UK reaches post-Brexit deal with Sacu and Mozambique
The five members of the Southern African Customs Union (Sacu) and Mozambique have reached a deal with the UK to govern trade between them after Brexit.
The new agreement mirrored the deal between those countries and the European Union and would come into effect if the UK left the bloc on October 31, South African Trade, Industry and Competition Minister Ebrahim Patel said this month.
The deal would be submitted to Cabinet for approval and then be ratified by Parliament.
Sacu is the world’s oldest customs union and the four smaller members – Botswana, Lesotho, Namibia and eSwatini – derive 30% to 40% of their government revenue from a customs-sharing pool that gains and falls on South African trade. South Africa recorded its first quarterly trade deficit in more than a year in the three months to June, widening the current-account shortfall.
The fortunes of Lesotho, Namibia and eSwatini are also beholden to developments in South Africa. with their exchange rates pegged to the rand.
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