Hon House Chairperson, I rise to introduce the Portfolio Committee of Trade and Industry's Report on its consideration of the Economic Partnership Agreement, EPA, between the Southern African Customs Union and Mozambique, Sacum, and the United Kingdom, of Great Britain and Northern Ireland. The Portfolio Committee of Trade and Industry, having considered the request for approval by Parliament on the economic partnership agreement between the Southern African Customs Union member states and Mozambique on the one part and the United Kingdom of Great Britain and Northern Ireland of the other part recommends that the House:
In terms of Section 231(2) of the Constitution approve this said agreement.
The purpose of this agreement is to provide stability for the trading relationship between the Sacum countries and the UK once it formally exit the European Union, EU, and may no longer utilise the existing trading agreement between the UK, EU and Sacum countries.
The Sacum countries are: Botswana, eSwatini, Lesotho, Mozambique, Namibia and South Africa. In this regard, the UK, EPA provides transitional arrangement to enable South African traders to continue their existing trading relationship with the UK.
It will maintain duty free and quota free access for exports form Botswana, eSwatini, Lesotho, Mozambique and Namibia into the UK. For South Africa tariff rates quota for 13 agricultural products as currently provided under the Southern African Development Community, EU, EPA will be maintained.
In addition, South Africa has secured favourable tariff rates quota for market access for these agricultural products into the UK, particularly for sugar and wine volumes. As the UK is not in a position to negotiate on the new issue, a built-in agenda has been agreed to and will be addressed during the future negotiations with the UK after it officially exits EU. These include duty free, quota free market access for South Africa or an increase of tariffs from quota volumes, regional accumulation to allow Botswana, eSwatini, Lesotho, Mozambique and Namibia to integrate their products, especially basic agricultural products inputs into the South African manufacturing process.
The other is the inclusion of certain types of vehicles. The utilisation of the export taxes enhance cooperation of technical barriers to trade, such as standard and conformity assessment procedures as well as the utilisation of the agricultural indicators and the introduction of the electronic certification system.
South Africa has a positive trade balance with the UK. The UK continues to be one of South Africa's traditional
trading partners. Therefore, the committee unanimously supports the approval of the agreement for ratification as it important for South Africa to maintain and grow this relationship with the UK. I submit this report for consideration. Thank you.
Declarations of Vote: