UK post-Brexit won't be more restrictive than EU - Davies

Live aquacultured perlemoen are to be formally regulated, following a declaration by Trade and Industry Minister Rob Davies. (Duncan Alfreds, News24)
Live aquacultured perlemoen are to be formally regulated, following a declaration by Trade and Industry Minister Rob Davies. (Duncan Alfreds, News24)

Cape Town - There’s no reason to believe Britain will be more restrictive than the European Union (EU) when it comes to trade agreements with South Africa, said trade and industry minister Rob Davies.

Briefing journalists on an incoming state visit by India and outgoing visit to France on Monday, Davies was asked how the Britons’ recent vote to leave the European Union (dubbed Brexit) would affect trade relations with South Africa.

Davies said Britain has in the past been much less vocal about the standards of South African agricultural goods than the rest of the EU and he therefore doesn’t believe Brexit per se will have an impact on trade agreements with Britain.

“But the overall health of certain sectors in the British economy will be a determinant of the level of and desire to investment in South Africa,” Davies said.

India’s state visit

On Friday, India’s Prime Minister Narendra Modi will pay a visit to South Africa to discuss new trade initiatives. India is currently South Africa’s sixth largest trading partner with trade totalling close to R95bn in 2015.

India’s exports to South Africa increased from R29bn in 2011 to R54bn in 2015, while South Africa’s exports to the country climbed from R24bn in 2011 to R41bn. Although the trade surplus is currently in favour of India, the Department of Trade and Industry is working towards adding South Africa’s exports of specifically value-added products to India.

Outgoing visit to France

In addition to furthering trade relations with India, President Jacob Zuma and a ministerial and business delegation will pay an official visit to France on 11 and 12 July.

The main purpose of the visit is to attract French investment into South Africa’s agro-processing, automotive manufacturing, aircraft and electro-engineering sectors, among others.

As with India, the trade surplus is also currently in favour of France, but Davies is of the view that South Africa could increase exports heeled tractors and vacuum cleaners.

Beitbridge border post

Asked about the status of quo of a demonstration at the Beitbridge border post between South Africa and Zimbabwe over the weekend, Davies said over the last few years the Zimbabwean authorities have been imposing restrictions on imports of South African goods.

Over the weekend, a group of South African traders blockaded the border post following a clampdown on trade with South African businesses by the Zimbabwean authorities.

“There have been various surcharges on South African goods and we’ve been raising the matter bilaterally and though the Southern African Development Community (SADC).”

Davies said the South African government agreed to differentiate between products from South Africa that could create difficulty for Zimbabwe’s existing industries and those that compete with products from other countries.

“We won’t play hardball if it’s in competition with Zimbabwe, so we’ll condone fall back. But if it’s products that are competing with other third countries, we won’t agree, as there is a SADC trade protocol in place.”

               
ZAR/USD
16.77
(-0.09)
ZAR/GBP
21.15
(-0.12)
ZAR/EUR
18.95
(-0.11)
ZAR/AUD
11.66
(-0.17)
ZAR/JPY
0.16
(-0.09)
Gold
1798.22
(+0.06)
Silver
18.69
(+0.13)
Platinum
824.50
(+0.30)
Brent Crude
43.14
(+2.10)
Palladium
1961.36
(+0.61)
All Share
55417.89
(-0.66)
Top 40
51154.08
(-0.74)
Financial 15
10472.31
(+1.28)
Industrial 25
76134.69
(-1.67)
Resource 10
52483.78
(-0.20)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1942 votes
I am taking a hit, but should be able to recover in the next year
23% - 2542 votes
My finances have been devastated
34% - 3796 votes
It's still too early to know what the full effect will be
25% - 2724 votes
Vote