Trade Agreements

What is a Trade Agreement?

Trade Agreements are agreements or partnerships between two or more countries for mutual trade benefit. The partnerships determine the duties and levies that countries impose on imports. Goods that have been approved are exported by South African traders, who have these registrations, pay less import duties in partnered countries. This ensures that the buyer’s import costs are lower, and it makes the exporter a more competitive seller in the international market.

A Trade Agreement exists when two or more countries agree on terms that help them trade with each other. The most common trade agreements are of the preferential and free trade types, which are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories.

Trade Agreements don’t just reduce and eliminate duties, they also help address behind-the-border barriers that would otherwise impede the flow of goods and services; encourage investment; and improve the rules affecting such issues as intellectual property, e-commerce and government procurement.

Trade Agreements are binding treaties between countries that open markets to businesses by addressing trade barriers, such as tariffs and non-tariff barriers. They create more predictable and transparent conditions for businesses operating in foreign countries.

SADC – for trade with other Southern African nations. Get your SADC Certificate now and benefit from trading with other African Nations. 
SADC-EU – for trade with the European Union
SACUM-UK – for trade with the United Kingdom
EFTA-SACU – for trade with Iceland, Liechtenstein, Norway and Switzerland
AfCFTA – for trade with participating members of the African Union

International trade agreements come in many forms, including the General Agreement on Tariffs and Trade (GATT) and the agreement between Mercosur and the European Union. These agreements help countries streamline the process of trading across borders by minimising regulatory obstacles.

Trade agreements are designed to foster international trade by eliminating or reducing trade barriers like tariffs, duties, and import quotas. This economic strategy is intended to stimulate business growth by making cross-border trading simpler and less expensive.

Trade agreements can be divided into three main varieties:

1. Bilateral Trade Agreements — Deals between two specific countries.
2. Multilateral Trade Agreements — Involving three or more countries.
3. Regional Trade Agreements — Targeting economic integration within a specific region.

AGOA stands for the African Growth and Opportunity Act. This U.S. policy framework provides eligible African countries with duty-free access to the American market. It’s designed to encourage export-led growth and economic development in Sub-Saharan Africa.