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
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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)
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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).
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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
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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
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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
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For more information contact
Directorate: International Trade
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Tel:
012 319 8452
Fax:
012 319 8001
E-mail:
[email protected]
.....
Thank you
Enkosi
Dankie
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