In a move to mitigate the trade risks between the UK and South Africa, the Portfolio Committee on Trade and Industry approved the new SACUM-UK Economic Partnership Agreement (EPA) on Thursday. The EPA has since been delivered to the National Assembly for ratification proceedings.
With the UK set to leave the European Union in January, the new stand-alone trade agreement will replace the current SADC-EU Economic Partnership Agreement, governed by the European Union.
According to trade and industry minister, Ebrahim Patel, the SACUM-UK agreement will allow for continuity and an increase of trade between the UK and South Africa.
“The SACUM-UK EPA will replace the current legal framework for trade under the EU SADC EPA if the UK leaves the EU on January 31, 2020.”
It would still be applicable if the UK was granted a Brexit extension, Patel added.
“Key features of the SACUM-UK EPA include rules for trade in goods, preferential tariff rates on all sides, trade remedies, technical standards, health and safety standards, and dispute settlement.”
Over the past six years, trade between South Africa and the UK has nearly doubled, from R56bn to R101bn, while exports from SA to the UK increased from R27bn to R57bn, with nearly 175 000 jobs being supported by the SA-UK export markets.
SACUM-UK consists of the Southern African Customs Union (SACU) Member States, Mozambique and the United Kingdom. The SACU Member States are Botswana, Swaziland, Lesotho, Namibia and South Africa.
