Brexit won’t interrupt SA-UK trade, says Davies

Johannesburg – The South African government plans to continue the trade and investment relationship with the United Kingdom (UK), following Brexit.

This is according to Minister of Trade and Industry Rob Davies, who was speaking at the British Chamber of Business dialogue on the UK-SA bilateral relationship, held in Sandton last week.

According to the Department of Trade and Industry (DTI), the UK remains a “strategic” trade and investment partner. Its share of the market for agricultural exports include 20% if South Africa’s wine exports and 30% of fruit exports, while the UK accounts for 30% of South African investments into Europe.

“Our priority now is that we do not want any interruption in our trade relations with the UK. The UK government has given an indication that it will roll-over existing trade arrangements to provide continuity and predictability,” said Davies.

He added that the Economic Partnership Agreement (EPA) provides a good platform to continue facilitating trade between the two countries. “Under the EPA, we have secured an improved market access for wines and some fruit products, as well as negotiated new access for sugar and ethanol,” he said.

Other tradable products which have been recognised by the EPA include Rooibos, Honey bush, Karoo lamb and some wines.

Between January 2003 and September 2016, there have been 323 Foreign Direct Investment (FDI) projects from the UK to South Africa. This is a total capital investment amounting over R63bn, or an average investment per project of R1.6bn. As a result, 4 857 jobs were created, according to FDI data.

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Britain’s Prime Minister Theresa May called for an early election in June, which was approved by Parliament. An election isn’t due until 2020, but this is an effort by May to negotiate  the most favourable terms for Brexit.