Under the so-called ”SADC EPAs”, the EU has totally or partially eliminated tariffs on 98.7% of imports from South Africa, while guaranteeing full free access to other signatory countries. Today, the EU remains South Africa`s largest trade and investment partner. Improved trade opportunities for goods: The EPA guarantees Botswana, Lesotho, Mozambique, Namibia and Eswatini access to the EU market without tariffs or quotas. South Africa enjoys new market access compared to the EU-South Agreement on Trade, Development and Cooperation (TDCA), which currently regulates trade relations with the EU until October 2016 (when the EPA entered into force provisionally, thus removing the trade component of the TDCA). The new access includes better trading conditions, particularly in agriculture and fisheries, including for wine, sugar, fishery products, flowers and canned fruit. The EU will have significant new market access from Southern Africa`s customs union (products include wheat, barley, cheese, meat and butter) and the security of a bilateral agreement with Mozambique, one of the least developed countries in the region. Mozambique has ratified the SADC Trade Protocol, which aims to liberalize intraregional trade by creating mutually beneficial trade agreements, thereby improving investment and productivity in the region. It calls on Member States to remove barriers to trade, make customs procedures more flexible, harmonise trade policy measures based on international standards and prohibit unfair trading practices. The Protocol also lays down the institutional arrangements for implementation and contains annexes detailing policy on rules of origin, customs cooperation, harmonisation of trade documents, transit facilities and trade development. On 10 June 2016, the EU signed an Economic Partnership Agreement (EPA) with the SADC EPA Group, which includes Botswana, Lesotho, Mozambique, Namibia, Eswatini (formerly Swaziland) south africa. Angola has the opportunity to accede to the agreement in the future. Worldwide, there is duty-free trade between South Africa and the other four countries (Botswana, Lesotho, Namibia and eSwatini) that make up the South African Customs Union (SACU).

The Southern African Development Community (SADC) Free Trade Agreement has enabled duty-free trade between 12 of the 15 members since 2012. The EU-South Africa Agreement on Trade and Development Cooperation, which entered into force in 2000, has become the cornerstone of the regional trade landscape as a progressive free trade agreement. South Africa has also negotiated agreements with the European Free Trade Association, the United Kingdom and Mercosur. Through SADC, South Africa concluded negotiations on Phase I of the Tripartite Free Trade Agreement, which links SADC, the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) into a free trade area. South Africa is also a member of the new African Continental Free Trade Area (AfCFTA). On 10 June 2016, the EU signed an Economic Partnership Agreement (EPA) with the SADC EPA Group, which includes Botswana, Lesotho, Mozambique, Namibia, Eswatini (formerly Swaziland) south africa. Angola has the opportunity to accede to the agreement in the future. The agreement was the first regional EPA in Africa to be fully operational after Mozambique began implementing the EPA in February 2018. The other six members of the Southern African Development Community region – the Democratic Republic of Congo, Madagascar, Malawi, Mauritius, Zambia and Zimbabwe – are negotiating Economic Partnership Agreements with the EU in other regional groups, namely Central Africa or East and South Africa.

The Republic of Mozambique is classified as both a low-income country and a least developed country (LDC), with about 80 per cent of the population living in poverty. The country ranked 97th out of 132 countries in the World Economic Forum`s (WEF) Enabling Trade Index (2012), which measures institutions, policies and services to facilitate trade in countries. Over the past two decades, the country`s economy has grown steadily at an annual growth rate of about 8%, mainly due to the exploitation of natural resources. Despite the high growth rate and ongoing megaprojects, Mozambique`s economy is still agrarian, employing 75% of the population. GDP is mainly based on services, agriculture and manufacturing. Obstacles to its development include inefficient import-export procedures, inadequate transport infrastructure and services, a poor regulatory environment and physical security issues. In the coming years, the Mozambican government will work to address these issues by diversifying the economy, fighting corruption, investing in infrastructure development and improving trade facilitation measures (Bertelsmann Stiftung 2014, WTO 2009). The South African government is seeking to further open its market for government reasons in order to increase trade and develop more competitive domestic industries. However, in 2006, the South African government made exceptions to this approach to protect the labor-intensive apparel industry. In 2020, due to the Covid-19 pandemic, the South African authorities adopted an emergency measure to restrict the entire movement of goods and people. these have now been partially repealed. Geographical indications: The EPA contains a bilateral protocol between the EU and South Africa on the protection of geographical indications and trade in wines and spirit drinks.

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. Development-oriented: The EPO provides asymmetric access to SADC-EPA Group partners. They can protect sensitive products from full liberalisation and safeguard measures can be taken if imports from the EU increase too rapidly. A detailed chapter on development identifies trade-related areas that are eligible for financing. The agreement also includes a chapter on sustainable development covering social and environmental issues. Describes the trade agreements in which this country is involved. Provides resources for U.S. companies to obtain information on the use of these agreements. The Republic of Mozambique covers a total area of 799,380 km² (308,641 square miles), which covers 13,000 km² of inland waters and represents the Mozambican section of Lake Malawi.

Mozambique borders Tanzania to the north, Malawi, Zambia and Zimbabwe to the west, and South Africa and Swaziland to the south. Mozambique has also concluded bilateral trade agreements with Malawi (resolution No. 7/2004 of 10 October 2006) and Zimbabwe (resolution No. 7/2004 of 14 April). Since the EU and South Africa concluded a Trade Cooperation and Development Agreement (TDCA) in 1999, the two sides have enjoyed a strong and growing trade relationship. In June 2016, the EU and South Africa – along with Botswana, Lesotho, Mozambique, Namibia and Swaziland – signed the Southern African Economic Partnership Agreement (SADC EPA), which regulates trade in goods between the two regions, replacing the TDCA`s trade-related provisions. The EPO contributes to improving the business climate between partners by providing a stable and forward-looking framework for businesses in South Africa and across Southern Africa. It helps boost bilateral and regional trade, creating new opportunities to achieve the objectives of the strategic partnership between South Africa and the EU. The agreement was the first regional EPA in Africa to be fully operational after Mozambique began implementing the EPA in February 2018. The South African Reserve Bank approves the currency exchange. S.E.M.

Ms. B Mpahlwa High Commissioner Extraordinary and Plenipotentiary After the end of the civil war, the country`s new constitution was adopted on 30 November 1990 and the Comprehensive Peace Agreement between Frelimo and Renamo was signed on 4 October 1992. Mozambique also enjoys duty-free access to many tariff products in developed and middle-income countries. The World Trade Organization database contains detailed information on preferential access to Mozambican products, including, for example, the following markets: Canada, The United States, Chile, Iceland, Norway, THE EU, Morocco, Switzerland, Montenegro, Turkey, Armenia, Russia, Kazakhstan, Tajikistan, kyrgyz Republic, India, China, Thailand, the Republic of Korea, Japan, Taipei, Australia and New Zealand. To access the database, click here. South Africa`s mines employed a significant number of miners of Mozambican origin for many decades, which led to the repatriation of deferred payment of wages, which were a valuable source of income for the Mozambican economy. Hover over the number of a dispute in the table below to see the title of the dispute. Click the dispute number to go to a page with detailed information about the dispute. .