Matthew Davies

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South African wine-producers hope that their government to negotiate better access to the British Market

After Brexit, the UK will ask in order to boost the business and trade with Africa, but as a large UK-Africa business summit starts in London, Matthew Davies , if it really is new opportunities for The Continent . to get

trading is difficult. Trade agreements are more difficult. Trade negotiations, these agreements are exponentially more complicated.

And The Road , which can cause Leakage, has been kicked down for so long, is fast running out.

when you Rules to leave the United Kingdom, the European Union at the end of January, it has avoid 11 months to come up with a trade deal with the European Union , recourse to the WTO.

As foreign Minister, Boris Johnson , visited Ghana in the year 2017, the Prime Minister , Boris Johnson , and his Left supporters have always set out to negotiate The Virtues of being outside the EU, including the ability to, its own trade agreements on their own terms for the benefit of its own citizens.

As part of a large gang has its advantages and disadvantages.

Yes, you have to make compromises and adjust to correspond to your objectives are generally agreed upon guidelines. But you also get The Power of the Block that is behind them in trade negotiations.

Where is Africa? Britain's International development Secretary, Alok Sharma , is, as one would expect, to say very optimistic, that the UK, the relations with Africa "turbo-charged", with trade, business and investment deals have been cancelled left, right and center.

The British government seems to take it seriously.

the UK-investment in Africa-The Summit can be seen as evidence, but that any change in the actual trading conditions is somehow off. May Be Years.

What will change if the UK leaves the EU? Usually, nothing changes at the end of January.

It will make a lot of political posturing and speech, but the UK is still a member of the EU customs Union and the internal market by the end of the year.

There is a provision for you to extend for a further two years, but that seems to be excluded from Prime Minister Johnson.

this means That the trade relations between the United Kingdom and Africa for the year 2020, in the framework of the EU existing different deals with The Continent .

What 2020 is to? Beyond the horizon of 2020, the trade agreements between many African countries and a fully Brexited UK the same continue to be under A Number of "continuity of contracts".

This basically say that in the terms of trade (tariffs, quotas, norms, and so on) blocks remain the same as they are currently between A Number of African countries, and trade and the EU.

For example, in September of last year, the UK initiated an economic partnership agreement with the southern African customs Union (Sacu) - from South Africa , Botswana, Namibia, Lesotho, and the Eswatini and Mozambique .

UK' s top African trading partners (2016)

trading volume $bn

source: Office of National StaisticsIt is designed to Keep the things as they are, under the current trade relations between the southern African States with the EU.

It reflects the agreement that the EU already with the Sacu.

According to the United Kingdom in International Trade a Secretary, Liz Truss , the agreement "will enable the company to Keep trading after Brexit, without additional barriers".

UK' s top trading partners (2018)

trading volume $bn

Department of International Trade source: And the it seems that The British concept - Keep the same conditions in force between the United Kingdom and the African countries, the EU offers. Worldwide, the United Kingdom, in the place of some 40 such "continuity" is concerned with a surface area of 70 countries.

the United Kingdom the right to strike was this is concerned with countries, which already had similar agreements with the EU.

Why don't you change the trading arrangement? Part of the reason to do it this way is that it allows the UK to negotiate, new agreements with those who do not have an existing trade deal with the EU. The big one, here in the United States .

doesn't Sound easy, but it is not.

at least not in the long term, because the uncertainty is still very much a part of the post-British EU exit image.

The "continuity of contracts" will eventually be phased out. That's when The Real opportunities and challenges for the African States.

Can get the African countries a better deal from the UK? Outside of the large EU-gang, the UK, technically, has less negotiating influence.

that could mean That the African countries that trade with the United Kingdom to be able to squeeze out a little more favourable terms in the negotiations. Maybe.

Kenyan flower exporters will be watching to see what will be the impact of departures from the UK EU As already mentioned, trade negotiations, are complex and require time and resources.

With the starting shot fired at the end of January, The British trade negotiation efforts on priority.

Britain's focus on Africa? The Lion 's share of The British efforts, aimed at The Best deal possible with the EU, its next and, by far, the largest trading partner.

in Addition to deals with the likes of the USA, China, South Korea and Australia, priority is to be given, which means that African countries are very far down on The List .

But it is also A Question of quantity and value. For example, South Africa , sub-Saharan African country has The Most trade with the European Union .

minerals, cars and agricultural products are exported to the EU, and a total of 18% in the UK.

But some agricultural products are subject to quotas.

Could, the United Kingdom, these rates fall? In theory, the UK could allow better access to the British Market , as it is under the present scheme, which could take, for example, the South African wineries in the claim.

But also, their French counterparts, lean on their government to reject the Brussels negotiators, their wine exports in the United Kingdom under preferential conditions than those from South Africa .

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In truth, it is impossible to say what might happen, but that's the point, to the complexity of the cross-trade negotiations.

uncertainty remains a factor, despite efforts to counter it.

Razia Khan of Standard Chartered Bank, says: "In the short-term, greater uncertainty weighs on prospects, although attenuated, in part, by the UK the offer of a renewal of the trade agreement for two years to deal with this uncertainty. "

Could economic Leakage effect Other Aspects of the African? Of course, the Brexit effect goes beyond trade.

This can be seen when the UK falls into a recession, after Escape. That would be the hit places such as South Africa difficult.

The UN has calculated that the UK, South Africa 's eighth-largest import export market in a global comparison.

If The British economy in a recessionary cold, South-Africa could get the flu.

given South Africa ' s powerhouse status in relation to other African economies, this would not be a good sign.

What is with Kenya flower growers is? British EU exit could also be new infrastructure in the UK require certain imports.

flowers are one of Kenya's biggest exports and foreign exchange earners. The industry is also an important employer, providing 100,000 people with direct employment and approximately two million indirectly.

in The Netherlands is an important transit country for Kenyan flowers in Europe at The moment, Kenyan flowers to the EU enter through The Massive market in Amsterdam.

18% of them end up in the UK. But what happens after the Brexit?

the Zero-tariff arrangements can always be agreement under a continuity, but it could be physical problems.

The Kenya Flower Council has the route pointed out that the infrastructure for the flying flowers is the UK as developed as the Nairobi-Amsterdam.

In other words, it could have an impact on.

What the business should look for people? As far as African businesses are concerned, the post-Brexit world, depends very much on the nature of the transactions with the EU and the United Kingdom.

"business, which depends to a high degree of EU-related preferences in the British Market need to Keep a watchful eye says to the developments in Europe; and on the negotiations between the United Kingdom and the country in the future," Matthew Stern, DNA Economics, Pretoria.

"If everything goes according to plan, these settings are retained, but any slippage of the two parties could be expensive for certain companies. "

African politicians and business leaders gather in London for the UK-Africa Investment Summit, the uncertainty.

It can be mitigated to a certain degree, by the continuity of the agreements, but somewhere along The Line , new negotiations are likely to happen.

business in africa, south africa, trade, brexit

Source of news: bbc.com