An examination of the United States of America-South Africa economic relations: mutually beneficial or not? 2010-2020

Abstract

This paper examines the economic relationship between the United States and South Africa from 2010 to 2020, focusing on whether these interactions are mutually beneficial.        Utilizing a Marxist political economic framework, this paper argues that AGOA has facilitated increased trade and investment. These benefits have largely favored US interests, reinforcing structural inequalities within South Africa’s economy and creating a persistent cycle of dependency. The relationship is asymmetrical and exploitative rather than mutually beneficial, characterized by the exploitation of cheap labor, limited regulation of US corporations and barriers to entry for smaller South African producers. Additionally, liberalization policies under AGOA have undermined South Africa’s domestic industries, while US strategically uses trade agreements as tools of political influence in Africa, compromising South Africa’s policy sovereignty. Through qualitative analysis and case studies, this study highlights significant challenges including geopolitical tensions and economic dependency, recommending policies that promote equitable development and address the exploitative nature of these economic ties. Ultimately, this investigation contributes to a deeper understanding of the complexities and power dynamics in international economic relations affecting developing countries within the global capitalist system.

Keywords: {'name': 'United States, South Africa, Economic relations, Trade, Investment, African Growth'}

Authors & affiliations

Hlubelihle Makhanda
North-West University

Makhura Rapanyane
North-West University

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