Cargo To Africa

Tag: Brexit

  • Cargo Trade Agreements Between UK and South Africa

    Especial emphasis is being put on the future of trade relations after Brexit

    South Africa is the largest trade partner of UK and the second largest in EU. With such a big trade relations to both the sides, there are certainly insecurities that are leading to more and more meetings between the two countries regarding the arrangements that are to be made to lessen the effect of Brexit on trade of both the countries. An interim arrangement was being discussed based on the already existing EU partnership deal. This is to ensure that the transfer will not hurt the trading relation and the procedure will be smooth and without complications to streamline Cargo to Africa. Because both are strong trade partners, such actions are obligatory to ensure harmony.

    An Intelligent Decision is needed:

    What is expected from both the sides is to take this time period as a fruitful era. There are still two years before Brexit and lot will be decided by UK as well the trading partners. There will be a total loss if there is any decision that can harm these trade relationships in any way. Both UK and South Africa are in very good positions to reach a point where both can prosper more in trade and make most out of the situation.

    The increasing meetings and revising agreements are very important steps and both the countries should act wisely to reach an interim agreement that will support the trade and cargo from both means like sea cargo and air cargo, while the situation becomes clear after a hard or soft Brexit whatever the case is. Countries are trying to secure their relations with UK to make things move as they are and not have any harm due to the process.

    What is UK expecting of South Africa?

    Many of us always talk about the other countries but what about UK? While others are making arrangements to secure their ends, UK also demands something in return. There are tariff rates which are fixed for the domestic commodities to save them from the competitive imports in the economic partnership agreement of EU. Lower tariff is applied on those products to come in but in certain quota, any volume above the decided one is considered prohibitive traffic.

    UK wants SA to discuss this point that tariff rate volumes remain the same and not decrease after Brexit. EU has not increased them even if there is an increase in the members so the expectation form the UK side is that South Africa will not reduce it when the time comes.

    Ensuring uninterrupted Trade:

    Because of such strong ties, none of the two parties want to have a negative effect of Brexit on the trade side. The interim arrangement will ensure that the trade between the two countries remains smooth and uninterrupted. A halt in the trade will mean a heck of loss for both the sides.

    The increasing meetings and this arrangement also hints towards how important are these two countries for each others trade. The South African Customs Union (SACU) has already sent a letter to UK to make a suggestion of discussions between the two nations to establish an interim agreement to avoid any distasteful experiences for both sides in terms of trade.

  • UK Reaffirming Trade Relations with Africa

    A new trade relation is said to trigger after Brexit

    Africa is not a highly developed region. Most areas in this region are underdeveloped and rely highly on foreign aid. So it can be said that the extreme conditions in African states decide the trade, especially in areas that are largely affected by draught and malnutrition due to absence of enough food. The higher spectrum is represented by South Africa that is the leading trade body in the region, while areas like Burundi have the least trading power.

    Countries that rely heavily on imports and cargo services to run the state are always insecure due to changing deals internationally; so is the case with Africa. The uncertain conditions prevailing after the announcement of Brexit has raised questions and UK is leaving no stone unturned to convey a firm message of no harm to be established on its relationship with African countries.

    Internal Issues:

    African extremity struck regions always faces the misfortune of not having enough food and life facilities to move forward. The internal problems grip the region so tightly that coming out becomes impossible and foreign aid becomes the only means for relief. So the African countries which are underdeveloped, import medicines as well as food items to survive such a tough life.

    These problems hinders the way for this region to develop fully as it is rich in its natural resources but without a proper infrastructure and policy, the people cannot fully take advantage of its own wherewithal. Machinery and equipments are regularly imported with the notion of having access to its resources with the help of these equipments.

    Brexit and the uncertain trade environment answered:

    UK has never denied having a positive and growing trade relation with Cargo to Africa. It has been cleared that Brexit means exit with Europe and not with Africa. This clearly indicates that in no condition UK has the idea of breaking ties with commonwealth countries in Europe. The delegation to Africa has affirmed that it will not end its commitment to the continent. Furthermore delegations to different regions in the continent are being sent by the African states so that a positive message can be conveyed of the firm relations of UK and the region.

    Relations with South Africa:

    The UK government has laid special emphasis on its relations with South Africa which is its largest economic and political partner in the continent. As being the main contributor in the economy of Africa and a developed region in this continent, it attracts trade from around the world. This region is very important for the economy of this continent. The present Prime Minister of UK has said very clearly that her government does not intend to become isolated from the world and follow the foot steps of others.

    Importance given to Africa by UK:

    The importance of trade between Africa and UK can be clearly seen by the visit of UK officials to the continent especially South Africa.

    This was a short visit and was carried out immediately after the announcement of Brexit. The other two countries that were visited on that short trip were Japan and South Korea. These and future tours were meant to confirm strong ties of UK globally.

  • Focus on Trade with Africa to Increase Cargo Business

    Airlines are spreading their network throughout the continent

    Recently many assurances have come forward by authorities in United Kingdom that there would be no big change in trade relations of the country with South Africa and other countries of the region after Brexit. It means no downward trend will be observed even some experts have predicted that there would be possible increase in business volume between the regions.

    Most of big industrial countries and their airlines have been eying at the future of African markets so they continue to move on with their plans to spread out network so that they can take advantage of their strong base in coming years. New destinations have been added in list of many renowned airlines that have aspirations to focus on eastern Africa in coming years. In this way the basics have been getting right to launch this forgotten continent as potential market for multinational companies.

    High end products and perishables

    At present, the continent imports are expensive and high end products and exports consist of perishables. Trade from UK to Africa is no exception, so the freight forwarders are very much aware of the flexibility and volatile conditions of this route.

    For this, air cargo is much more important than other means of cargo. Government support is necessary for success of making this growing market into a reliable source of agricultural products. Mainly the region sends yield of fields so to enhance the production required measures always come from authorities in power. Economic cycle pushes each segment to boost the whole economy that ultimately produces strong middle class with reasonable power to buy things.

    Cargo Transportation Volume

    There are many efforts on behalf of trade ministers of both sides to explore all possible sectors of trade and industry that could be venues of cooperation in order to increase volume to its actual potential. The future of digital economy has been eyed at so focus would remain to transform the overall perception by including modern technology at every level.

    This flow of modernity surely is from UK to African nations. Small and medium sized businesses are getting assistance, business environment has been encouraging and access to finance has been made easy. With such crucial and basic steps local industry would create jobs for people in Africa.

    Spotlight Back on Commonwealth Nations

    Before joining the European Economic Community decades ago in 1973 goods transportation were mainly with Commonwealth nations but afterwards all those arrangements were undermined by this economic confederation. Now once again concentration is back on the same to keep industry in England worth producing jobs and revenue.

    Reallocation of resources from previous routes to the new destinations is also requires serious effort but usually there is flexibility to do so. After being free from rigorous and strict rules of food imports of food items of European Union there is likelihood of getting in agreements with African nations for import of those items that have limited shelf life. For this purpose there should have been suitable facilities at freight forwarding points so that the quality may sustain for the end consumer.