An economist says South Africa's agricultural products are set to benefit the most from the China-Africa Economic Partnership Agreement.

This agreement, which came into effect on Friday, allows goods from South Africa and 52 other African countries to enter China without paying tariffs.

Tariff-free trade boost

Chief Economist for the Agricultural Business Chamber of South Africa, Wandile Sihlobo, says the country's agricultural products have struggled with higher tariffs in China.

He says the tariffs made them less affordable compared to products from countries with existing trade agreements.

Sihlobo says removing these tariffs will improve the competitiveness of South African goods.

“If you were a wine producer in South Africa and trying to sell your wine to China, you would be experiencing tariffs of between 14% and 20%, depending on whether that wine is bulk or bottled. If you're farming macadamia in KZN or Mpumalanga, if you're trying to sell that macadamia to China, you were experiencing tariffs of about 12%.

“Now you will be entering it tariff-free, and that means then it will be very positive for these industries.”

Two-year trade window

Sihlobo says the agreement will last two years.

“When it goes to the reciprocity side, there may be some difficulties because remember, South Africa has a lot of industries that are interested in exporting to China.

“But the reality is that when we then also are at a position where we have to offer China what they have offered us in the next two years, that begins then to introduce a lot of competition for some that are in the manufacturing, that are in the auto industry.

“And so there are still difficult conversations to be had, but that is not by any means to pour water onto the current celebration.”