can be a lengthy process and could
actually result in a decrease in trade
volumes between the UK and
South Africa until such time that
the negotiations are finalised. It is
therefore imperative that policymakers pro-actively engage on this
matter, rather than reactively;
- The UK has been a critic and opponent of the extensive agricultural
subsidies European countries have
in place under the EU’s Common
Agricultural Policy (CAP). The effect
hereof places constrains on the
competitiveness of a variety of agricultural products from Africa and
South Africa into the EU. The loss
of anti-subsidies support within the
EU advocated in the past by the UK
may have further negative implications for trade between the EU and
Africa and South Africa.
- Travelling to the UK, especially for
South African business people
could become more challenging as
the UK potentially could adopt
more conservative customs and
immigration regimes of its own;
- SA may have to place more focus
on diversifying trade partners as
well as spreading relative shares of
trade amongst trading partners to
“spread” the impact.
In conclusion
The well-known Chinese saying
that “in change lies opportunity” is
very relevant for the recent developments around the UK exiting the
EU. In context of agriculture (as
well as other sectors) business decision makers and policy makers
need to pro-actively start investigating both the potential opportunities and threats that could emanate as a result of Brexit, arguably
the most significant event in international trade in the last few decades of global trade developments.
The TRADE research entity specialises in the fields of international
trade and economic development
and Prof Wilma Viviers, director of
TRADE, holds a Chair in the World
Trade Organisation (WTO) Chairs
Programme. For more information
on TRADE’s activities see http://
www.nwu.ac.za/trade.
TRADE Research Advisory (Pty) Ltd,
which is TRADE’s commercial advisory arm and a spin-out company
of the NWU, provides strategic and
practical assistance to government
entities and business concerns in
how to optimise their regional or
global presence, from the perspective of economic development and/
or export expansion. For more information on TRADE Advisory’s activities see http://
www.tradeadvisory.za.