Leaving the European Union (EU) will mean billions of pounds worth of trade deals being renegotiated, warned David Cameron, prime minister for the United Kingdom during a visit to Iceland yesterday.
This was the first time Cameron directly addressed the alternative options to Britain remaining in the EU during a trip to Iceland. British voters are due Voters are due to decide by the end of 2017 whether the UK should remain in the EU, with opinion polls showing rising support for leaving the bloc.
Already, the United States has commented that it is not keen on pursuing a separate free trade deal with Britain if it leaves the EU. Reuters news agency quoted US trade representative, Michael Froman, as saying: “I think it’s absolutely clear that Britain has a greater voice at the trade table being part of the EU, being part of a larger economic entity. We’re not particularly in the market for free trade agreements (FTAs) with individual countries. We’re building platforms that other countries can join over time.”
If Britain left the EU, Froman reportedly said, it would face the same tariffs and trade barriers as other countries outside the US free trade network. “We have no FTA with the UK so they would be subject to the same tariffs – and other trade-related measures – as China, or Brazil or India,” he pointed out.
South Africa’s trade with Britain could also potentially be impacted as current agreements with Britain form part of the EU agreement.
According to the UK high Commission, this is the current SA/UK trade picture
· South Africa is the UK’s largest trading partner in Africa, and provides a trade surplus for South Africa (i.e. SA exports more than it imports from the UK).
· South Africa is the UK’s 27th largest export market, and the UK’s 36th market for imports.
· The UK is one of the largest sources of foreign direct investment (FDI) to South Africa. From 2003 to April 2013, a total of 194 FDI projects from the UK were recorded amounting to a total capital investment of R96.77 billion.
·Top exports to the UK from South Africa include platinum and diamonds as well as wines and fresh fruit such as apples, pears, grapes and citrus fruit.
