Transcript Slide 1
South Africa and European Union FTA Presented by: Gert van Rensburg Directorate: International Trade Content • Background • Overview of the agreement • MFN Duties vs. TDCA Duties • Specific benefits and opportunities • Market Access Requirements 2 Background European Union (EU) is the main trading partner of SA (45% of SA agricultural exports in 2007) EU consists of 27 Member States (Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Romania and Bulgaria) The 4 most important agricultural products exported to the EU in 2007 Wine R 2 669 million Fresh Grapes R 1 809 million Fresh Oranges R 1 301 million Fresh Apples R 878 million SA trade with the EU under the agreement called the Trade, Development and Cooperation Agreement (TDCA) 3 4 Overview of the TDCA TDCA was signed in 1999 and entered into force in 2000 The period of tariff changes is from immediate tariff reduction, up to the reduction in tariffs over 10 years for imports into the European Union and 12 years for imports into South Africa 70% of imports of agricultural products into SA will be duty free after 12 years. 61% of imports of agricultural products into the EU will be duty free after 10 years (72% if partial liberalization quotas are included). 5 MFN Duties vs. TDCA Duties Product code Description MFN duties TDCA duties Other meat and edible meat 0208 offal, fresh, chilled or frozen Of game, other than of rabbits 6 02089030 or hares 0805 Citrus fruits 08051020 Fresh sweet oranges 080520 Clementine's, Monreales and Satsuma's, Mandarins and Wilkings, Tangerines, Other 070110 Potatoes - seed 07051100 Cabbage lettuce (head lettuce) 0% 0% 3.20% 0% 16.00% 3.50% 4.50% 0% 12.00 % MIN 2.00 EUR / 100 kg/br 2.60% Duty reduction schedule of EU : (Annex IV) List in Duty Explanation TDCA List 0 & 1 Zero duty Products enter the EU already free e.g. margarine List 2 - 4 Duty reduce in Tariff duty will be zero on 1 January 2010 e.g. equal steps until 0 sunflower seed, cabbage & apricots duty in 2010 List 5 Fixed duty Processed agricultural products – buttermilk & chocolate List 6 Partial duty Tariff quotas – cheese and curd, cut flowers, canned liberalisation pears, apricots and peaches, fruit juices and wine List 7 & 8 MFN Duty Reserve and omission list Excluded, but reserve list is open for review e.g. maize (reserve list) & sparkling wine (omission 7 list) Market Access Requirements To qualify for lower duties under the TDCA Comply with Rules of Origin - the Euro 1 form must accompany each consignment (available from local SARS office). Complete Rules of Origin can be obtained from the DTI, Foreign Trade Relations, Europe Desk Comply with animal and plant health (SPS) measures and technical standards of the European Union (Dir. Veterinary Services and/or Dir. Plant Health of DoA) You must comply with the procedures for the application, administration and allocation of export permits if you want to make use of quotas (Dir. Marketing of DoA) Full agreement is available online: www.sars.gov.za and follow the links: Customs and Excise; Trade; Trade agreements 8 For more information contact Directorate: International Trade 9 Tel: 012 319 8452 Fax: 012 319 8001 E-mail: [email protected] ..... Thank you Enkosi Dankie 10