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Cape Town - The UK will remain an important trading partner for SA, the Presidency said on Friday.
The UK was SA’s eighth largest trading partner last year, and SA’s export to the UK was R41bn, with imports at R35bn.
“The UK will have a period of two years to negotiate their exit from the European Union after formal notice to withdraw … has been given,” the Presidency said in a statement.
“Until the end of that two year period, the Common International Trade Policy (CITP) of the EU would continue to apply to SA’s exports to the UK.”
This policy includes the current Trade, Development and Cooperation Agreement (TDCA), which is a free trade agreement between SA and the EU.
The Presidency said it would also cover the Economic Partnership Agreement (EPA), signed on June 10 in Botswana.
“Therefore, UK rights and obligations under the existing EU Treaties will continue to apply during this period. There will therefore be no immediate implications for SA exports into UK.”
SA and the UK would have two years to review their future trade relationship, the statement said.
“One of the options open to the UK would be to join the European Free Trade Area (EFTA) … [which] has a free trade agreement with the EU and forms part of the European Economic Area. Importantly, EFTA also has free trade agreement with the Southern African Customs Union (SACU) that South Africa is part of.
“SACU and EFTA have already started a review of this agreement. Another option would be for the UK and SACU to negotiate a bilateral free trade agreement and one possibility would be to base it on the EPA.”
Government would consider all options available and start engagements with the UK, the Presidency said.
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