Deputy President Paul Mashatile has called on the United Kingdom government to raise the tariff-free quota (TFQ) on wine and sugar that is coming from South Africa in the European country.
He also wants the European market to stock South Africa’s traditional beer, umqombothi.
The deputy president is in the UK to work with leaders to help bolster trade and investment between the two nations.
It should be noted that the Southern African Customs Union (SACU) and the Mozambique Economic Partnership Agreement (EPA) denoted a 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,” he explained.
“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.
South Africa’s TFQ for the export of wine into the UK is 71.5 million litres per annum and applies to 30% of bulk and 70% of packaged wine.
“We call for the UK to agree to this change which is mutually beneficial and will benefit the UK bottling industry.”
Europe could soon get traditional beer
Mashatile said South Africa was looking to introduce local umqombothi (traditional beer made from maize) or African beer to the global market including the UK, Germany and the the Netherlands.
IOL BUSINESS