South Africa should focus on boosting trade, not only among dominant emerging economies, but also within the rest of Africa and other developing countries, as it sought to diversify export markets.

This came as trade experts gathered at the second South African Institute of International Affairs trade reform dialogue in Cape Town on Tuesday were discussing how South Africa should position its trade policy in the wake of the global financial crisis.

The crisis has drawn attention to the need for South Africa to diversify its export markets, with emphasis on shifting from western economies like the US and the European Union (EU), to emerging economies such as Brazil, Russia, India, and China - known as the Bric countries.

President Jacob Zuma has made State visits to each of the Bric countries since his appointment, with a view to strengthening ties with these emerging economies, which have weathered the crisis better when compared with developed countries.

South Africa has indicated its desire to become a part of the Bric grouping.

However, questions have been raised as to what the purpose and benefits of this would be, and being considered a part of this grouping should not be an end in itself.

While developing relations with these countries was important, Cape Town Graduate School professor Mills Soko said that South Africa should not be "obsessed" with becoming a Bric member.

Soko pointed out that markets in the rest of Africa, the Middle East, and other Latin American countries should not be neglected.

He emphasised that the Bric grouping was not in fact an organisation, but the construct of an economist, and did not have a broader group strategy, or clear objectives.

"We cannot engage in an ill-defined ad hoc manner," said Soko, emphasising that South Africa should understand the trade policies of the Bric countries and how these would affect South Africa, and what competitive pressures these would apply, as well as the production and supply chain pressures.

He stressed that South Africa must define a strategic paradigm rooted in its own specific domestic situation and needs, and should avoid copying strategies of other countries.

While Bric countries represented markets for South African goods, they were also competitors in sectors such as steel, clothing and textiles and the automotive industry.

Engagement with the Bric countries must be strategic, reiterated Soko, who called for pragmatism over ideology.

He said that many of the acronyms and groupings such as the Group of Twenty, lacked substance, and were merely forums.

"South Africa must identify what it wants. It is a fragile economy that cannot do everything. South Africa must define what it can do, and define this clear strategic intent," said Soko.

GREATER PUBLIC AND PRIVATE SECTOR ENGAGEMENT

Soko also highlighted that South African government and policy-makers should engage more with the private sector, because business often did not know what the South African government sought to achieve, particularly in Africa.

"Business should be deeply involved in these discussions [on trade policy], and they aren't. They would bring experience rather than theory, and we desperately need a national consensus on where South Africa is going," said African National Congress Member of Parliament Ben Turok.

Wesgro CEO Nils Flaatten highlighted that South African exporters have had problems trying to export to Brazil, India and China, and should perhaps increase focus on African markets, which were showing growth.

European Centre for International Political Economy director Dr Razeen Sally said that there was little chance of South Africa becoming a Bric, as the country was considered a third-tier emerging economy, while China, Brazil and India were considered second-tier emerging economies.

When one considered South Africa's population and market size, as well as issues such as unemployment and inequality, and its poor track record with education, South Africa was a very different economy.

About 15% of South African exports were destined for African markets, while some 40% of exports went to the EU in 2008.