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:
Hon House Chairperson, the DA welcomes the Economic Partnership Agreement between the Southern African Customs Union and Mozambique, Sacum, with United Kingdom, UK. It is incumbent upon the South African government to ensure that where such opportunities arise, we make full use of them. The Sacum, Economic Partnership Agreement, EPA, is largely a continuation of the SADC, EU, EPA that allows for normalised trade relations and a replacement legal framework as the UK seeks to exit the EU.
Moreover, our total trade with the UK amounts to R101,02 billion and this is crucial considering the fact that the UK is our fourth largest trade destination and accounts for R57,07 billion in exports. In terms of our trade basket, platinum, fresh fruit and motor cars
account for our largest exports. However, our trade in fresh fruit in particular citrus fruit has come under increasing strain due to phytosanitary standards put in place under the SADC, EU, EPA.
It is worth mentioning that this impact around citrus fruit stems from the fungal disease called Citrus Black Spot, CBS, and has been around since 1992. The EU is of the belief that the South African citrus fruit is the carrier of CBS despite scientific studies having disproven this. Furthermore, it is well documented that the EU climate is unsuitable for the reproduction of CBS. Therefore, it can only be reasonably assumed that the CBS argument has been used as a nontariff barrier alongside agricultural subsidies provided to farmers in the EU.
According to the Bureau for Food and Agricultural Policy Institute, the citrus industry saddled with the cost of R1,86 billion in additional inputs in order to comply with CBS protocols. Surely, this cost is unsustainable and this money could be put to better by expanding citrus production in South Africa, thus creating more jobs and contributing towards the expansion of our country's
agricultural sector. The opportunity to negotiate new terms and regulations lies with respect to citrus exports.
Additional opportunities exist within the beef and poultry industries and the Sacum, EPA should be used a means to unlock these opportunities in order to expand our export basket. Trade is a two way street and it is important that the Department of Trade and Industry and government at large gets its house in order. This requires a commitment by government, to ensure that property rights are protected, interdepartmental cooperation with the phytosanitary standards are maintained and the terms of existing trade agreements are not contravened. For example, the Copyrights Amendment Bill which speaks to a fair use principle has put up participation in the generalised system of preferences and severe risks by virtue of the fact that it allows for free use of copyrighted content.
The United States of America has now begun a full blown review of our participation which could wipe out R12 billion in trade and cost thousands of jobs. In
addition, private property rights as enshrined in Section
25 of the Constitution need to be protected. We cannot allow for government's failure to deliver on land reformation to be used as an excuse to undermine a fundamental element of the market based economic system. As long as these conditions are met, Minister Patel will enjoy the support of the DA in his efforts to boost trade and grow the economy.
The Springboks now have affected their own version of Brexit on Saturday at the Rugby World Cup Final. This is not indicative of our long standing political and trading relationship. The DA looks forward to deepening and strengthening our trade relationship with the UK and will continue to support measures taken to achieve this. I thank you.
Hon Chairperson, in September the Minister of Trade and Industry, Mr Patel paraded a so-called Sacum, UK economic partnership deal. We said it then and we will say it again, there is no fundamental shift that is going to happen in the trade relations between Southern Africa and the colonial racist Britain and the
UK in general. This is nothing but a new colonial status which will continue to benefit the minority white agricultural practitioners, European manufacturers and allow mining companies some of who are criminal syndicates like Genkor to continue to enjoy unfettered access to our mineral resources whilst our people do not benefit.
What we are dealing with here is a problem, the protection of white monopoly control of the economy in South Africa. Here is what we should be doing as Southern Africa and the continent. Firstly, we should realise and appreciate that our development as the region and African Continent is linked and should happen as one thing. Secondly, we must begin to talk about African economy and trade more.
Thirdly, we must follow African Tree Trade Agreement which must fast track the process to establish one currency, an African currency. Lastly, we must begin to regulate as a continent goods that come to Africa and mineral resources that leave the continent and agree that
more than 70% of all minerals must be beneficiated in the continent.
If we continue to trade as the individual countries within the world, even agreements such as Sacum are rendered useless. In South Africa, we must repurpose state owned entities such as Eskom, Transnet, SAA and Denel to play a much broader and practical role in the development of Africa and building of infrastructure, instead of celebrating and agreeing to some colonial arrangement that should have died in 1994. I thank you hon Chair.
House Chair, the IFP welcomes this signature by the Southern African Customs Union Member States and Mozambique which was signed on 10 October 2019 in respect of a new Economic Partnership Agreement with the United Kingdom of Great Britain and Northern Island. This agreement will most certainly provide a great deal of certainty and comfort as regards the continuation of trade between all parties once the UK is no longer a member of the European Union. The implementation of the agreement must be prioritised in order to ensure that its
objectives are met and have the full support of the IFP for the approval of the House in terms of section 231(2) of the Constitution of the Republic of SA. I thank you.
Afrikaans:
Agb Huisvoorsitter, die VF Plus verwelkom die ooreenkoms wat bereik is tussen die Suider-Afrikaanse Doane Unie en Mosambiek aan die een kant, met die Vereenigde Koninkryk - wat tans nie so vereenigd is nie!
Wanneer Brittanje dus die Europese Unie sou verlaat, sal die ekonomiese vernootskapsooreenkoms van 2016 tussen die suider-Afrikaanse blok en Brittanje verleng word. Handel tussen Suid-Afrika en Brittanje het in 2018 tot meer as R100 miljard gestyg en moet beskerm word. Dankie.
Hon House Chair, the ACDP appreciates the proactive stance that the Department of Trade and Industry took when it became evident that Brexit was to take place. The Southern African Customs Union Member States and Mozambique, and the UK of Britain and Northern Island Economic Partnership Agreement once ratified, will avoid a trade disruption by rolling over the SADC and EU
Economic Partnership Agreement, EPA to a stand-alone agreement. If and when the UK leaves the EU, the UK will obviously no longer be a part of the 28 EU Member States.
This EPA is a no-brainer as it presents a win-win scenario for the South African trade in a sense that, should Brexit take place, we retain our EPA with the EU and simultaneously enter into this EPA with the UK. This will result in an overall increase in our exports to European countries. With respect to our UK EPA additional market access for 13 agricultural products including wine and sugar will be secured. The ACDP is aware that the UK is our fourth largest trading partner behind China, Germany and the United States.
And as stated by Minister Patel a total trade which excludes some of our gold exports from SA between South Africa and the UK increased from 56,3 billion in 2012 to 101,2 billion in 2018, an increase of 79,8%. Exports from South Africa to the UK increased from 27,4 billion in 2012 to 57,7 billion in 2018. In terms of employment created from exports to the UK, it is estimated that there are some 56 000 direct jobs and 117 000 indirect
jobs that will be created. In essence the effects of the agreement enable South African businesses to continue to export their products to the UK and ensure that there is continuity within this market.
Finally, it is the view of the ACDP that those who call for boycotts and the cancellation of trade agreements between the United States of America and Israel are enemies of the poor and the unemployed in South Africa. These voices are strangely silent when our African brothers are massacred in Nigeria and Somalia by terrorist organisations and other brothers and sisters in Africa sold into slavery in Libya. The ACDP supports this EPA. I thank you.
House Chair, on behalf of the ANC I stand before you in support of the Portfolio Committee on Trade and Industry that this House, in terms of section 231(2) of the Constitution approves the Economic Partnership Agreement between the Southern African Customs Union and Mozambique, Sacum and the United Kingdom of Great Britain and Northern Island.
We are part of an international trade system in which we have entered into bilaterals and multilateral trade agreements with countries of the world to ensure that our country, like all other countries in the world, has access to international markets. We stand for rule-based international system in which mechanisms and instruments have been developed and agreed to on how to conduct trade at an international level.
As alluded to by the chair of the portfolio committee, the United Kingdom of Great Britain and South Africa have extensive trade and economic relations which continue to grow. The total trade excluding gold, as has been mentioned before, between South Africa and the UK increased from 56,3 billion in 2012 to 101,2 billion in 2018, an increase of 79,8%. Wow! [Interjections.]
South Africa has a positive trade balance with the UK. The top UK imports from South Africa are gold including grated platinum, palladium, motor cars and other vehicles; fresh fruits including citrus, grapes, apples, pears, berries, peaches, avocado pears and wine - makes
you hungry. The purpose of the agreement is to provide stability EFF - stability to protect jobs.
The trading relationship between Southern Customs Union Member countries and the UK, once it formally exits the European Union, may no longer utilise existing trade agreements between the EU and Southern Customs Union Member countries. In this regard the UK Economic Partnership Agreement provides transitional arrangements to enable South African traders to continue the existing trading relationship with the UK. It is not a new trading agreement. It will maintain duty-free and quota-free access for exports from Botswana, Eswatini, Lesotho, Mozambique and Namibia into the UK. Thank you. Wow! [Time expired.]
Question put: That the Economic Partnership Agreement, EPA between the Southern African Customs Union and Mozambique, Sacum and the United Kingdom, UK be approved.
Agreed to.
Economic Partnership Agreement, EPA between the Southern African Customs Union and Mozambique, Sacum and the United Kingdom, UK accordingly approved.
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