South Africa is “pulling out
all the stops” to ensure strong
trade relations with the UK
in the wake of the March 31
deadline for the triggering of
Brexit.
Chief director: trade
negotiations at the
Department of Trade and
Industry (dti), Niki Kruger,
told FTW last week that key
role players in the Business
Process Services (BPS)
incentive for United Kingdom
traders had agreed to set up
a technical working group
with the dti to enhance South
Africa’s value proposition as
a key trading and investment
destination.
Launched in 2014 by
Minister of Trade and
Industry, Dr Rob Davies, the
BPS incentive scheme was
created to grow South Africa’s
export revenue through
offshoring services after the
business process services
industry was identified
through the Industrial Policy
Action Plan (Ipap) as one
of the country’s drivers of
economic growth.
“South Africa is aware of
the deadline and is working
towards a customisation
of the current Economic
Partnership Agreement (EPA)
that the country has with the
European Union (EU),” said
Kruger.
She pointed out that
Britain’s participation in the
agreement would become null
and void when it formally
exited the EU. “However, for
now the status quo remains
and the UK
is obliged to
offer the same
market access
as all other
EU member
states,” Kruger
explained,
adding that
the UK could
not formally
negotiate trade
agreements
outside of the
EU until its
exit had been
formalised.
There was some clarity
provided on Britain’s plans
for trade outside of Europe
recently, when the British
government published its
official policy document
setting out a Brexit plan.
UK prime minister Theresa
May, in outlining the 12
priorities contained in the
document, said: “It is clear
that the United Kingdom
needs to significantly
increase its trade with the
fastest growing export
markets in the world. Since
joining the European Union
(EU), trade as a percentage
of gross domestic product
(GDP) has broadly stagnated
in the UK.”
May noted
that South
Africa, China,
Brazil, and the
Gulf States
had already
expressed
their interest
in striking
trade deals
with Britain,
pointing
out that she
wanted to
remove as
many barriers to trade as
possible.
“I want Britain to be free
to establish our own tariff
schedules at the World Trade
Organisation, meaning
we can reach new trade
agreements not just with the
European Union but with old
friends and new allies from
outside Europe too,” she said.
The prime minister made
it clear that she did not want
Britain to be part of the
Common Commercial Policy,
nor be bound by the Common
External Tariff – which the
UK’s current membership of
the EU dictates.
“I do want us to have a
customs agreement with the
EU. Whether that means we
must reach a completely new
customs agreement, become
an associate member of the
Customs Union in some way,
or remain a signatory to
some elements of it, I hold no
preconceived position. I have
an open mind on how we do
it,” she said.
But British forwarding
agents need more clarity.
“While Prime Minister
Theresa May’s muchanticipated
speech delivered
some clarity, it remains short
on the details that will assist
its members as they go about
their business of managing
much of the UK’s visible
international trade,” said
Robert Keen, director general
of the British International
Forwarders' Association, the
representative body for UK
freight forwarders.
INSERT AND CAPTION
I want Britain to be
free to establish its
own tariff schedules
at the World Trade
Organisation.
– Theresa May
