Free Trade Agreement South Africa

SACU is the Second largest trading partner of the United States in Africa, after Nigeria, whose exports are almost exclusively petroleum products. In total, SACU is the 33rd largest trading partner of the United States. Imports from SACU amounted to $10.0 billion in 2007, an increase of 33% over 2005 and an increase of 169% over 19974. Major U.S. exports to the region include aircraft, automobiles, computers, medical devices, construction machinery and agricultural machinery. The 2007 trade deficit with SACU was $4.4 billion. South Africa signed a major free trade agreement with the European Union in 1999. This agreement not only had a lasting effect on South Africa itself, but also set the conditions for stronger EU (and EFTA) action to get African nations to commit to greater trade and investment policy liberalization over the next decade, notably through the EPA negotiation process between the EU and ACP countries. The SAfCFTA secretariat is responsible for coordinating the implementation of the agreement and is an autonomous body within the AU system. Although it has an independent legal personality, it will work closely with the AU Commission and receive its AU budget. The Council of Ministers responsible for trade will decide on the headquarters, structure, role and responsibilities.

[35] The African Union Assembly of Heads of State and Government is the highest decision-making body. It will probably meet during the AU summit. [39] The Council of Trade Ministers provides strategic trade oversight and ensures the effective implementation and implementation of the AfCFTA agreement. [39] The agreement was negotiated by the African Union (AU) and signed on 21 March 2018 by 44 of its 55 member states in Kigali, Rwanda. [15] [16] The agreement first requires members to remove tariffs on 90% of goods, allowing free access to goods, goods and services across the continent. [15] The UN Economic Commission for Africa estimates that the agreement will boost intra-African trade by 52% by 2022. [17] The proposal is expected to enter into force 30 days after ratification by 22 of the signatory states. [15] On 2 April 2019, The Gambia became the 22nd state to ratify the Convention[18] and on 29 April, the Sahrawi Republic tabled the 22nd filing of ratification instruments; The agreement entered into force on 30 May and entered its operational phase following a summit on 7 July 2019.

[19] Since the EU and South Africa concluded a Trade Development and Cooperation Agreement (TDCA) in 1999, the two sides have maintained strong and growing trade relations.

Posted in Uncategorized