BREXIT won't harm UK-SA trade - high commissioner

British High Commissioner
to South Africa, Dame Judith
Macgregor, has assured local
traders that there is very little
uncertainty in British foreign
policy relationships despite
upheaval caused by Brexit.
Speaking in Cape Town to
the Exporters’ Club Western
Cape recently, she said now
more than ever there was
opportunity to increase
business with the UK in
light of the country’s intent
to start exit procedures from
the European Union (EU) in
March next
year.
“South
Africa is a big
relationship
for us. We
export twice
as much to
the country
as to any
other African
destination. It
is significantly
greater than
what we move
to Brazil and at least six times
more than what we export to
Indonesia.”
She said any discussion
in London over important
trading partners would see
South Africa right up there.
“We have a very balanced
relationship with South
Africa that is extremely
important to us.”
Macgregor said the
economic partnership
agreement negotiated by
the EU –
that would
significantly
improve South
Africa’s access
to the EU and
came into
effect last
week – would
continue to see
the UK as a
part of that.
“There
are many
privileges
within this
agreement that took ten
years to negotiate. It opens a
lot of opportunity for South
African exporters. Mercifully
our decision to leave the
European Union does not
affect this agreement in
any way as we had signed it
previously and it will remain
in place for the period that
the UK is still part of the EU.”
She said it was worth
underlining this fact in going
forward, especially in light of
the UK wanting to grow its
trade with South Africa.
Macgregor said there was
still a lot of uncertainty and it
remained extremely difficult
to comment on what exactly
the impact and long-term
effects of Brexit would be.
But, she said, for South
Africa it was crucial to know
that it was to Britain’s benefit
to grow trade and to continue
to build a relationship with
the country.
“It is very difficult to
comprehend or convey the
complexity of the task ahead.
It will take at least two
years to complete,” she said.
“There is still a great deal of
uncertainty about how this
massive negotiation is going
to take place or go forward.
The pound
felt the
immediate
impact
following the
referendum
and
plummeted
downward,
but all
indicators at
present are
that it has
stabilised
and that the
order going forward is
very positive. The Bank
of England has not had to
reduce interest rates or inject
liquidity.”
She said the serious
economic consequences
feared from the Brexit
decision had not really
materialised or been felt and
the UK growth rate remained
the single highest growth rate
in the EU.
For all intents and
purposes the UK decision to
leave Brexit would benefit
South African traders as it
would allow the country to
have far wider and broader
trade relationships with
countries, she added.
“Brexit is not going to
harm or stop trade and
investment between our
countries. Clearly in two
years’ time, when we leave
the EU, we do not want gaps
or a hiatus in our trading
agreements with countries
and so we are working hard
to ensure this is not the case.”
INSERT 1
Any discussion in
London over important
trading partners would
see South Africa right
up there.
Dame Judith Macgregor
INSERT 2
Fast facts
* Exports to SA double those to any other African
destination.
* Still part of economic partnership agreement
with EU.
* SA a far bigger market than Brazil.