Agri pundits –
International
Agri pundits –
“ BRICS should be part of planning following Brexit ”
With the citizens of the United Kingdom voting in a referendum 52 %/ 48 % leave EU / remain in EU – recently , South African agriculture took a look at the implications of this move in the North for local foreign exports of South African produce . The UK is a major market for South African produce , with over one third of our wine exports to the EU being consumed in the UK and more than 20 % of our fruit exports .
“ South Africa , having joined the BRIC-grouping ( Brazil , Russia , India and China ) was widely criticized at the time and has thus far not delivered the expected trade benefits especially in terms of value added products ” says Johannes Möller , president of Agri SA .
Catalyst According |
to |
Möller , |
South |
Africa as the latest addition to this |
grouping is viewed as a catalyst |
and a gateway for development |
in Africa . But South Africa would |
obviously want its own trade dispensation to improve in addition to economic benefits that may arise by further involvement on the continent .
“ Besides having had to make a substantial contribution to the BRICS Development Bank , we would obviously want the bank to be able to leverage funds from international sources and supporting services in relation to the application .”
According to Möller the withdrawal of the United Kingdom
( UK ) from the European Union ( EU ) will apparently in terms of the EUtreaty only become effective after a minimum period of two years , implying that the immediate impact on the local agricultural sector will be minimal in the short term , barring a possible appreciation of the Rand against the Pound .
The recently concluded EU / SADC Economic Partnership Agreement ( EPA ) will thus also remain in place for at least a similar period , allowing time to negotiate a new trade dispensation with the UK . The fact that the UK is a major market for our European exports , emphasizes the need to put a suitable replacement in place .
“ From an agricultural perspective we will have to be vigilant in the immediate future to at least secure the best possible dispensation for agricultural products in the UK market ”, Möller said .
Financial powerhouse
Möller also said that the withdrawal of the UK from the EU opened up a number of uncertainties that will require a rethink on various fronts . It is well known fact that the UK is still one of the financial power houses of the world and a major supplier and exporter of services .
Linking up to the BRICS countries in a formalized way , even by joining the current grouping , can be mutually beneficial to all parties whilst specifically enhancing the aims of the BRICS-vision with respect to economic growth through trade , supporting the Development Bank and indirectly development on the African continent . “ I trust that our government , in collaboration with other member countries , will explore options in this regard ”, Möller said .