Paper short abstract:

The paper addresses the transformation of SACU after the 2002 reform by analysing its external trade negotiations, in particular the trade agreement with MERCOSUR.

Paper long abstract:

In 2002, the Southern African Customs Union (SACU) underwent an institutional reform that was supposed to transform its neo-colonial set-up into a more balanced process reflecting the transition in South Africa.

For decades, the organisation had been an instrument for Apartheid South Africa to prevent isolation and to control its neighbours. The main tool was to administrate the common customs revenues and finance a lion's share of the smaller members' public budgets.

Central bodies such as the secretariat in Namibia were created and staffed with technocrats. In addition, the decision-making processes should include all member states instead of being unilateral

Formally, SACU ceased to be a body administrated by the South African government. However, in order to understand how the organisation has actually transformed, its underlying logic and structure need to be addressed.

This paper will address the issue of trade negotiations with third parties. Before 2002, South Africa was engaging in individual agreements such as with the EU in 1999 despite the considerable effects on a grouping as a whole determined. After the reform all negotiations had to be conducted as a group.

The negotiations with MERCOSUR (Common Market of the South) had already been initiated before the reform and carried on under the new set-up on until a conclusion in 2009. An in-depth analysis will address the question of whether the hegemonic practices remained in place under the formally consensual umbrella.