Casting a wary eye on Brexit, the United Kingdom has signed an Economic Partnership Agreement (EPA) with members of the Southern African Customs Union and Mozambique (SACU+M) that will allow business to keep trading freely after its exits the European Union.
This was seen as a major milestone as the UK is preparing to become an independent trading nation once again and to help businesses get ready to trade with the most exciting markets around the world.
The agreement allows businesses to continue to trade on preferential terms with South Africa, Botswana, Lesotho, Namibia, Eswatini and Mozambique.
It also supports the economic development of these Commonwealth partners laying the foundations for new trade and investment in the future.
UK embassy media liaison officer Fortunate Xaba said in a statement on Wednesday that the agreement would help to strengthen the trade relations between the UK and SACU+M nations, which was valued at about US$12 billion in 2018.
“The SACU+M nations are an important market for UK exports of machinery and mechanical appliances worth $505 million in 2018, motor vehicles worth $413.7 million, and beverages including whisky worth $167.9 million,” Xaba said.
Major imports to the UK from these countries last year included edible fruit and nuts and motor vehicles.
International Trade Secretary Liz Truss said the agreement “will allow businesses to keep trading after Brexit without any additional barriers.”
“As well as benefiting British businesses, this will also support developing countries in reducing poverty through trade. They will be able to grow their economies, create jobs and increase incomes for their citizens.”
Katy Ransome, the UK High Commissioner to Botswana reportedly said, “This agreement in principle demonstrates our commitment to increasing trade with developing countries and boosting economies across Southern Africa and the UK.”
BM/jn/APA