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Significance

By allowing the bilateral dispute to degenerate while delaying assistance to the steel industry, which is under pressure from Chinese imports, Pretoria reveals that it has neither a clear concept of 'national interest' nor capacity to negotiate effectively.

Impacts

The severe regional drought will turn the usual maize surplus to deficit and force the government to hike imports.

Strict EU requirements for South African farmers to conduct additional safety checks on citrus fruit exports will add to farmers' costs.

Auto exports to Africa will slump due to cooling demand linked to lower GDP growth -- 3.7% for 2015, from 4.5% forecast in April.

Progress on reforming the regional customs union, through which South Africa effectively subsidises its neighbours, will be slow.

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