When last did you joyously utter – no, shout out loud – “Block 1, 2, 3, in, save all”, thus freeing everyone who was previously caught, or did you simply yell “Block 1, 2, 3, out”, waking up the neighbourhood on a sleepy Sunday afternoon in the process?

If you are not of that age, this was a classic childhood outdoor game similar to a combination of hide-and-seek and tag that was called “Block 1, 2, 3”.

Speaking about waking up the neighbourhood and, more specifically, the export community, if you are part of it, how familiar are you with the block exemption, which enables South African exporters to collaborate in pursuing foreign markets? The exemption will not be of benefit unless full use is made of the regulation. It is a legal framework under competition law that allows competing businesses to collaborate in foreign markets without being penalised for anticompetitive behaviour.

At a Department of Trade, Industry and Competition (dtic) public webinar co-hosted with the Competition Commission of South Africa on August 31, the dtic director: export development and support reminded attendees of its publication and much more.

The Block Exemption for the Promotion of Exports 2025, promulgated by the Trade, Industry and Competition Minister under the Competition Act, 1998, provides for specified categories of collaboration in export markets that are exempt from certain provisions of the Act. It was assented to on November 27, 2025, and entered into operation on December 12, 2025, when it was published in the Government Gazette.

According to the dtic, the categories include opportunities for qualifying exporters to achieve economies of scale and efficiencies, share certain landed costs, access export-related infrastructure and market information, coordinate logistics, collectively market South African goods, and jointly negotiate with or contract with foreign buyers, where permitted.

The promulgation of the exemption is a direct policy response to deteriorating global trade conditions, allowing competing export firms to cooperate in seven specific areas to overcome global tariff shocks and high logistics costs: economies of scale, landed costs, export infrastructure, market information, logistics, collective marketing, and joint negotiation. It is a proactive legal mechanism that enables South African firms to strategically coordinate in export markets without breaching domestic competition law.

According to the dtic’s director, South African companies share joint responsibility with government to broaden and strengthen the export ecosystem, the object being to ensure that exporters understand the opportunities available to them and to help grow the economy. The director emphasised the important role of export councils, industry associations and provincial export-support agencies in identifying such opportunities, given their knowledge of businesses and sector-specific challenges.

The director added: “The Block Exemption should be linked to the broader support available to exporters through the dtic and its partners, including the Export Help Desk, export councils and provincial partner networks, market intelligence, training, coaching and mentorship, incubation and acceleration programmes, business-to-business matchmaking and EMIA market-access support. South Africa’s exports are still largely driven by larger firms, while smaller businesses remain less active in international markets. So, the opportunity before us is not simply to get more businesses into markets. It is to help businesses enter, compete, retain and grow in those markets. We need to think differently about the export ecosystem. A single company may struggle with the costs of areas such as market research, overseas warehousing, logistics, and international marketing. But collectively, there may be opportunities to share certain costs and activities, where permissible under the regulations.”

A parting thought: the dtic and the Competition Commission encourage exporters and export-support formations to familiarise themselves with the requirements and limitations of the Block Exemption before entering into collaborative arrangements.

The exemption applies to qualifying activities within its scope and does not provide a blanket exemption from competition law.

On a personal note: This instalment of this column, largely my weekend endeavour, is the first I have written with an empty space beside me where my extremely patient assistant, our family’s Havanese Pacina, once lay. Her name, the female form of Pacino, comes from the Latin ‘px’, meaning “peace, calm, tranquillity”. Your three-and-a-bit years were much too short. I promise to honour the author JW Stephen’s sentiment and strive to be the person you thought I am.