The Minister of Trade and Industry (the DTI),
Dr Rob Davies had a bilateral meeting with his
United-Kingdom counterpart in London on Tuesday 17
April 2018. In the margins of the Commonwealth Heads of
Government Meeting they discussed the trading relationship
between the UK and South Africa. The ministers were pleased
with the strength of the UK-South Africa trade and
investment relationship.
As the UK is in the process of exiting the European Union
(EU), South Africa welcomed the UK’s intention to avoid any
disruption to trade. In particular, both ministers welcomed
the significant progress made so far in discussions with
the Southern African Customs Union (SACU which
includes Botswana, Lesotho, Namibia, South Africa, and
Swaziland) and Mozambique. These are to ensure continuity
of the EU-SADC Economic Partnership Agreement (EPA) as the UK
leaves the EU.
Both parties welcomed the agreement reached between the EU
and UK at the March European Council that the UK is to be
treated as a Member State for the purposes of international
agreements during the EU-UK Implementation Period (1 April
2019 to 31 December 2020). This provides further certainty
that there will not be disruption to the existing trading
relationship during the implementation period.
International Trade Secretary said:
Free trade has transformed developing economies across
the world, and 44 of our 52 Commonwealth partners,
including South Africa, benefit from development-focused
preferential trade access to the UK market. That’s why
it’s important to ensure continuity and certainty in our
current trade arrangements as we leave the EU, and UK
officials with their counterparts across Southern Africa
have made excellent progress in this.
As we leave the EU and create a new independent UK trade
policy, we will build further on our £9 billion of annual
trade with South Africa, our biggest trading partner in
Africa, and champion free trade to help developing
countries combat poverty and grow their economies.
Minister Davies, said that the UK remains an important
strategic partner for South Africa globally. South Africa
and the UK have enjoyed mutually beneficial preferential
trade since entry into force of the first reciprocal trade
agreement between South Africa and the EU in January 2000.
Minister for Trade and Industry, Dr Rob Davies said:
The UK is South Africa’s second largest trading partner
in the EU Region. Our goods exports to the UK in 2014
were R37.6 billion and increased to R46.3 billion in
2017.
Noteworthy is the positive trade balance that South
Africa continues to enjoy in its trade with the UK, which
earns the country foreign currency and contributes to
reducing the country’s current account deficit. The key
priority for South Africa is to change the structure of
our trade to more value added products.
Minister Davies also welcomed the progress made by experts
towards finalisation of the rollover of
the EPA arrangement
between SACU +
Mozambique and the UK. “This is critical to ensure
continuity post-Brexit”, added Davies.
Both parties agreed to assess options for bilateral
technical cooperation in the areas of trade and investment
promotion. In addition, the parties agreed to work together
to promote investments in priority sectors to advance
sustainable economic development.
