A new trade deal with the European Union (EU) will see almost all South African products having preferential market access in the EU.
The Economic Partnership Agreement (EPA) under the SADC-EU EPA framework replaces the trade provisions of the existing bilateral trade agreement between South Africa and the EU, known as the Trade, Development and Cooperation Agreement (TDCA).
The SADC EPA agreement came into effect on Monday 10 October, said the Department of Trade and Industry (dti) and the EU Delegation to the Republic of South Africa in a joint statement.
"Almost all South African products (about 99%) will have preferential market access in the EU, compared to about 95% under the old agreement. About 96% of the products will enter the EU market without being subjected to customs duties or quantitative restrictions," said the dti and the EU delegation.
The other three percent will still have access, albeit partial, that is similar or improved compared to the TDCA. The Southern African Customs Union (SACU) as a group has granted EU lower market access of 86%, in line with the developmental nature of the agreement.
While South African exports have traditionally included mostly primary products, agricultural and manufactured goods have gained prominence among the top 10 South African exports.
Agricultural benefits range from improved market access for more than 30 South African products into the EU to the phasing out of the EU export subsidies.
