Auska Ovando and Martha Hungwe explain why trade between Global South nations is increasing and why the forces at play cannot be solely those of the market.
South-South trade has experienced significant growth over the past two decades. This often-overlooked development is subtly shifting global trade patterns. These changes are not accidental but result from intentional cooperation among countries in the Global South. There is immense potential within South-South Cooperation waiting to be harnessed.
When considering global trade, the focus nearly always remains on the Global North, on the movement of goods and capital among wealthy, industrialised countries. However, trade within the Global South has expanded significantly and discreetly, altering trade patterns and power dynamics in ways that are often overlooked but warrant serious attention.
By 2023, South-South trade accounted for more than a third of global trade (excluding China), growing faster than North-South trade since the 1990s.
By 2023, South-South trade accounted for more than a third of global trade (excluding China), growing faster than North-South trade since the 1990s. This increase was not accidental. It was driven by liberalisation, the rise of regional and inter-regional trade agreements, and the economic ascent of countries like India, Brazil, and China. Agreements such as SACU–MERCOSUR reflect increasing political interest in expanding intra-Global South trade ties.
Goods traded include commodities, garments, pharmaceuticals, machinery, and electronics. While the statistics are impressive, they only tell part of the story. The more important questions are: who is driving this trade, who benefits, and whether it is reinforcing extractive models or helping to build more just and self-reliant economies?
Countries involved in South-South trade (mainly in Africa, Latin America and the Caribbean, and parts of Asia) face common historical and structural challenges. These include low levels of industrial development, vulnerability to external shocks, and legacies of colonial exploitation. They also encounter practical barriers such as limited access to trade finance, underdeveloped infrastructure, and misaligned regulations.
Currency weakness worsens these issues. Since trade is often carried out in stronger foreign currencies, local industries face price volatility and higher borrowing costs when those currencies appreciate. This weakens economic sovereignty and increases reliance on external systems.
South-South trade has potential as a pathway to greater economic self-reliance.
In this context, South-South trade has potential as a pathway to greater economic self-reliance. When organised around regional production and local value chains, it can help countries diversify beyond raw commodity exports, reduce exposure to foreign exchange shocks, and strengthen domestic manufacturing.
However, this potential is not automatic. If South-South trade continues to depend on exporting raw materials for processing elsewhere or relies heavily on imported inputs, it risks repeating the same patterns of dependency that have long restricted the Global South. Building genuine resilience involves creating regional production systems that meet local needs (from rice to electronics) and prioritising public purpose over profit. Building trade systems that serve people and reduce dependency is not a new idea. South-South trade has its roots in a post-colonial vision of solidarity and economic self-determination. In the aftermath of independence movements across Africa, Asia, and Latin America, leaders gathered in Bandung in 1955 to outline a cooperative approach to development based on mutual support and shared interests, rather than continued dependence on former colonial powers. This vision gained further recognition in 1978 when the United Nations formalised South-South cooperation as a development strategy focused on knowledge exchange, technical cooperation, and collective bargaining in global forums.
Unpacking the conditions for just trade
For South-South trade to reach its full potential, we need to go beyond just export and import figures. The important question is this: under what conditions can trade promote economic justice and human rights?
Political stability is essential. In countries with weak or elite-controlled institutions, trade policy often serves narrow interests instead of the public good. In such contexts, trade acts as a means to concentrate power and wealth rather than promote equitable development.
Inclusive participation in economic life is equally vital. Throughout the Global South, small producers, workers, and women are often excluded from the benefits of trade. This exclusion is not accidental. It mirrors deeper structural inequalities in who controls resources, production, and access to markets. Trade in many sectors is controlled by multinational corporations and domestic elites that extract profits without reinvesting in local economies or providing decent working conditions.
These powerful actors often benefit from tax exemptions and weak regulatory enforcement. They shift profits to tax havens and threaten to divest or sue governments when faced with efforts to regulate or redistribute. Meanwhile, those who create the value (workers in factories and farms, small-scale traders, informal vendors) often endure low wages, precarious conditions, and limited protections.
The importance of infrastructure cannot be ignored. Just trade depends not only on roads and ports, but also on public education, healthcare, childcare, and energy access. These systems enable people to participate in the economy and assert their rights. When they are underfunded or broken, it is women, especially in low-income and rural communities, who are most affected. Women involved in informal or cross-border trade face additional challenges, from limited mobility to a lack of legal protections and financial services.<
trade must be aligned with public purpose — not solely dictated by market forces
This is why trade must be aligned with public purpose — not solely dictated by market forces. Transparent negotiation processes, democratic oversight, and human rights and gender impact assessments are crucial. Robust labour standards, progressive taxation, and social protection systems are necessary to ensure the benefits of trade are shared fairly.
South-South trade originated from a vision of solidarity and economic self-determination. Achieving that vision today demands bold action to challenge deep-rooted power structures, redistribute resources, and ensure trade benefits the many, not just the few — especially those who have long been marginalised from its advantages.
