Trade Agreement Between The European Union (Eu) And South Africa

The agreed text recognises that it is in the interest of both parties to ensure that public aid is granted in a fair and transparent manner. It also takes into account the supporting role that State assistance and participation in the restructuring of South Africa`s industry and economy can play. It therefore provides for consultations between the parties in order to find a satisfactory solution to situations in which public aid distorts fair competition. In this scenario, the SACUM-UK agreement will be maintained, but it will also lead to further trade complications and uncertainties about how to deal with certain issues, such as the level and quantity of local inputs in the production of motor vehicles in South Africa for exports to the EU and the UK. An agreement between the EU and the UK will therefore be the most preferred outcome for the SACUM countries. The EPO is helping to improve the business climate between partners by providing a stable and forward-looking framework for businesses in South Africa and across Southern Africa. It helps to promote bilateral and regional trade, thus offering new opportunities to achieve the objectives of the strategic partnership between South Africa and the EU. Agreement was also reached on an integrated agenda to address in the future areas of interest that could not be resolved during the negotiations. These include issues of market access, regional cumulation, export taxes, technical barriers to trade, geographical indications and electronic certifications. To avoid trade disruptions, South African Customs Union countries reached an agreement with Britain in 2017.

The countries of the customs union are South Africa, Botswana, Lesotho, Namibia and Eswatini – plus Mozambique (SACUM). There is a consensus that sacum and uk are transferring the provisions of the EU-SADC EPA into a new bilateral trade agreement. The rollover should ensure the continuity of trade relations with the EU in the United Kingdom. Development-oriented: The EPO provides asymmetric access to SADC-EPA group partners. They can protect sensitive products from full liberalisation and safeguard measures can be used if imports from the EU increase too rapidly. A detailed development chapter identifies trade-related areas that are eligible for financing. The agreement also contains a chapter on sustainable development that covers social and environmental issues. 5. Upon entry into force of the agreement, the EU will provide a duty-free quota for wines covering the current level of trade of 32 million litres of South African exports to the EU, taking into account the future growth of this quota. Around 86% of South Africa`s total exports to the EU are industrial products. Although average EU tariffs on industrial products are low, the removal of tariffs will nevertheless give South African exporters a relative advantage over some of their competitors in the EU market.

The EU will abolish its industrial duties, either immediately or within three years of the entry into force of the agreement. These include most sensitive textile and clothing products (only about 20% of South Africa`s textile exports to the EU will expire over a longer period of time, six years after the entry into force of the agreement). With the entry into force of the agreement, customs duties on automotive components will be reduced to 50% of the eu`s most widely charged rates of remuneration. . . .

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