South Africa’s Trade and Industry Minister, Dr Rob Davies, has formally written a letter to the British High Commissioner seeking a meeting regarding the implications of the recent Brexit vote on South Africa’s trade and economic relations with the UK. However, he says he does not anticipate any interruption in trade with the UK, which is South Africa’s eighth-largest trading partner, accounting for 4% of its trade.

In fact, Davies, who also used the recent G20 Trade Ministers Summit in China to outline South Africa’s expectations in meetings with Britain’s Minister of State for Trade and Investment, does not view trade as a major area of risk for South Africa as a result of Britain’s recent vote to leave the European Union (EU).

“The biggest impact of Brexit on us will be what the uncertainty created does for the overall level of confidence, investment decisions and the state of the world economy. That’s something which we are watching,” Davies says.

Nevertheless, in his meeting with Lord Price in Shanghai, Davies indicated that South Africa views the recently negotiated Economic Partnership Agreement (EPA) with the EU as the “basis” for any future relationship with the UK, possibly with some improvements in access for South African agricultural products.

“We are not looking for anything radically different, or for a very long and involved trade negotiation with the UK.”

Nevertheless, South Africa is seeking further clarity from Britain on its expectations should the UK formally begin the two-year process of leaving the EU. “I did already write formally to the UK High Commissioner to say that we will be seeking an opportunity to see where we stand – so we have marked our territory, if you like.”

Separately, South Africa is also moving to shore up the modest market-access gain made after more than a decade of negotiation with the EU on the EPA, which was signed in Botswana in June by the EU and six Southern African Development Community (SADC) members – Botswana, Namibia, Mozambique, Lesotho, South Africa and Swaziland. The EPA is due to be ratified by the various Parliaments in the coming months.

Once ratified, South Africa will enjoy improved access for seafood, wine, canned fruit, sugar and ethanol beyond the access already secured under the current Trade Development and Cooperation Agreement, which extends duty-free access to 65% of South African agricultural products.

Under the EPA, the yearly tariff-free quota of 50-million litres of South African wine would be increased to 110-million litres, while 150 000 t/y of South African sugar and 80 000 t/y of ethanol could also be exported to the EU tariff free. In return, the EPA recognises over 251 European geographic indications including a range of wines, spirits, cheeses, meats and edible oils.

South Africa has already started to communicate with EU member States – having raised the matter with the French in a recent bilateral – that it does not expect any change to the tariff-rate quotas negotiated in the EPA. “When the EU has enlarged, such as when Croatia came in, for example, we didn’t get an additional tariff-rate quote for any products . . . [so] we are not expecting to see any reductions in those tariff-rate quotas if a member leaves.”

Davies is less sanguine, however, about the recent moves by Zimbabwe to restrict trade in South Africa products, which has come as a “surprise”.

South Africa and Zimbabwe have been in ongoing talks regarding Zimbabwe’s move to introduce surcharges on a number of South African products, but South Africa has been blindsided by new regulations prohibiting trade in certain products.

Davies reports that he will be meeting with Zimbabwe Industry and Commerce Minister Mike Bimha, but may also seek guidance from Cabinet on how to address the situation.

He says South Africa will not play “hard ball” if evidence is provided that South African exports are placing domestic productive capacity in Zimbabwe, or other SADC countries, at risk.

“But, if we see that imports from elsewhere are being preferred over imports from South Africa, or there is no rationale for the decision that has been taken, then, sorry, we have a commitment that must be honoured under the SADC trade protocol.”

Under the protocol, any condoning of surcharges or restrictions has to be made at the level of Trade Ministers.