So, one of the under-reported reasons May is actually prioritising South Africa is Ford. (Yes, cars again.)
Ford currently run a supply chain from the UK, via South Africa, back into the EU.
Ford currently run a supply chain from the UK, via South Africa, back into the EU.
An engine is made in Dagenham, shipped to South Africa, put in a vehicle, and then sold back into the EU.
The engine enters South Africa tariff free, under the SADC-EU Economic Partnership Agreement.
The engine enters South Africa tariff free, under the SADC-EU Economic Partnership Agreement.
The final vehicle can then be sold back into the EU tariff free, from South Africa, because the UK-originating engine can be accounted for as 'local' for the purpose of meeting the EPA's local content threshold thanks to provisions on bilateral cumulation included in SADC-EU.
To maintain this supply chain the UK needs to do two things:
1. Replace/replicate the EU's agreement with South Africa;
2. Negotiate a trilateral agreement between South Africa, the EU and the UK, allowing for cumulative rules of origin
1. Replace/replicate the EU's agreement with South Africa;
2. Negotiate a trilateral agreement between South Africa, the EU and the UK, allowing for cumulative rules of origin
Another company keen on the UK replicating the EU's trade agreement with South Africa:
Less complicated - Tate & Lyle. They currently import quite a lot of raw cane sugar from South Africa into the UK under the terms of the agreement.
Less complicated - Tate & Lyle. They currently import quite a lot of raw cane sugar from South Africa into the UK under the terms of the agreement.
Anyway, the PM in South Africa story isn’t about future opportunities, it’s about trying to hold onto that we already have.
