Brexit: No worries yet for SA

THERE is no immediate concern about how Britain's exit from the EU will impact on trade between the UK and South Africa, Trade and Industry Minister Rob Davies says.

“The UK is our eighth-largest trade partner. Annually we export R41 billion worth of goods and import R30bn. But, provisions will be made by the EU during the two-year exit.”

His department was committed to ensuring there would be no restrictions in trading with the UK, he said.

But while Davies did not see a need for concern, Wesgro chairperson Tim Harris said the Brexit results caused significant uncertainty for Western Cape businesses exporting to the UK as well as in the tourism sector.

“Wesgro will be working with Western Cape businesses to mitigate any negative effects on our trade and investment relationships with Britain and Europe.”

Harris said this would include working with the Department of Trade and Industry and Britain regarding future trade tariffs. He said the agency will also do its utmost to assure UK companies that the Cape and the rest of Africa were safe and secure investment destinations.

“The UK was the second most important export market for the Western Cape last year with exports valued at R9bn. Overall exports to the European Union were valued at R33bn in 2015, with the United Kingdom accounting for 36% of these purchases. In particular, the UK is a major market for Western Cape agribusiness products buying R1.5bn worth of wine, R1.2bn worth of apples and pears, and R4.8bn of citrus in 2015.”

Cape Chamber of Commerce and Industry president Janine Myburgh said: "For SA, the pluses are a rise in the price of gold, and perhaps an opportunity for more trade with the UK. The question is whether we will lose any of our existing markets in Europe.”