The trade relationship between SADC member states and SADC’s relationship with the European Union is the focus of this update. A number of Trade negotiations are in progress between southern Africa and its major trading partners. The implementation of the SADC free trade protocol and the negotiations between the European Union and South Africa to establish a FTA as well as several other negotiations is being discussed. A number of stumbling blocks are creating problems for the establishment of relationships with the EU and this has an impact on foreign investment. Once implemented, all the agreements should benefit the SADC member states, but protective measures should exist to protect fragile industries.