Developments are unfolding without a clear outcome yet regarding Brexit and discussions between the United Kingdom  (UK) and European Union (EU) regarding a Brexit deal. He says at the weekend the House of Commons upended Prime Minister Boris Johnson’s Brexit plans when they voted to seek an extension of the October 31, 2019 deadline for Brexit. The extension is meant to effectively prevent a possible no-deal situation by the end of this month. The deal is now expected to be discussed early this week in the House of Commons, while the request for extension is being considered by the EU Parliament.

Sihlobo says, with regards to the implications of these outcomes for Africa and the South African agriculture sector, an Economic Partnership Agreement (EPA) between the UK, the Southern African Customs Union (SACU), and Mozambique in September this year is worth mentioning. The agreement is to ensure the continuity of the uninterrupted flow of goods and services between the two territories. In essence, the agreement maintains the same arrangements that exist with the UK while still being part of the EU. In relation to safeguards and import and export quotas of specific products, the benefits of this trade arrangement will mean new quotas on agricultural products such as wine. He says with citrus - a leading agricultural export for South Africa – the sub-sector will expectedly no longer be bound by costly and unnecessary emergency measures for citrus black spot (CBS).

Therefore, South Africa’s market access in the UK will be enhanced. Within the EU, Spain, which is the world’s leading exporter of citrus, had consistently lobbied for restrictions of South Africa’s citrus due to CBS.

According to Sihlobo, South Africa’s agricultural sector is now in a far much better space due to the SACU-Mozambique-UK Economic Partnership Agreement which ensures continuity in trade regardless of the outcome of the Brexit negotiation process.

Here is Sihlobo…

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That was Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa, Agbiz.

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