South Africa: SA Companies Could Boost Exports to EU By R350 Billion a Year, Research Shows

analysis

By Peter Fabricius

This 'low-hanging fruit' - sometimes quite literally - comprises products that can be exported to the EU duty-free.

South African companies are missing out on R350-billion a year in export opportunities to the European Union (EU), new research shows.

Under the Economic Partnership Agreement (EPA), which it signed with South Africa and five other southern African countries in 2016, the EU allows 96.2% by value of SA exports into its market duty-free and 2.5% under reduced tariffs.

Conversely, South Africa and the other Southern African Customs Union members allow 74.1% of EU exports into their market duty-free, and 12.5% under reduced tariffs.

The EPA has been a boon for many South African exporters.

Roberto Cecutti, the head of trade at the EU embassy in Pretoria, told a media briefing last week that in 2021 SA's exports to the EU increased by 30% and SA recorded its first trade surplus - of some R15-billion - with the EU since the first free trade agreement between SA and the EU began in 2004.

He noted that SA exported a lot more value-added goods to the EU than to the rest of the world. About 33% of SA exports to the EU were...

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