CHALLENGES
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South Africa, Africa’s largest regional economic power, is a natural FTA
partner sought by Asian countries. All major Asian countries are seeking FTAs with South Africa or with the Southern African Customs Union (SACU), of which South Africa is a member. However, the responses of South African domestic industries to some FTAs are mixed. South African mining companies welcome an FTA with China in anticipation of a future
increase in exports to China, but local textile and clothing firms largely oppose the FTA, fearing losses due to their inferior competitiveness. While the fear of the South African textile and clothing industry is understandable, due to its currently high tariff of 20 to 40
percent on tex-TABLE 3.13
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