By Mpho Moloi
In a significant appeal to strengthen trade relations between South Africa and the United Kingdom, Deputy President Paul Mashatile has called for an increase in the tariff-free quota (TFQ) on wine and sugar exports from South Africa. Speaking at a South African Heritage Month dinner hosted by Brand South Africa in London, Mashatile outlined the country’s desire to renegotiate existing trade arrangements under the Southern African Customs Union (SACU) and the Mozambique Economic Partnership Agreement (EPA).
This strategic move is part of South Africa’s broader effort to boost its exports to the UK, one of its major trading partners. The Deputy President’s appeal comes at a time when both nations are looking to strengthen economic ties and create mutually beneficial trade agreements that could help local industries grow while supporting the UK’s supply chains.
Request for Flexibility in Wine and Sugar Exports
Currently, the TFQ for South African wine imports into the UK stands at 71.5 million litres annually, split between 70% packaged and 30% bulk wine. Mashatile has urged the UK government to adjust this split to 50/50, allowing more flexibility for South African exporters. He argued that this adjustment would not require amending the existing EPA but could be made through a decision by the SACUM-UK Joint Council.
In addition to wine, Mashatile also called for an increase in the sugar quota. The South African government is seeking to raise the TFQ for sugar exports from the current level to 171,000 tonnes. According to the Deputy President, this change would allow South Africa to increase its export capacity, benefiting both the South African agricultural sector and the UK’s sugar bottling and processing industries.
“We call for the UK to agree to this change which is mutually beneficial and will benefit the UK bottling industry,” Mashatile stated during his address.
Economic Benefits for South Africa
Mashatile emphasised that increased export quotas would significantly boost South Africa’s wine and sugar industries, both of which are key contributors to the national economy. The wine industry alone supports thousands of jobs across the value chain, from vineyard workers to bottling plants. An increased TFQ would help open up new opportunities for both large-scale producers and smaller wineries, particularly those focusing on the export market.
The sugar industry, similarly, stands to benefit from the expanded export quota. South Africa is a leading sugar producer in the Southern African region, and increasing exports to the UK could help stabilise the sector, which has faced challenges in recent years due to global price fluctuations and rising production costs.
Mashatile also noted that introducing more South African beverages, such as locally brewed umqombothi (traditional African beer), to the international market could further increase export opportunities. He expressed optimism that South Africa’s diverse range of agricultural products has the potential to expand its footprint in key markets, including the UK, Germany, the US, the Netherlands, and Canada.
Strengthening Trade Relations with the United Kingdom
Deputy President Mashatile’s working visit to the UK is part of a broader effort to improve trade and investment relations between the two countries. The UK is one of South Africa’s largest trading partners, and Mashatile sees increased wine and sugar exports as part of a wider strategy to enhance economic cooperation.
He highlighted that trade between South Africa and the UK extends beyond agricultural products to include a wide range of commodities and services. “The conventional interchange of commodities such as food, clothes, and services has been instrumental in constructing a robust economy and enhancing our economic relations with the UK,” he stated.
The Deputy President’s remarks reflect a growing sense of optimism about the future of South Africa-UK trade relations, particularly as the two countries navigate the post-Brexit landscape. With the UK no longer bound by European Union trade regulations, there is greater scope for flexibility in forging new trade agreements that suit both nations’ economic priorities.
Impact of Tariff-Free Quotas on Local Industries
The call for a higher TFQ has been met with positive reactions from key stakeholders in South Africa’s wine and sugar industries. These sectors have long relied on exports to major markets like the UK to sustain growth and create jobs. The Wine and Spirits Board of South Africa has welcomed Mashatile’s efforts, noting that a more flexible quota system would allow producers to adapt more readily to market demands.
The UK’s bottling industry could also stand to benefit from the changes proposed by Mashatile. By increasing the proportion of bulk wine imports, South African producers would allow UK-based bottlers to handle a larger share of the bottling process, creating jobs and boosting the local economy.
South Africa’s Heritage and Economic Unity
During his speech, Mashatile took the opportunity to reflect on South Africa’s rich cultural heritage, emphasising the country’s diversity as a source of strength in its international relationships. He spoke proudly of South Africa’s Government of National Unity (GNU) and the achievements made over the past 30 years since the end of apartheid.
“We have shown to the world that, despite our differences, we can work together for a single goal – to create a stronger South Africa,” Mashatile said, adding that the coalition government remains committed to driving inclusive growth and reducing poverty.
Global South Africans: Building South Africa’s Brand
Mashatile also lauded the efforts of the South African diaspora, who continue to contribute to the country’s economy and reputation abroad. Through Brand South Africa’s Global South African programme, citizens living, working, or studying abroad are encouraged to play an active role in promoting South Africa as a destination for trade, tourism, and investment.
“We believe that as Global South Africans, you are an untapped voice and advocates who can elevate our nation’s brand position to greater heights in international markets,” Mashatile told the audience in London. He applauded their role in shaping perceptions of South Africa abroad, urging them to remain engaged in the country’s future.
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