Deputy President calls on the UK to raise tariff-free quota on wine, sugar from SA

Tuesday, October 1, 2024

Deputy President Paul Mashatile has called on the United Kingdom government to raise the tariff-free quota (TFQ) on wine and sugar coming from South Africa. 

The Southern African Customs Union (SACU) and the Mozambique Economic Partnership Agreement (EPA) include provisions for a 70/30 split between bottled and bulk wine throughout the trade relationship. 

“As the South African government, we urge flexibility for a 50/50 split. In our view, this does not necessitate an amendment of the EPA but can be a decision of the SACUM-UK Joint Council.

“South Africa has requested that the United Kingdom raise the TRQ amounts allowed under the Environmental Protection Agency Framework for South African sugar to 171 thousand tonnes and for wine to 150 million litres,” he said on Monday. 

The TFQ for imports of South African wine into the United Kingdom is currently sitting at 71.5 million litres per annum, which applies to 30% bulk and 70% packaged wine.

“We call for the UK to agree to this change which is mutually beneficial and will benefit the UK bottling industry.”

Deputy President Mashatile was speaking during the South African Heritage Month dinner hosted by Brand South Africa in London.

The country’s second-in-command is in London for the second leg of his working visit to improve trade and investment relations between the two nations. 

He said he believed that if South Africa could introduce local umqombothi, also known as African beer, or more wine to the global market, the country could double exports from South Africa to the United Kingdom, Germany, the United States, Netherlands and Canada.

The Deputy President said another element that has worked to construct a robust economy and enhance economic relations with the United Kingdom is the conventional interchange of commodities and services, such as food and clothes. 

“As you run your company and live in this area of the globe, you must show that South Africa is a nation moulded by a diverse range of cultures, languages, and traditions, all of which contribute to the vivid mosaic that defines South Africa.”

Government of National Unity

Shifting his focus to the Government of National Unity (GNU), he said the coalition government has demonstrated that South Africa embraces its diversity. 

“We have shown to the world that, despite our differences, we can work together for a single goal – to create a stronger South Africa. We have also shown the world that our rainbow country has a thriving democracy.”

He told the attendees that he was convinced that the GNU would endure and achieve its goals of driving inclusive growth and job creation, reducing poverty, addressing the high cost of living, and establishing a competent, ethical, and progressive State. 

“However, as we mark 30 years of freedom this year, we must remember those who were at the forefront of the liberation of our nation and spent years in exile advocating for a peaceful and democratic South Africa.”

The Deputy President paid tribute to those who continue to raise the South African flag high internationally by contributing to the welfare of their fellow citizens and the economy. 

“We refer to these people as Global South Africans. Now to all South Africans living, working, studying or travelling abroad, it is an exciting time for you to be a Global South African – to be part of the South African story, to be a son or daughter of Africa, to be directly connected to what we confidently predict will be the African century.” 

He applauded Brand South Africa for launching the Global South African programme, as the country works to position itself as a global player in an increasingly competitive world. 

“We believe that as Global South Africans you are an untapped voice and advocates who can elevate our nation's brand position to greater heights in international markets, whilst also shaping perceptions and the narrative about our beautiful and beloved country.” – SAnews.gov.za