Uk-Southern African Economic Partnership Agreement
Updated certificates of origin will be available as soon as your regular supplier`s agreement comes into effect, for example. B chambers of commerce. The certificates will be very similar to those currently used. They will show the UK as a place of origin and not as the EU. As a result, the new EPA will greatly benefit South Africa and its neighbours, as in the event of Brexit, it will continue to allow preferential access to the UK market for certain important sectors and avoid possible disruption. The automotive industry in South Africa is protected by the new agreement. According to the South African Ministry of Trade and Industry (DTI), the new agreement ensures that cars assembled in South Africa remain tariff-free for the UK. 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 fruits, grapes, plums and wine.
This new agreement, once signed and entered into force, will ensure the continuity of our $9.7 billion trade relationship and allow our businesses to continue to support our mutual prosperity and economic development. The agreement is expected to enter into force from 1 January 2021 (or as soon as possible). The agreement allows businesses to continue trading on preferential terms with South Africa, Botswana, Lesotho, Namibia, Eswatini and Mozambique. It also supports the economic development of these Commonwealth partners, who lay the foundations for new trade and investment in the future. Removing trade barriers contributes to the creation of millions of jobs and economic growth and offers the world`s poorest the opportunity to move beyond aid dependency to become our trading partners of the future. This agreement-in-principle demonstrates our commitment to expanding trade with developing countries and reviving the economies of southern Africa and the United Kingdom. An Economic Partnership Agreement (EPA) is a kind of free trade agreement for relations with developing countries. The EU is implementing seven economic partnership agreements with 32 partners, 14 of which are in Africa. The main objective of EPAs is the leverage of trade and investment for sustainable development. The content of the agenda will be expanded, with agreements covering new themes such as services and investment.
After two years of negotiations, a new agreement, SACUM-UK EPA, was reached in September 2019. This is essentially a transfer of the terms of the CDAA-EU EPA to the new SACUM-UK EPA. These conditions apply to: documents containing contractual information and a summary of the trade agreement between the United Kingdom and the Member States of the Customs Union of Southern Africa and Mozambique. To avoid trade disruptions, South African Customs Union countries have reached an agreement with the UK in 2017. The countries of the Customs Union are South Africa, Botswana, Lesotho, Namibia and Eswatini , as well as Mozambique (SACUM). In principle, the draft principle is to transfer sacum and the United Kingdom into a new bilateral trade agreement of the provisions of the EU-SADC EPA. The roll-over should ensure the continuity of trade relations after the UK`s shutdown in the EU. The trade deal will allow businesses to continue trading without further obstacles after Brexit.