1. Subtitle: Presenter: Date: South Africa Trade Relations and Agreements Workshop South African Trade relationship with the European Union and the United States explored Evans Chinembiri 1 August 2013

2. Outline  General South African trade Statistics  Focus on US-South Africa Trade  Trade Statistics  Trade Agreements  Focus on European Union-South Africa Trade  Trade Statistics  Trade Agreements

3. General Trade Statistics  SA Total Exports in 2012):R700Bn  SA Total Imports in 2012):R833Bn  Trade deficit (2012): R132Bn

4. General Trade Statistics (2)  Asia leading Import and Export destination; the EU is ranked as South Africa’s 2 nd largest trading partner in 2012.  Rise of Africa as a trading partner

5. Focus on US-South Africa: Trade Stats  SA represented the biggest market and largest trading partner in SSA (excluding oil exporters)  SA maintained a positive trade balance over the period 2004-2012 (excl-2009)

6. Focus on US-South Africa: Trade Stats…(2)  SA mining exports: World ↑ 11 percentage points; US ↓ 3 percentage points.  Agric exports: World ↑ 1 percentage point; US ↓ 1 percentage points.  Basic Processing: World ↓ 4 percentage point; US ↓ 3 percentage points.  Advanced manufacturing exports declined by 7 percentage points. World ↓ 7 percentage points; US ↑ 6 percentage points.

7. Focus on US-South Africa: Trade Stats…(3) US-SA trade trends (Section Level)

8. Focus on US-South Africa: Trade Stats…(4) SA-US Bilateral Trade Stats: SA-US Export Share Growth Matrix (Section Level

9. Focus on US-South Africa: Agreements  South Africa enjoys Preferential access to the US market through the African Growth and Opportunity Act (AGOA)  A unilateral trade policy concession governing US - Africa trade and investment relations.  Came into force in 2000 → Expiring in 2015  Threats:  AGOA may not be extended;  AGOA extended - with South Africa’s benefits as adjusted i.e. curtailed.

10.  South Africa signed a Trade and Investment Framework Agreement (TIFA) → amended in 2012.  South Africa is part of the US- SACU Trade, Investment, and Development Cooperative Agreement (TIDCA) in 2008  The above serve as forums for the US and SA to improve cooperation and enhancing opportunities for trade and investment. Focus on US-South Africa: Agreements…(2)

11. FOCUS ON EUROPEAN UNION – SOUTH AFRICA TRADE RELATIONS

12. Focus on EU-South Africa: Trade Stats  SA represented the biggest market and largest trading partner in Africa  SA maintained a negative trade balance over the period 1988-2011

13. Focus on EU-South Africa: Trade Stats…(2)

14. Focus on EU-South Africa: Trade Stats…(3)  Germany is South Africa’s most important trading partner (20%), then followed by the United Kingdom, the Netherlands Belgium and Italy, all contributing approximately 20%, 14%, 9% and 8 % (respectively) to South Africa’s exports to the European Union.  South Africa’s exports are driven mainly by mining and whole vehicle and automotive component exports to the Germany.  South Africa also exports refined petroleum products and Agricultural Products (wines), although relatively smaller amounts as compared to Mining and Automotive sector exports.  Vehicle exports are most likely to be driven by intra-industry trade within the automotive sector, as German vehicle manufacturers based in South Africa import and export different makes of vehicles.

15. Focus on EU – South Africa: Agreements  South Africa signed a TDCA with the EU.  Fully liberalised in 2012  South Africa European Union also signed a Strategic Partnership in 2007 which has further consolidated relations.  South Africa (together with SACU) currently negotiating an EPA with the European Union  Could unlock opportunities in Agricultural products exports in the form of tariff concessions

16. Focus on EU – South Africa: Agreements…(2)  Threats  Uneasy relations between the European Union and South Africa over the cancelling of 3 Bilateral Investment Treaties with European Union countries.  Reduction in Aid to South Africa.  Threat of SPS concerns on Agricultural Exports - Current sticking point: Citrus Black Spot

17. TIPS NPC (NON-PROFIT COMPANY) 227 LANGE STR | NIEUW MUCKLENUEK | PRETORIA 0181 P.O. BOX 11214 | HATFIELD | 0028 TEL: (012) 433 9340| FAX: (012) 433 9344 | E-MAIL : evans@tips.org.za | WEBSITE: www.tips.org.zaevans@tips.org.zawww.tips.org.za Thank you