SA beefing up ties with UK before Brexit shift

SOUTH Africa and the United Kingdom would explore opportunities to strengthen trade ties ahead of the UK leaving the European Union (EU)‚ Trade and Industry Minister Rob Davies and UK secretary for international trade Liam Fox said yesterday.

The message followed a meeting in London on Tuesday at which Davies sought to get the commitment of the UK to working on a post-Brexit trade deal as soon as possible.

South Africa’s trade with the UK falls under the economic partnership agreement between the Southern African Customs Union (which includes Mozambique) and the EU.

But when the UK leaves the EU‚ it will have to negotiate its own trade agreements with South Africa and other countries.

Both ministers committed to strengthening ties as the UK prepares to leave the EU and to work together to identify trade and investment opportunities that will benefit not only the UK and South Africa‚ but Southern Africa and Africa as a whole.

Davies said South Africa and Britain had to ensure that they had a predictable trade and investment environment for mutual benefit for both parties post-Brexit.

Fox said South Africa was a key UK trading partner and a strategic ally for the UK in Africa and internationally.

“It is our largest export market in Africa and a G20 member,” he said.

“South Africa is also the largest recipient of UK foreign direct investment (FDI) in Africa – accounting for 30% of total UK FDI in 2014‚ a value of £13.1-billion (R217-billion).

“As we become an even more outward-looking country‚ we will continue building on our relationship with South Africa and the meeting with Davies was an opportunity to discuss how we progress that‚” Fox said.

“The UK is a strategic partner for South Africa and remains a key market for especially agriculture exports, accounting for more than 20% of South Africa’s exports of wine and 30% of fruit exports globally.

“The UK is the biggest destination in the EU for South African investment‚ accounting for 30% of SA investments into Europe and 46% of its global investment originates from the UK.”

Bilateral trade between the UK and South Africa stood at £7.6-billion in 2015‚ with UK exports increasing by 25% in the last decade.