In terms of the Economic Partnership Agreement (EPA) signed in Kasane, Botswana, between the European Union (EU) and the Southern African Customs Union (SACU), the country’s present annual duty-free quota of 48 million litres wine that can be exported to the EU, will rise to 110 million litres. Although South Africa exports worldwide, the EU is by far the wine industry’s biggest export destination, accounting for 74,8 % of annual off-shore sales volumes, worth R5,01 billion.
Michael Mokhoro, the stakeholder relationship manager for South Africa’s wine and brandy industries, said the EPA, which was finalised in July 2014, needed to be ratified before the end of September, in order to take effect from October this year. He said each of the SACU countries – South Africa, Namibia, Lesotho, Swaziland and Botswana – would first have to individually ratify the agreement through their respective Parliamentary processes. The EU Parliament would ratify the deal on behalf of its 28 member states.
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