Though it appears that the EU is actually losing out by the deal, this is because the EU is much larger and more powerful than SA and can afford to make these sacrifices. South Africa has recently become a significant manufacturer of cars, with both major German and US carmakers producing vehicles there. Currently, automotive goods represent more than 20% of EU exports to South Africa with the EU representing the African nation’s largest trading partner.
The EU and South Africa said on Tuesday they would start negotiations to review their trade and development agreement.