New Era

Brexit set to change SA’s bilateral economic relationship with the UK.

- Keith Campbell

Last month, during the debate regarding the 2017 State of the Nation address in Parliament, in Cape Town, Trade and Industry Minister Dr Rob Davies highlighted: “[A]s the UK government prepares to trigger exit negotiations from the EU (European Union), we need to prepare for a new trade arrangement with the UK. We have been engaged with the UK government and reached an in-principle understanding that there will be no damage to existing trade and investment relations that must be preserved. We also agree that the legal commitments under the EPA (Economic Partnership Agreement) with the EU, including the UK, will continue to be the basis for our bilateral trade in the immediate future and that those commitments would be carried over into any new arrangement in future. We will have to pay particular attention to questions of how quotas, notably on agricultural products will be dealt with to avoid any damage to current trade.”

On January 24, Davies held talks in London with the UK’s Secretary of State for International Trade, Dr Liam Fox. According to the official statement released by the UK Department of International Trade (DIT), the two Ministers discussed the current bilateral trade links and the opportunities to increase these and both affirmed their commitment to work together to augment these relationships and identify and develop trade and investment opportunities that would benefit not only both countries but also Southern Africa and Africa.

“The UK is a historical and strategic trade and investment partner for South Africa and remains a key market especially for agriculture exports accounting for over 20% of South Africa’s exports of wine and 30% of fruit exports globally,” pointed out Davies in his official statement after the meeting.