<P style="MARGIN: 0in 0in 0pt">Coming at an important moment in the development of Southern Africa's trade policy, this study looks at the country's shifting economic priorities and assesses the impact of their decisions on other countries in the region. Currently, South Africa has trade agreements with Botswana, Lesotho, Namibia and Swaziland?as well the European Union and the World Trade Organization?all dictated by often-erratic trade negotiations. This analysis predicts that South Africa's new commitment to openness and prosperity will strengthen their leadership in these unions, but there are still hurdles having to do with industrial production and the need for a unilateral trade policy.</P>