Sacum Uk Agreement

As the deadline for trade talks between the European Union (EU) and the UNITED Kingdom after Brexit has emerged, concerns have been raised about the ability of both sides to reach a deal. As for the Brexit divorce deal, the UK is expected to leave the EU`s internal market and customs union on 1 January 2021. A trade agreement will govern the future trade relationship between the EU and the UK. However, the prospect of reaching such a deal has been called into question by the recent publication of a controversial new law from the UK government that wants to repeal parts of the Brexit withdrawal pact. As such, the new EPA greatly benefits South Africa and its neighbours, as in the event of Brexit, it will allow continued preferential access to the UK market for some important sectors and avoid potential disruptions. The automotive industry in South Africa is protected by the new agreement. According to South Africa`s Department of Trade and Industry (DTI), the new agreement ensures that cars assembled in South Africa remain duty-free for Britain. This is good news for South Africa, where the automotive sector accounts for 6.8% of GDP and many South Africans are employed in this sector. Other duty-free imports of South African products included in the agreement include citrus products, grapes, plums and wine. As the world waits to hear what Brexit will be like at the end of October this year, the countries of the Southern African Customs Union with Mozambique (SACUM) recently announced the agreement in principle on a new Economic Partnership Agreement (EPA) with the United Kingdom (UK).

The parliamentary processes necessary to implement the agreement are ongoing. The agreement, which will govern bilateral trade between SACUM countries and the UK, will enter into force when the UK leaves the EU in October. The new agreement, referred to as the SACUM-UK Economic Partnership Agreement, will retain the preferential trade conditions with regard to customs duties, quotas, rules of origin and health and safety rules that are currently part of the existing SADC-EU agreement. . . .