The Trade Agreement between South Africa and European Union

Presented by: Gert van Rensburg Directorate: International Trade

Content

• Background • Overview of the agreement • Normal (MFN) Duties vs TDCA Duties • Market Access Requirements

Background

• EU is SA’s main trading partner (+- 42% of SA agri exports) • EU consists of 27 Member States • The most important agricultural products SA exported to the EU in 2008 Wine Fresh Grapes Fresh Oranges Fresh Apples Fresh pears and quinces •

SA trade with the EU under the agreement called the Trade, Development and Cooperation Agreement (TDCA)

The European Union (EU)

Overview of the TDCA

• TDCA entered into force in 2000 • Tariff changes - from immediate tariff reduction, up to the reduction in tariffs over 10 years for imports into the EU and 12 years for imports into South Africa • 70% of agricultural imports into SA will be duty free after 12 years.

• 61% of agricultural imports into the EU will be duty free after 10 years (72% if partial liberalization quotas are included).

Normal Duties (MFN) vs. TDCA Duties (

http://ec.europa.eu/taxation_customs/dds/home_en.htm)

(Note the duty may be different at certain periods in the year)

Product code

02089030 08051020

Description

Of game, other than of rabbits or hares Fresh sweet oranges

080520

0805205007 0805203005 0805201005

070110

Mandarins Fresh Monreales and Satsuma's Fresh Clementine's

Potatoes - seed

MFN (Normal) duties TDCA duties

0% 3.20%

16.00%

4.50% 0% 0%

1,60%

0%

Duty reduction schedule of EU : (Annex IV)

 TDCA consist out of various Annexes with lists in each Annex  For your purposes, Annex IV is important  There is zero duty for the imports of products in lists 0 and 1  Lists 2 to 4 - import duty reduce in equal steps until 0 duty in 2010  List 5 (processed agricultural products) - a fixed duty that is partially liberalized  List 6 (tariff quotas) – Tariff preferences on limited quantities  List 7 & 8 (reserve and omission list) - excluded from tariff liberalization

Market Access Requirements

• To qualify for lower duties under the TDCA: - Rules of Origin (SARS Website) - Sanitary and Phytosanitary (SPS) measures and technical standards - Follow - procedures for the application, administration and allocation of export permits if you want to make use of quotas - Euro 1 form must accompany each consignment (SARS) • Full agreement is available online: www.sars.gov.za and follow the links: Customs and Excise; Trade; Trade agreements

For more information contact

• Directorate: International Trade (Europe Desk) of DAFF Tel: 012 – 319 8452 • E-mail: Ms J Letswalo – [email protected]

Ms L Rantho – [email protected]

Mr L Aphane – [email protected]

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Thank you