BREXIT: Britain Signs Deal With SADC Countries
In preparation for the unforeseen circumstances that may herald its exit from the European Union, The United Kingdom have started wooing African countries, making concessions aimed at consolidating its traditional markets, while seeking ways of establishing new ones. To this end, the United Kingdom has commenced an Economic Partnership Agreement with the Southern African Customs Union and Mozambique (SACU+M) which will allow business to keep trading freely after Brexit. This according to officials brings to an end, the formal trade discussions between the countries and the next stage will be the formal signing of the UK-SACU+M Economic Partnership Agreement.
The UK identifies this market within the southern African region as a very important market for UK exports especially machinery and mechanical appliances valued at over £409 million in 2018, motor vehicles worth £335 million, and beverages including whisky worth £136 million.
Sources that are in the know of the agreements say that the agreement will allow businesses to continue to trade on preferential terms with South Africa, Botswana, Lesotho, Namibia, Eswatini and Mozambique. Add to that, it will supports the economic development of these Commonwealth partners laying the foundations for new trade and investment in the future.The Agreement will also help to strengthen further the trading relationship between the UK and the countries which is presently put at £9.7 billion using the 2018 figures.
With this development, consumers and businesses in the UK will continue to benefit from more choice and lower prices on goods imported from SACU+M countries. Major imports to the UK from these countries last year included edible fruit and nuts (£547 million) and motor vehicles (£409 million). Trade continuity agreements signed cover countries accounting for £89billion of the UK’s trade. When the SACU+M agreement is signed and takes effect, this will go up to £99bn.
Speaking on the development, the British Secretary of International Trade Liz Truss noted that this trade agreement, once it is signed and takes effect, will allow businesses to keep trading after Brexit without any additional barriers. Add to that, the Agreement will equally benefit British businesses while supporting developing countries in reducing poverty through trade. The African countries are expected to use this opportunity to grow their economies, create jobs and increase incomes for their citizens.”
“This is a major milestone as the UK prepares to become an independent trading nation once again, and we are helping businesses get Ready to Trade with the most exciting markets around the world, the Secretary opined. The United Kingdom High Commissioner to Botswana Katy Ransome pointed out that this Agreement in principle demonstrates the British Government’s commitment to increasing trade with developing countries and boosting economies across Southern Africa and the UK. She added that this new agreement, once it is signed and takes effect, ensures continuity in our £9.7 billion trading relationship, allowing our businesses to continue supporting our mutual prosperity and economic development.
One of UK’s biggest conglomerates Diageo Plc commended the decision, speaking on the new agreement, Wilson Del Socorro, Global Director of Government Affairs for Diageo PLC said that Diageo warmly welcomes the news of a UK-Southern African Customs Union and Mozambique agreement in principle. He highlighted that international trade is vital to Diageo as it gives us the opportunity to reach more consumers and markets around the world. Diageo, owners of Guinness Breweries acknowledged that Africa is an important growth region for Diageo, including export markets like South Africa for Scotch whisky. Many African and UK businesses are expected to tap into this agreement to strengthen their business relationships and dealings between the continent and the United Kingdom
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
