EFTA-SACU FREE TRADE AGREEMENT (FTA)

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EFTA-SACU FREE TRADE AGREEMENT EFTA-SACU FREE TRADE AGREEMENT (FTA) (FTA) Xolani Nqaba Directorate: International Trade

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EFTA-SACU FREE TRADE AGREEMENT (FTA). Xolani Nqaba Directorate: International Trade. Content. 1. Overview of the EFTA-SACU FTA 2. EFTA’s agricultural trade relations 3. Market Access Requirements/Procedures 4. Conclusion 5. Contact Details. 1. Overview of EFTA-SACU FTA. What is EFTA? - PowerPoint PPT Presentation

Transcript of EFTA-SACU FREE TRADE AGREEMENT (FTA)

Page 1: EFTA-SACU FREE TRADE AGREEMENT (FTA)

EFTA-SACU FREE TRADE EFTA-SACU FREE TRADE AGREEMENT (FTA)AGREEMENT (FTA)

EFTA-SACU FREE TRADE EFTA-SACU FREE TRADE AGREEMENT (FTA)AGREEMENT (FTA)

Xolani Nqaba

Directorate: International Trade

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ContentContent

1. Overview of the EFTA-SACU FTA

2. EFTA’s agricultural trade relations

3. Market Access Requirements/Procedures

4. Conclusion

5. Contact Details

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1. Overview of EFTA-SACU FTA1. Overview of EFTA-SACU FTA

What is EFTA?

EFTA membership: Norway, Iceland, Switzerland and Liechtenstein.

The European Free Trade Association (EFTA): set up for the promotion of free trade and economic integration.

Major net-importers of agricultural products.

EFTA is an important trading partner of SACU.

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1. Overview of the FTA Cont…1. Overview of the FTA Cont…

EFTA - SACU negotiations launched in 2003.

The Free Trade Agreement (FTA) signed in June 2006 and entered into force on 1 May 2008.

Agreement to be gradually implemented over a period of nine years.

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Structure of the FTAStructure of the FTA

EFTA-SACU FTA

Main Agreement3 Complimentary

Bilateral Agreements

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1.1 Agricultural agreements1.1 Agricultural agreements

Trade in Agricultural Products

Processed agricultural products covered in the Main agreement

Primary/basic agricultural products covered in separate bilateral agreements between individual EFTA countries and SACU.

Lists of products for which the partner countries grant preferences to one another found in the annexes of the agreements.

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1.2 Specific benefits and opportunities1.2 Specific benefits and opportunities

Duty-free access for all products covered by the Main agreement, with the exception of processed agricultural products.

Bilateral agreement with Switzerland:

Better market access for canned oranges, mandarins and apricots.

Duty free access for canned peaches, pineapples, grapefruit and lemons.

Cider apples and apples for distilling duty free within the limits of Switzerland’s World Trade Organisation (WTO) market access quota.

Bilateral agreement with Norway:

Duty free access for canned fruit: - Pineapples, Pears, Apricots, Peaches and Mixtures entirely containing certain fruits.

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Specific benefits and opportunities Cont…Specific benefits and opportunities Cont…

Bilateral agricultural agreement with Iceland:

Duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.

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2. EFTA’s agricultural trade relations (R millions)2. EFTA’s agricultural trade relations (R millions)

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100150200250300350400450500

2006 2007 2008Years

Exp

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SA exports to EFTA SA Imports from EFTA Trade Balance

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2.1 South Africa’s export of fruit, vegetables and canned fruit to Switzerland in Kilograms (2003 – 2008)

2.1 South Africa’s export of fruit, vegetables and canned fruit to Switzerland in Kilograms (2003 – 2008)

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2000000

4000000

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10000000

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Vegetables 424246 320540 307886 386405 422882 337942

Edible Fruit and Nuts 2638282 8349807 11599253 7061906 4072591 3992789

Canned Fruit 11225770 10614888 9059952 8764896 9694313 4900950

2003 2004 2005 2006 2007 2008

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2.2 South Africa’s exports of fruit, vegetables and canned fruit to Norway in Kilograms (2003 – 2008)

2.2 South Africa’s exports of fruit, vegetables and canned fruit to Norway in Kilograms (2003 – 2008)

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1000000

2000000

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Vegetables 564559 117277 0 0 1141 22950

Edible Fruit and Nuts 2493920 3854194 5469775 4732169 6322422 9315199

Canned fruit 77596 145350 78497 43169 272285 178073

2003 2004 2005 2006 2007 2008

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2.3 SACU’s competitors to the EFTA market in 20082.3 SACU’s competitors to the EFTA market in 2008

EU 2773%

Rest of the World14%ECOWAS

0%NAFTA4%

ASEAN 102%

Mercosur6%

SACU1%

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3. Market Access Requirements/Procedures3. Market Access Requirements/Procedures

Compliance with:

Rules of Origin and Customs procedures

Sanitary and Phytosanitary (SPS) measures

Technical regulations

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4. Conclusion4. Conclusion

Need to make the best use of the FTA

Export volumes of canned fruit have consistently decreased (2003 – 2008)

Intensify exports of higher earning products

Keep Exporting!

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5. Contact details5. Contact details

1. For SACU-EFTA FTA visit:

www.sars.gov.za and follow the links: -

Customs and Excise; Trade; Trade agreements

2. www.efta.int

3. www.sacu.int

4. Joyce Letswalo or Xolani Nqaba or Guguletu Mqambalala

Directorate: International Trade (012) 319 8007 or 319 8020 or 319 8009

[email protected] / [email protected]

www.daff.gov.za

Thank you

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South Africa’s export of fruit, vegetables and canned fruit to Switzerland (2003 – 2008) in R millions

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10.000

20.000

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40.000

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60.000

70.000

80.000

Edible Fruit and Nuts 24.314 53.143 59.016 76.884 59.368 73.752

Vegetables 7.393 8.408 8.879 10.930 9.623 9.373

Other Fruit,Nut 71.942 67.146 61.205 59.286 77.097 45.129

2003 2004 2005 2006 2007 2008

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South Africa’s export of fruit, vegetables and canned fruit to Norway (2003 – 08) in R millions

0.000

10.000

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30.000

40.000

50.000

60.000

70.000

Edible Fruit and Nuts 11.262 22.273 28.507 25.214 45.877 64.897

Vegetables 4.017 0.436 0.000 0.000 0.011 0.056

Other Fruit,Nut 0.585 0.584 0.557 0.311 2.697 1.709

2003 2004 2005 2006 2007 2008