Especial emphasis is being put on the future of trade relations after Brexit
South Africa is the largest trade partner of UK and the second largest in EU. With such a big trade relations to both the sides, there are certainly insecurities that are leading to more and more meetings between the two countries regarding the arrangements that are to be made to lessen the effect of Brexit on trade of both the countries. An interim arrangement was being discussed based on the already existing EU partnership deal. This is to ensure that the transfer will not hurt the trading relation and the procedure will be smooth and without complications to streamline Cargo to Africa. Because both are strong trade partners, such actions are obligatory to ensure harmony.
An Intelligent Decision is needed:
What is expected from both the sides is to take this time period as a fruitful era. There are still two years before Brexit and lot will be decided by UK as well the trading partners. There will be a total loss if there is any decision that can harm these trade relationships in any way. Both UK and South Africa are in very good positions to reach a point where both can prosper more in trade and make most out of the situation.
The increasing meetings and revising agreements are very important steps and both the countries should act wisely to reach an interim agreement that will support the trade and cargo from both means like sea cargo and air cargo, while the situation becomes clear after a hard or soft Brexit whatever the case is. Countries are trying to secure their relations with UK to make things move as they are and not have any harm due to the process.
What is UK expecting of South Africa?
Many of us always talk about the other countries but what about UK? While others are making arrangements to secure their ends, UK also demands something in return. There are tariff rates which are fixed for the domestic commodities to save them from the competitive imports in the economic partnership agreement of EU. Lower tariff is applied on those products to come in but in certain quota, any volume above the decided one is considered prohibitive traffic.
UK wants SA to discuss this point that tariff rate volumes remain the same and not decrease after Brexit. EU has not increased them even if there is an increase in the members so the expectation form the UK side is that South Africa will not reduce it when the time comes.
Ensuring uninterrupted Trade:
Because of such strong ties, none of the two parties want to have a negative effect of Brexit on the trade side. The interim arrangement will ensure that the trade between the two countries remains smooth and uninterrupted. A halt in the trade will mean a heck of loss for both the sides.
The increasing meetings and this arrangement also hints towards how important are these two countries for each others trade. The South African Customs Union (SACU) has already sent a letter to UK to make a suggestion of discussions between the two nations to establish an interim agreement to avoid any distasteful experiences for both sides in terms of trade.
