South Africa Trade Relations and Agreements Workshop
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Subtitl e: Present er: 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
description
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. Outline. General South African trade Statistics Focus on US-South Africa Trade Trade Statistics - PowerPoint PPT Presentation
Transcript of South Africa Trade Relations and Agreements Workshop
Subtitle:
Presenter:
Date:
South Africa Trade Relations and Agreements
WorkshopSouth African Trade relationship with the European Union and the United States explored
Evans Chinembiri
1 August 2013
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
General Trade Statistics
SA Total Exports in 2012):R700Bn
SA Total Imports in 2012):R833Bn
Trade deficit (2012): R132Bn
General Trade Statistics (2) Asia leading
Import and Export destination; the EU is ranked as South Africa’s 2nd largest trading partner in 2012.
Rise of Africa as a trading partner
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)
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.
Exports Imports
Share in 2011
AAG 2001-2011
Share in 2011
AAG 2001-2011
C01: Live Animals 1% 8% 1% 11% C02: Vegetable products* 4% 15% 2% 9% C03: Animal or Vegetable Fats * † 0% 19% 0% 23% C04: Prepared foodstuffs and tobacco † 3% 8% 2% 13% C05: Mineral products * † 25% 20% 8% 21% C06: Chemicals 5% 11% 12% 8% C07: Plastics 2% 14% 4% 10% C08: Leather 0% 1% 0% 2% C09: Wood Products 0% 2% 0% -7% C10: Wood Pulp and Paper 2% 5% 2% 5% C11: Textiles 1% 3% 1% 0% C12: Footwear 0% 7% 0% -8% C13: Stone and Glass 0% 7% 2% 9% C14: Precious Metals* 26% 15% 0% 7% C15: Base metals 14% 11% 2% 9% C16: Machinery* 8% 14% 29% 8% C17: Vehicles † 8% 14% 24% 13% C18: Scientific Equipment 0% 14% 7% 9% C19: Arms and Ammunition 0% -100% 0% -100% C20: Miscellaneous Manufactures 1% 4% 1% 5% C21: Arts and Antiques 0% 6% 0% 7% C22: Other unclassified goods 0% -25% 0% 6% C23: Special Classification: Vehicle Parts † 0% 11% 3% 17%
* Fastest Growing South Africa exports to the United States † South Africa’s fastest Growing imports form the United States
Focus on US-South Africa: Trade Stats…(3)
• US-SA trade trends (Section Level)
Focus on US-South Africa: Trade Stats…(4)
• SA-US Bilateral Trade Stats: SA-US Export Share Growth Matrix (Section Level
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.
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)
FOCUS ON EUROPEAN UNION – SOUTH AFRICA
TRADE RELATIONS
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
Focus on EU-South Africa: Trade Stats…(2)
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.
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
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
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