Trade Agreements Between South Africa And Mozambique



IG: The EPA contains a bilateral protocol between the EU and South Africa on the protection of geographical indications and trade in wines and spirits. The EU will protect names such as rooibos, South Africa`s famous infusion and many wine names such as Stellenbosch and Paarl. In return, South Africa will protect more than 250 EU names in the food, wine and spirits categories. A bilateral forum of heads of state was established in 1997. These meetings are held quarterly under the chairmanship of the Presidents of South Africa and Mozambique and are attended by ministers and officials from the relevant ministries of both countries. The heads of state and government of industry bilaterally chair the strategic projects between the two countries. The Republic of Mozambique is classified as a low-income and least developed country (LDC), of which about 80% of the population lives in poverty. In the World Economic Forum (WEF) Enabling Trade Index (2012), the country ranked 97th out of 132 countries that measure institutions, policies and services to facilitate trade in countries. Over the past two decades, the country`s economy has grown rapidly, with an annual growth rate of about 8%, mainly supported by the exploitation of natural resources. Despite its high growth rate and ongoing mega-projects, the Mozambican economy remains based on agriculture, accounting for 75% of the population`s employment.

Its GDP is mainly based on the services, agriculture and manufacturing sectors. Obstacles to its development include ineffective import and export procedures, inadequate transportation infrastructure and services, the poor regulatory environment and physical security issues. In the coming years, the Mozambican government is committed to tackling these problems by diversifying its economy, combating corruption, investing in infrastructure development and improving trade facilitation (Bertelsmann Foundation 2014, WTO 2009). The opening speeches of President Mmoiemang (ANC, North Cape) were the president-in-office, as President Rayi (ANC, Eastern Cape) had recovered from illness. It opened the virtual meeting and hosted members and delegations from the Ministry of Trade, Industry and Competition.