Mozambique begins applying Southern African Economic Partnership Agreement
Mozambique begins applying Southern African Economic Partnership Agreement (EPA)
On 4 February 2018, Mozambique began provionally applying the EPA between the European Union and the Southern Africa Development Community (SADC), making the agreement the first regional EPA in Africa to be fully operational. Mozambique was the last piece of the SADC-EPA jigsaw to fall into place. The other five SADC EPA countries - Botswana, Lesotho, Namibia, South Africa and Swaziland - have been implementing the agreement since October 2016.
Africa is a rising continent and the EU is its largest export market and main customer. Trade between the EU and the SADC EPA countries accounts for Euro 53 billion annually; exports to the EU represent 22% of SADC EPA countries' export. The EU-SADC EPA provides opportunities for SADC countries to attract more investment, industrialise, integrate into global value chains and create jobs. On the EU side, European businesses are increasingly investing in the region.
Implementing the EPA means that the EU guarantees that Mozambique will not have to pay customs duties on its exports to the EU. For its part, Mozambique will progressively reduce or eliminate customs duties for a significant share of EU exports. Trade between the EU and Mozambique is currently about Euro 2 billion annually. Mozambican exports to the EU include aluminium, raw cane sugar and tobacco. The EU exports to Mozambique include a variety of products, in particular medicines.
For more information:
Economic Partnership Agreement with southern African countries enters into effect