Name: Tran Thi Thanh Tam

Class: KT43A
Student code: KT43A-032-1620

NEW REPORT

UK 'trade continuity' with six African nations

The UK has signed an economic partnership agreement with the Southern
African Customs Union and Mozambique (SACU+M), which the government says
will allow business to keep trading freely after Brexit.
It allows businesses to continue to trade on preferential terms with South
Africa, Botswana, Lesotho, Namibia, Eswatini and Mozambique, to which the UK
exports machinery and mechanical appliances. Trade between Britain and the six
countries was worth 9.7 billion pounds ($12 billion) last year, with machinery and
motor vehicles topping British exports to the region. The UK meanwhile imported
some 547 million pounds worth of edible fruit and nuts.
Liz Truss, international trade secretary, said: "This is a major milestone as the
UK prepares to become an independent trading nation once again, and we are
helping businesses get ready to trade with the most exciting markets around the
world."
Why UK signed trade agreement with six African nations?
Firstly, this trade agreement, once it is signed and takes effect, will allow
businesses to keep trading after Brexit without any additional barriers.This is a
major milestone as the UK prepares to become an independent trading nation once
again, and we are helping businesses get ready to trade with the most exciting
markets around the world. As well as benefiting British businesses, this will also
support developing countries in reducing poverty through trade. They will be able
to grow their economies, create jobs and increase incomes for their citizens.
The second reason is the potential of Africa. The stakes in Africa are high due
to the continent's rich abundance in raw materials. Africa is estimated to contain
90% of the entire world supply of platinum and cobalt, half of the world's gold
supply, two-thirds of world manganese and 35% of the world's uranium. It also
accounts for nearly 75% of the world's coltan, an important mineral used in
electronic devices, including cellphones. Moreover, mining and oil remain the
primary focus of some developed countries to make use of.
Last but not least, Africa is the important market for selling weapons which
all of developed countries are interested in.