Brexit would badly affect SA’s economy: Davies

SABC News Rob Davies - Brexit would badly affect SA’s economy: Davies

Trade and Industry Minister Rob Davies has detailed the negative impact the approval of Britain’s request to withdraw from the European Union by the end of March will have on South Africa’s economy.

He has warned that South Africa’s motor industry is likely to be the most affected.

Davies was briefing the media in Cape Town on the meeting of the roll-over of Economic Partnership Agreement between the Southern African Customs Union, Mozambique and the United Kingdom.

On Tuesday, the British Parliament is expected to vote for the third time to seek an extension to the date to withdraw from the EU.

Davies says if the so-called worst case scenario materialises and the UK manages to exit the EU without a deal, the local motor industry will be hard hit.

“It will mean difficulties for the auto motor industry. But those difficulties will be small to bear compared to difficulties the auto industry in the Europe, as a whole, is going to experience. We have some plants situated in Europe. We have some plants situated in the UK. So, how is that going to be managed? So, it’s not just cars that will go from one country to another. It is components that will go from one country to another. It’s going to be a massive challenge if the worst case scenario unfolds. “

 

 

 

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