EU-South Africa Free Trade Deal Boosts Economy, But Growth Remains Modest
The EU-South Africa Free Trade Agreement is expected to boost South Africa's economy, but the growth benefits are limited. The agreement will increase South African output and welfare, but only by a small amount compared to overall economic growth. Trade with the EU will contribute to just 2% of South Africa's growth over the next 18 years. The slow implementation of the agreement and partial benefits of regional trade mean that trade won't be a major driver of South Africa's economic growth.