Trade Agreement Between South Africa And Germany

Germany is one of the largest investors in South Africa with more than 370 German companies in South Africa. As one of South Africa`s main trading partners, the trade balance remains very favourable to Germany, but in recent years there has been an improvement with an increase in South African exports to Germany. Under the so-called SADC EPA, the EU has eliminated some or all tariffs on 98.7% of imports from South Africa, while guaranteeing full access for other signatory countries. Today, the EU remains South Africa`s largest trade and investment partner. The continued volatility of the South African currency represents both a potential benefit and a risk. While it could negatively affect South African imports from Germany, it is expected to help South Africa step up exports to Germany, which would reduce South Africa`s trade deficit. Despite the good personal chemistry between Steinmeier and Nkoana-Mashabane and efforts to strengthen economic cooperation, South Africa`s exit from the ICC – if it really materializes – would be a blow to bilateral relations. There is duty-free trade between South Africa and the other four countries (Botswana, Lesotho, Namibia and eSwatini), which form the South African Customs Union (SACU). The 2012 Southern African Development Community (SADC) free trade agreement allows duty-free trade between 12 of the 15 members. The EU-South Africa Agreement on Trade and Development Cooperation, which entered into force in 2000, has become the cornerstone of the regional trade landscape as a Progressive Free Trade Agreement (FTA). South Africa has also negotiated agreements with the European Free Trade Association and Mercosur. South Africa has concluded, through SADC, negotiations on Phase I of the Tripartite Free Trade Agreement, which links SADC, the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) into a free trade area.

Today, South Africa acts worldwide and is considered one of the most powerful economies in Africa. Sweeping macroeconomic reforms have improved competitiveness and boosted the economy, thus playing a key role in the global market. This is supported by a highly developed financial, legal, communication and transport infrastructure. In addition to its role as an important emerging country, South Africa is also seen by investors as a bridge to other African markets. The pretoria government is more interested in other aspects of bilateral relations with Berlin. South Africa wants more trade with Germany, more German investment in the country. Germany is already South Africa`s second largest trading partner and Pretoria wants to deepen these trade relations. .