South African Exporters Miss Out on Tariff Savings Despite UK Trade Agreement

The British government and South Africa’s Department of Trade marked the fifth anniversary of the UK–South Africa Economic Partnership Agreement with a seminar in Cape Town. The event, held today, brought together officials, business leaders, and trade experts to highlight the impact of the agreement and encourage greater use among South African exporters.

Since its implementation five years ago, the Economic Partnership Agreement has delivered tariff savings on R50 billion (about US$2.6 billion) worth of South African exports to the UK in 2024 alone. The agreement is designed as a development-focused free trade pact, aiming to drive inclusive economic growth and job creation in both countries. Officials at the seminar emphasized that while many businesses are already benefiting from reduced tariffs, there remains significant untapped potential.

In 2024, South African exporters paid unnecessary tariffs on R3.8 billion worth of goods—including beverages, automotive products, fruits, and nuts—destined for the UK market. The seminar urged businesses to take full advantage of the agreement to avoid these extra costs. Antony Phillipson, British High Commissioner to South Africa, said that mutually beneficial trade is central to the partnership’s goals. He stressed that working together to eliminate unnecessary tariffs can accelerate growth for both countries.

The UK is currently the largest G20 market for South African agricultural exports and stands as the world’s biggest buyer of South African wine. This presents significant opportunities for small and medium-sized enterprises looking to expand into international markets. One example highlighted at the seminar was Moedi Wines, a female-owned winery based in the Western Cape. Moedi Wines exports premium still wines to the UK and has used the agreement to compete more effectively abroad. Lesego Holzapfel, founder of Moedi Wines, said that the agreement has enabled her business to create partnerships and host tasting events in London, helping her brand grow sustainably and create jobs at home.

The seminar was organized by the British High Commission in Pretoria in collaboration with South Africa’s Department of Trade, Industry and Competition (dtic), Wesgro, and supported by the South African Chamber of Commerce and Industry. The event focused on providing practical tools and resources for exporters in agriculture and automotive sectors to better utilize tariff-free access under the agreement.

Willem van der Spuy, Acting Deputy Director-General for Exports at dtic, said that while many exporters are already taking advantage of preferential access to the UK market, too many firms continue to pay avoidable tariffs due to lack of awareness or understanding of how to use the agreement. He explained that this awareness program aims to translate trade policy into action at the firm level, unlocking export-led growth especially for small and medium enterprises.

The UK government reaffirmed its commitment to ensuring Southern African businesses fully leverage the Economic Partnership Agreement. Officials said they will continue working with local partners to foster growth, strengthen competitiveness, and contribute to a diversified economy that turns profits into jobs and investment. The fifth anniversary marks a milestone in deepening trade ties between the two countries and highlights ongoing efforts to make international markets more accessible for South African businesses.