Mashatile Urges UK to Increase Tariff-Free Quotas on South African Wine and Sugar

According to Mashatile, this adjustment could be mutually beneficial, providing advantages to both the South African wine industry and the UK bottling sector.

Deputy President Paul Mashatile has called on the United Kingdom government to raise the tariff-free quota (TFQ) on wine and sugar imported from South Africa. Speaking during a South African Heritage Month dinner hosted by Brand South Africa in London, Mashatile emphasized the need for increased flexibility in trade arrangements between the two nations, specifically regarding wine and sugar exports.

He suggested that the Southern African Customs Union (SACU) and the Mozambique Economic Partnership Agreement (EPA), which currently enforces a 70/30 split between bottled and bulk wine, could be adjusted to a more favorable 50/50 split, without necessitating changes to the existing EPA framework. According to Mashatile, this adjustment could be mutually beneficial, providing advantages to both the South African wine industry and the UK bottling sector.

Currently, the TFQ for South African wine into the UK stands at 71.5 million litres per annum, with 30% designated for bulk and 70% for packaged wine. Mashatile is advocating for this quota to be increased to 150 million litres, which would offer significant export growth potential for South African producers. Additionally, the Deputy President proposed raising the TRQ for South African sugar to 171 thousand tonnes under the same agreement.

Boosting South Africa's Global Exports

Mashatile expressed his belief that, by introducing traditional South African beverages such as umqombothi (African beer), alongside increased wine exports, South Africa could dramatically boost its global trade presence. Target markets for such exports include the United Kingdom, Germany, the United States, the Netherlands, and Canada. These measures, Mashatile argued, could enable South Africa to double its current export volumes to these countries, significantly benefiting both local producers and international consumers.

Mashatile stressed that the economic relationship between South Africa and the United Kingdom is already robust, with the interchange of commodities such as food and textiles playing a crucial role in both nations' economies. This enhanced trade relationship, he said, highlights the diverse cultural heritage that South Africa brings to the global market.

The Role of the Government of National Unity

Shifting focus to domestic governance, Mashatile highlighted the successes of the Government of National Unity (GNU) in fostering inclusivity and diversity. He pointed out that despite differences among coalition parties, the GNU has proven capable of working towards a common goal: building a stronger and more inclusive South Africa.

“We have demonstrated to the world that our rainbow nation has a thriving democracy, and we can work together to create a better future," Mashatile said. As South Africa marks 30 years of freedom, he urged reflection on the contributions of those who fought for liberation and spent years in exile advocating for a peaceful and democratic country.

Global South Africans as Ambassadors

Mashatile took the opportunity to address South Africans living abroad, referring to them as "Global South Africans" who continue to represent the country on the international stage. He praised Brand South Africa for launching the Global South African programme, aimed at connecting citizens overseas with opportunities to uplift the nation’s global image.

The Deputy President called on all South Africans, whether living, working, or studying abroad, to actively participate in promoting the country. He emphasized that South Africa’s future rests on its ability to position itself as a key player in the "African century," with Global South Africans serving as ambassadors for the country’s brand in international markets.

The Road Ahead for South Africa

In conclusion, Mashatile reaffirmed his optimism that the Government of National Unity will continue to play a critical role in achieving key national priorities, including inclusive growth, poverty reduction, job creation, and the development of a competent and ethical state. He also expressed confidence that South Africa is well-positioned to seize the opportunities presented by its diverse culture, vibrant democracy, and expanding trade relationships, particularly with strategic partners like the United Kingdom.

The Deputy President urged the UK government to respond positively to South Africa's request for increased trade flexibility, which would help strengthen bilateral economic ties and contribute to long-term economic stability for both nations.