in the University of the Witwatersrand, Johannesburg. It has not been submitted before for any degree or examination in this or any other university. Asanda Antoinette Saule Signed at …………………………………………………… On the …………………………….. day of ………………………… 20….. iv ACKNOWLEDGEMENTS This thesis would not have been possible without my grandmother, Nomalungelo Saule who supported my education from day one and sadly passed away the week I was interviewed for the scholarship that would allow me to conduct this thesis at Wits University. I would like to thank, my parents Nyameka Saule and Andile Nqini, who have taught me the true value of education throughout my life. Their encouragement in words and actions from my first day of school to this point is much appreciated. I would also like to thank my husband Khutso Ngoasheng. If it wasn’t for your support through the years and at every year of registration and attempting writing the thesis, this thesis would still be incomplete. You were my biggest supporter and best editor, and provided everything required at different points of this study. I would also like to thank my sister Zikhona Saule who provided much needed emotional and physical support and ensured that my daughter Nkhumishe was well taken care of on the days when I disappeared into the study to work on the thesis. I would also like to thank the Department of International Relations and its entire staff, including my supervisor, Oscar van Heerden, for all your patience and support in the many long years it took to finally complete this thesis. I would like to thank every single staff member who provided assistance and support, with special mention for the Head of Department Head, Professor Gilbert Khadiagala, Prof Rod Alence, and Prof Rok Ajulu. Last but not least I would like to thank the South African Institute of International Affairs (SAIIA) and Konrad Adenaur Stiftung (KAS) for providing me a scholarship and research intern opportunity. You afforded me the opportunity to learn about research, international relations and trade agreements. v List of Acronyms ACP - African Caribbean Pacific AGOA -African Growth and Acceleration Programme ANC- African National Congress AU – African Union BLNS - Botswana, Lesotho, Namibia and Swaziland CODESA - Convention for a Democratic South Africa COMESA - Common Market for Eastern and Southern Africa COSATU- Congress of South African Trade Unions DG- Director General DRC- Democratic Republic of the Congo DTI -Department of Trade and Industry EAC- East African Cooperation EDF - European Development Fund EUE - European Union FDI - Foreign Direct Investment FTA - Free Trade Agreement GATT – General Agreement on Tariffs and Trade GEAR - Growth, Employment and Redistribution strategy GED- Growth, Equity and Redistribution IGAD - Inter Governmental Authority on Development vi IMF - International Monetary Fund IOC - Indian Ocean Commission IMF - International Monetary Fund IPE - International Political Economy IR - International Relations NEPAD - New Partnership for Africa’s Development OAU – Organisation of African Unity RDP- Reconstruction and Development Plan RISDP - Regional Indicative Strategic Development Plan RSF – Revenue Sharing Formula SA - South Africa SACU - Southern African Customs Union SADC - Southern African Development Community SITC - Standard International Trade Classification TDCA - Trade Development and Cooperation Agreement TIFA - Trade Development and Investment Framework Agreement US - United States of America WTO - World Trade Organisation vii TABLE OF CONTENTS ABSTRACT ..................................................................................... iii DECLARATION ............................................................................... iv ACKNOWLEDGEMENTS ................................................................. v LIST OF TABLES ............................................................................. x LIST OF FIGURES .......................................................................... xi CHAPTER 1. INTRODUCTION .................................................... 12 1.1 PURPOSE ................................................................................................. 12 1.2 HISTORICAL BACKGROUND ......................................................................... 13 1.2.1 SOUTH AFRICA AND THE UNITED STATES OF AMERICA ........................................... 14 1.3 SOUTH AFRICA AND ITS BLNS NEIGHBOURS ............................................... 17 1.3.1 HISTORICAL CONTEXT .......................................................................................... 17 1.3.2 BOTSWANA AND SOUTH AFRICA ............................................................................ 18 1.3.3 LESOTHO AND SOUTH AFRICA ............................................................................... 18 1.3.4 NAMIBIA AND SOUTH AFRICA ................................................................................ 19 1.3.5 SWAZILAND SOUTH AFRICA .................................................................................. 19 1.3.6 BLNS AND THE US .............................................................................................. 20 1.4 THE MAKING OF SOUTH AFRICA’S POST-APARTHEID FOREIGN POLICY ............ 22 1.5 LIST OF ACRONYMS ................................... ERROR! BOOKMARK NOT DEFINED. 1.6 SUMMARY ................................................................................................ 25 CHAPTER 2. RESEARCH CONTEXT AND APPROACH ........... 26 2.1 INTRODUCTION ......................................................................................... 26 2.2 RESEARCH TOPIC AND RATIONALE ............................................................. 27 2.2.1 PROBLEM STATEMENT .......................................................................................... 29 2.3 RESEARCH APPROACH/DESIGN ................................................................. 30 2.4 RESEARCH METHODOLOGY ....................................................................... 32 2.5 LITERATURE REVIEW METHOD ................................................................... 33 2.6 VALIDITY AND RELIABILITY ......................................................................... 34 2.6.1 VALIDITY .............................................................................................................. 35 2.6.2 RELIABILITY ......................................................................................................... 36 2.7 LIMITATIONS ............................................................................................. 36 CHAPTER 3. Literature Review .................................................. 38 3.1 THEORETICAL FRAMEWORK – NEW REGIONALISM ........................................ 43 viii 3.2 SUMMARY ................................................................................................ 48 CHAPTER 4. UNDERSTANDING UNITED STATES – SOUTH AFRICA RELATIONS ..................................................................... 51 4.1 INTRODUCTION ......................................................................................... 51 4.2 POST-APARTHEID SOUTH AFRICA AND THE UNITED STATES AS

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