UK, Sacu in Brexit trade pact talks

A ministerial meeting between the trade ministers of the UK, Mozambique and members states of the Southern African Customs Union (Sacu) is scheduled for Friday to finalise a trade agreement for when the UK leaves the EU.

The agreement will replace the existing economic partnership agreement, which Sacu (SA, Botswana, Namibia, Lesotho and Eswatini) and Mozambique have with the EU. The new agreement tweaks and improves on the economic partnership agreement but there are a few outstanding matters.

By Friday there is expected to be clarity on the way forward for the UK in relation to Brexit and whether it will apply for an extension of time in which to negotiate a deal with the EU. On Tuesday the British parliament rejected the agreement negotiated with the EU by UK prime minister Theresa May.

The outstanding issues to be negotiated relate to cumulation.

Department of trade and industry director-general Lionel October said in an interview on Wednesday, ahead of a briefing to the portfolio committee on trade and industry, that if the terms of the new agreement cannot be agreed before the UK leaves the EU on March 29, there is always the fallback position of agreeing to simply roll over the existing economic partnership agreement.

Rolling over the existing agreement will occur under a bridging agreement with the UK, which would apply for a period of six months while the replacement agreement is being finalised.

An agreement between Sacu, Mozambique and the UK is necessary because after Brexit the UK will no longer form part of the economic partnership agreement. October said an agreement with the UK will provide continuity and prevent a disruption of trade.

The department’s deputy directorgeneral of international trade and economic development Xolelwa Mlumbi-Peter said negotiations on the rollover agreement into a standalone one have progressed well.