EFTA,Turkey and EUROMED AgreementsIsabelle Ramdoo, ECDPMMEXA Workshop, 27 July 2012Labourdonnais Hotel

EU Trade Policy

European Free Trade Area EFTA and the EUEFTA as a potential market

TurkeyEU Turkey Customs UnionTurkey Mauritius FTATurkey safeguard on woven fabrics and apparel

Euromed AgreementsTunisia Morocco Egypt

EU South Africa : TDCAOverview of PresentationPage *ECDPM

ECDPM

EFTA and the EU

The 4 EFTA countries are Iceland, Liechtenstein, Norway and SwitzerlandThey signed an European Economic Area Agreement in 1994 with the EU, allowing them to participate in EUs internal market It covers free movement of goods for industrial products. Tariff reductions are applicable for agriculture and fish and fish products

EEA is not a customs union, and therefore each EFTA country applies its own rate of duty to all third countries.

European Free Trade AssociationECDPMPage *

Tariffs applied by EUFish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedEEA5.4%7.2%7.2%MFN18.0%24.0%24.0%EPA Mauritius0.0%0.0%0.0%

ECDPM

EFTA as a potential market: trade relations with third countries

EFTA has concluded 24 FTAs with a total of 33 partner countries and territories outside the EU: Albania, Canada, Chile, Colombia, Croatia, Egypt, the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), Hong Kong, Israel, Jordan, Korea, Lebanon, Macedonia, Mexico, Montenegro, Morocco, Palestinian Authority, Peru, Serbia, Singapore, the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa and Swaziland), Tunisia, Turkey and Ukraine.

Negotiations are on going with Bosnia, Central American States, India and Indonesia, Russia, Belarus and Kazakhstan. Negotiations are expected to be launched with Vietnam.

EFTA has signed a Joint Declaration on Cooperation with Mauritius. This is not an FTA

FTAs provides for free trade in industrial goods, including fish and other marine products; and tariff reductions in processed agricultural products;

ECDPMPage *

ECDPM

Imports of textiles from selected EFTA countries :Norway

ECDPMPage *

NorwayYarnCotton FabricDenim FabricT Shirts CottonT Shirts Man madePull WoolPull CottonTrousersShirts CottonTotal imports (' 000)2,54310927105,447148,4322,520138,633146,05173,272China1.5%18.3%18.5%32.0%34.1%35.8%61.3%25.3%41.0%Bangladesh25.2%13.1%11.1%5.8%Turkey14.4%18.4%7.1%15.7%6.7%Germany48.6%Italy 18.6%18.5%5.3%12.6%11.2%2.0%tunisia6.4%Pakistan6.0%India5.1%1.9%2.8%14.6%UK13.0%16.5%Lithuania12.1%1.6%Peru6.0%US15.6%Sweden13.8%3.7%8.3%Hong Kong18.0%

ECDPM

Tariffs applied by Norway on textile productsECDPMPage *

Norway TariffsYarnCotton FabricDenim FabricT Shirts CottonT shirts man madePull woolPull cottonTrousersShirts cottonMFN0.0%0.0%0.0%10.7%10.7%10.7%10.7%10.7%10.7%GSP Rate (including MRU)0.0%0.0%0.0%10.7%10.7%10.7%10.7%0%0%LDCs0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Countries having FTAs with NorwayEgypt0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Morocco0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Peru0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Mexico0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%SACU0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Tunisia 0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Turkey0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%

ECDPM

Norway GSP Scheme and Rules of OriginGSP applies to all developing countries

Coverage:Prepared or preserved fish benefit from 100% reduction from MFNT-shirts, jerseys and pulls (Ch 61.09; 69.10) are excluded from GSP Trousers and shirts (Ch 62) : GSP = 0%LDCs have duty free, including from excluded products

General RulesChange in tariff heading i.e when all the imported materials (non-originating materials) used are classified in a HS tariff heading (4 digits) different from the tariff heading under which the exported product is classified, except when specified in the specific rule Chapter 3 : fresh fish wholly obtained; Chapter 16: Canned tuna, prepared, preserved fish: fish to be wholly obtained.Yarn: silk manufacture from raw silk; Woven fabric manuf. from natural fibres (double stage transformation)T shirts & pull (Ch 61) Manufacture from natural fibresShirts (Ch 62) Manufacture from yarn (double stage transformation)

ECDPMPage *

ECDPM

Value tolerance 10% of ex works price (except where specified otherwise)

Cumulation: All countries must be GSP beneficiary; 3 types:Bilateral with NorwayRegional between developing countries forming a regional grouping, at the request of the country and upon approval. Diagonal between Norway, EU and Switzerland and beneficiary country (except in Ch 1 24). It implies that materials originating in Norway, EU and Switzerland can be incorporated in goods produced in a GSP country, when the final product is exported to Norway, EU and Switzerland.

Derogation possible for LDCs only, if justified for economic development purposesECDPMPage *

ECDPM

Switzerland Textile imports from main marketsECDPMPage *

SwitzerlandYarnCotton FabricDenim FabricT Shirts CottonT Shirts Man madePull WoolPull CottonTrousersShirts CottonTotal imports ( '000)3,1729,427314190,532114,0525,453409,445379,964165,403China6.4%4.5%4.3%8.0%12.4%11.2%7.8%Bangladesh9.2%11.2%8.4%7.1%Turkey4.5%4.5%5.1%3.4%9.9%Germany30.6%11.6%44.9%38.7%55.0%26.4%36.8%29.2%Italy 3.0%44.1%7.9%6.0%53.1%12.4%21.1%Belgium13.7%France22.5%4.2%3.7%7.7%5.7%Madagascar3.8%Japan17.8%Spain7.3%Austria13.5%India4.8%8.8%4.5%Pakistan3.7%UK5.8%Denmark26.5%Peru4.0%Estonia19.1%

ECDPM

Tariffs applied by Switzerland: Note duties are specificECDPMPage *

SwitzerlandYarnCotton Fabric*Denim Fabric*T Shirts CottonT Shirts Man madePull WoolPull CottonTrousersShirts CottonMFN DutyCHF 26 - 46/100 kgCHF130/100 kgCH 75/100 kgCHF 152/100 kgCHF 391/100 kgCHF 306/100kgCHF 120/100 kgCHF 182/100 kgCHF 200/100 kgGSPCHF 13 23/100 kgCHF 65/100 kgCHF 37.5/100kgCHF 76/100 kgCHF 195.5/100 kgCHF 153/100kgCHF 60/100 kgCHF 91/100 kgCHF 100/100 kgChina MFNMFNMFNMFNMFNMFNMFNMFNMFNCountries having an FTA with SwitzerlandMorocco000000000Tunisia000000000Turkey000000000Egypt000000000SACU 000000000* for fabric, when manufactured from handlooms from Pak, Sri Lanka, India and China, Duty =0%

ECDPM

Rules of origin applied by Switzerland

Since 2011, Swiss RoO for industrial products are identical to EU RoO; i.e differentiation between developing countries and LDCsFor agricultural products (HS chapters 1 to 24), the rules of origin are specific to the Swiss GSP and apply the method of tariff heading change (HS 4-digit level) with the exception of four products, i.e. HS 1108 (starches), 1901 (malt extract), 1904 (cereal products), and 1905 (bread, pastry, cakes). General value tolerance: 15% ex-works price, with the exception of textile and clothing, where specific rules apply

Derogation possible for LDCs only, if justified for economic development purposesECDPMPage *

ECDPM

Cumulation:

Bilateral, between Switzerland and beneficiary country; Diagonal, with Norway, EU and Turkey (with Turkey, not yet in force) - limited to industrial products of HS Chapters 25-97 Regional between countries belonging to same regional group provided that a request is made and approved by Switzerland and there is sufficient processing. Products of chapters 50 to 63 and HS 6401 to 6405 are excluded from regional cumulation .ECDPMPage *

ECDPM

Imports from Norway and Switzerland Fish and Fish products

Page *ECDPM

NorwayFish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedTotal imports (000)49,91710,64931,503China34.4%Russia13.9%Thailand12.3%85.9%0.3%Poland6.8%Faroe Isl5.8%Vietnam3.5%4.8%Italy 2.7%Philippines2.5%Portugal1.0%Sweden71.9%France8.6%Denmark4.6%Japan3.3%

SwitzerlandFish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedTotal Imports ( 000)79,2708,50916,779Vietnam17.2%Germany10.6%34.0%16.2%Denmanrk9.2%5.9%Russia9.2%China8.7%Italy17.0%15.9%Spain36.8%Morocco7.4%France2.5%23.2%Netherlands16.8%

ECDPM

Tariffs applied by Switzerland and NorwayPage *ECDPMRules of origin: fish fillets: Wholly obtainedTuna and prepared fish: fish must be wholly obtained

NorwayFish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedMFN0.0%0.0%0.0%GSP Rate (including MRU)0.0%0.0%0.0%LDCs0.0%0.0%0.0%Countries havinf FTA0.0%0.0%0.0%

SwitzerlandFish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedMFNNoneNoneCHF 0 -13.00/100kgGSPNoneNoneNoneCountries having FTAsNoneNoneNone

ECDPM

A Customs Union between Turkey and the EU entered into force in December 1995.

The scope of the customs union with Turkey is limited to industrial products and processed agricultural products.

Some products do not fall within the scope of the customs union: they remain subject to a preferential treatment based on origin. These are agricultural products and coal and steel

In a nutshell: Turkey EU CU covers textile and apparel but does not cover fish and fish products

2. TURKEY1. EU Turkey Customs UnionECDPMPage *

ECDPM

ECDPMPage *Exports of Turkish textile products to main markets

Tariffs: duty free

T Shirts CottonT Shirts Man MadeTrousersPull CottonShirts CottonDenim FabricCotton FabricYarnPull WoolTotal Exports to world ( '000)1,951,1951,102,1131,034,069674,244494,457316,75653,9166,1705,241EU87.1%82.1%81.7%86.0%74.0%35.5%53.9%84.5%66.1%Hong Kong8.3%Freezones21.7%Morocco4.3%Tunisia17.9%Egypt10.9%Russia1.1%2.8%8.7%US0.9%1.1%4.3%Iraq10.9%

ECDPM

Fish and fish products: Exports from Turkey to main marketsTariffs: Duty freeECDPMPage *

Fish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedTotal Exports to world ( '000)43,7202916,190EU86.7%55.3%80.4%US7.6%20.3%5.5%Azerbaijan13.0%

ECDPM

Rules of origin:For industrial products Movement of goods within customs unions is not based on their originating status but on the fact that they comply with provisions on free circulation

For agricultural products pan-Euro-Mediterranean ProtocolVessel requirements (all conditions must be fulfilled):Registration and flagOwnership: 50% by nationals; or companies headquarted in Turkey or EU where executive staff (managers, board members etc) must be nationals;Masters and officials are nationalsAt least 75% of crew must be nationalsValue tolerance: 10% of ex-works price Derogation: NoneECDPMPage *

ECDPM

Cumulation: Simplification to cover, EU27, EFTA (Iceland, Liechtenstein Mediterranean countries (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia, Palestine, West Bank and Gaza) - 42 countries in total. Key elements:

Bilateral cumulation between EU and Turkey;

Full cumulation between European Economic Area (EU27 + Iceland, Liechtenstein, Norway), Turkey, Algeria, Morocco, Tunisia

Diagonal cumulation with other Euro Med countries having FTAs among themselves and identical rules of origin

ECDPMPage *

ECDPM

Mauritius Turkey FTAMauritius signed an trade agreement with Turkey in 2011. The Agreement has not yet entered into force.

What has been obtained?2. Turkey as a potential marketECDPMPage *

Turkey TariffsYarnCotton FabricDenim FabricT Shirts CottonT shirts man madePull woolPull cottonTrousersShirts cottonMFN3.8%8%8%12%12%12%12%12%12%GSP3%6.4%6.4%9.6%9.6%9.6%9.6%9.6%9.6%Mauritius FTA from date of entry into force 0%0%0%25% per year from entry into force of agreement25% per year from entry into force of agreement0%25% per year from entry into force of agreement25% per year from entry into force of agreement25% per year from entry into force of agreement

TurkeyFish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedMFN30%80%80%GSPN0 PreferencesMauritius FTA100% reduction on MFN on 100 KG20% reduction on MFN (no quota limits)50% reduction on MFN rate for 100 kg

ECDPM

Value tolerance: 15% ex works priceGeneral Derogation: possible for development purposesDerogation for tuna: annual quota of 3.000 tonnes for preserved tuna and tuna loins and 2.000 tonnes for fish fillets (valid for 7 years, with possibility of renewal)

Vessels:Registration and flag requirements; and at least one of the following:ownership: 50% nationalOwned by companies with HO in country + 50 % ownership by nationals

Cumulation:BilateralDiagonal as with EPA, Mauritius can source its products with Turkey or EU or EPA countries, provided they are sufficiently processedWith neighbouring countries, provided a PTA is applicable, the RoO are similar and countries have concluded an agreement on customs cooperationMauritius Turkey FTA Rules of OriginECDPMPage *

ECDPM

Specific rules: Textiles

Yarn Manufacture from raw silk

Fabric single stage transformation manufacture from yarn

T Shirts and pullovers single stage transformation - manufacture from fabric

Trousers and Shirts single stage transformation - manufacture from fabric

ECDPMPage *

ECDPM

In January 2011, Turkey initiated safeguard procedures regarding imports of woven fabric and apparel Approved by Turkish Authorities in September 2011

The safeguard currently applies to Mauritius but will be lifted as soon as the the FTA will enter into force

Special safeguard measure applicable on textilesECDPMPage *

Turkey special safeguardCotton FabricDenim FabricT Shirts CottonT shirts man madePull woolPull cottonTrousersShirts cottonMFN8%8%12%12%12%12%12%12%Countries other than EU and FTA countriesMFN + 30%MFN + 30%MFN + 40%MFN + 40%MFN + 40%MFN + 40%MFN + 40%MFN + 40%GSPMFN + 28%MFN + 28%MFN + 37%MFN + 37%MFN + 37%MFN + 37%MFN + 37%MFN + 37%LDCs MFN + 21%MFN + 21%MFN + 27%MFN + 27%MFN + 27%MFN + 27%MFN + 27%MFN + 27%

ECDPM

3. EUROMED Agreements:

Case of Tunisia, Morocco and EgyptECDPMPage *

ECDPM

Key elements of the EU Med Agreements1. Coverage: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Tunisia, Palestine, Turkey, Syria (not signed)

ECDPMPage *

ECDPM

Cover essentially trade in goods, being complemented with a number of additional negotiations to open up additional agricultural trade;

Duty-free access to the EU for Med industrial products and around 80% of agricultural produce

Common rules to allow cumulation of origin within the Euromed and beyond.

Regional convention on PanEuroMed preferential rules of origin agreed in 2011

However: proper implementation of the requires complete South-South FTA networkECDPMPage *

ECDPM

Exports of selected textile products of Tunisia to main marketsTariffs: duty free on all selected products below

1. TunisiaECDPMPage *

TrousersT Shirts CottonT Shirts Man MadeShirts CottonPull cottonDenim FabricPull WoolCotton fabricYarnTotal Exports to world ( '000)495,427276,907100,24660,25653,34435,68122,8732448EU97.1%99.8%98.3%99.3%95.4%42.7%100.0%0.0%100.0%

Tuna, skip jackfish prepared and preservedFish fillets, fresh, frozen, chilledTotal Exports to world ( '000)2,789792111EU15.3%99.9%100.0%Libya73.8%UAE7.4%

ECDPM

Exports of selected textile products of Morocco to main marketsTariffs: Duty free on all selected products below

2. MoroccoECDPMPage *

TrousersT Shirts CottonT Shirts Man MadeShirts CottonPull cottonDenim FabricPull WoolCotton fabricYarnTotal Exports to world ( '000)273,888189,38482,74471,12643,16229,05092253819EU95.7%98.8%98.9%98.7%99.9%98.3%99.3%86.6%100.0%

Fish prepared and preserved Tuna, skipjackTotal Exports to world ( '000)83,2132,484EU92.1%77.4%Syria3.1%10.3%Eq. Guinea1.3%9.4%

ECDPM

Exports of selected textile products of Egypt to main marketsTariffs: Duty free on selected products below3. EgyptECDPMPage *Egypt does not export fish and fish products (tuna, skipjack) to the EU. However, duty on tuna is 20.5%

T Shirts CottonT Shirts Man MadeTrousersShirts CottonYarnPull WoolPull cottonTotal Exports to world ( '000)246,71242,450135,31431,1372,4766584EU47.9%50.8%24.4%68.9%8.0%9.2%0.0%Turkey4.5%7.6%82.0%US42.6%43.6%65.0%28.3%90.8%95.2%

ECDPM

Textile products: YarnManufacture from raw silk, natural fibres, chemicals or paper make materialsValue tolerance: 10% weight of yarnFabricSingle stage transformation - Manufacture from yarn Value tolerance: 10% weight of fabricApparel:Double stage transformation manufacture from yarnValue tolerance: 8% ex works price

Fish and fish products:Same as above for TurkeyA closer look at rules of origin in the Euromed ZoneECDPMPage *

ECDPM

Jordan, Morocco, Egypt and Tunisia have an FTA since 2006.This FTA is based on their EUROMED agreement.The RoO that apply are the EU RoOThis allows them to use the full cumulation principle, when they export to the EU. It means that any of those four countries can source their inputs among themselves and export to the EU and still benefit from duty free access to the EU market.

CumulationECDPMPage *

ECDPM

EU South Africa Trade relationshipTDCA

ECDPMPage *

ECDPM

South Africa is the EU's largest trading partner in AfricaEU concluded a trade, development and cooperation agreement in 1999

Rules of originCumulation Bilateral between SA and EUCumulation with ACP:SACU Any working or processing carried out within SACU shall be considered as having been carried out in South Africa, when further worked or processed thereOther ACP Products acquire originating status in the Community or South Africa only when the value added there exceeds the value of the materials used originating in any one of the ACP States and when it has undergone sufficient working or processing. However, EPA RoO should apply between SA and ACP country. This is currently not the case.

Vessels (all):a. Registration and flag requirementsb. Ownership requirement : 50% (also for companies headquartered)c. Nationality requirement for masters and officialsd. Crew requirement: 75% should be nationals (c and d to be replaced by 50% crew requirement once tariffs are reduced on fisheries)ECDPMPage *

ECDPM

General value tolerance: 15% ex works price, except for products falling within chapter 3 and 24 (incl fish and fish products), where 10% ex works price

Specific rules:Fish and fish products: wholly obtained

Yarn: Manufacture from raw silk or natural fibres

Fabric: Single stage transformation manufacture from yarn or natural fibres

T-shirts and pullovers: Double stage transformation manufacture from yarn or natural fibres

Shirts and trousers: Double stage transformation manufacture from yarn or natural fibres

Value tolerance: 10% weight of yarn ECDPMPage *

ECDPM

Tariff applied to South Africa under TDCAECDPMPage *

YarnCotton FabricDenim FabricT Shirts CottonT Shirts Man madePull WoolPull CottonTrousersTariff applied by EU under TDCA to South Africa0%0%0%0%0%0%0%0%

Fish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedNo preferences under TCDA - GSP applied14.5%20.5%20.5%

ECDPM

Exports of selected textile products of South Africa to main marketsECDPMPage *

T Shirts CottonTrousersT Shirts Man MadeShirts CottonPull CottonPull WoolDenim FabricTotal Exports to world ( '000)4,6154,3342,8182,109254220165EU10.7%13.2%6.1%4.9%16.1%4.5%0.0%Zambia11.7%11.3%17.1%15.0%27.6%30.9%Zimbabwe10.9%14.2%12.5%32.5%9.4%18.2%Mozambique15.0%18.6%10.5%Mauritius8.7%5.5%5.5%5.5%14.6%9.1%81.2%DRC10.8%Angola8.3%Kenya26.8%

ECDPM

*

South Africa is the largest trading partner of Mauritius in Africa

Imports from South Africa from main competitors in selected productsSouth Africa as a potential marketECDPMPage *

South AfricaYarnCotton FabricDenim FabricT Shirts CottonT Shirts Man madePull WoolPull CottonTrousersShirts CottonTotal imports8202,2156,884118,30451,2552,79028,288121,53764,779Italy6.0%10.1%1.0%China15.2%20.2%45.4%48.3%68.4%65.6%62.7%41.3%Turkey76.8%1.1%0.9%1.7%Austria6.5%Bangladesh3.9%2.1%3.6%6.5%11.0%Hong Kong2.3%India6.7%8.6%1.3%1.8%1.2%8.6%Bulgaria4.9%Mauritius2.1%58.1%35.1%28.1%12.3%52.2%9.1%18.9%10.3%Mexico3.2%Thailand3.8%3.2%Madagascar2.2%28.2%9.8%4.1%17.0%Tanzania1.0%Indonesia2.9%3.7%Vietnam1.3%

ECDPM

South Africa imports from fish and fish products from main marketECDPMPage *

South AfricaFish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedTotal imports5,41230,5263,047China18.4%23.5%Vietnam15.0%Norway23.7%Mauritius7.8%0.2%Philippines2.0%UKThailand95.5%10.7%Argentina6.4%Taipei1.1%Indonesia0.4%Italy0.2%Uruguay41.8%

ECDPM

Duties applied by South Africa to SADC countriesECDPMPage *

YarnCotton FabricDenim FabricT Shirts CottonT Shirts Man madePull WoolPull CottonTrousersMFN Rate0%22%22%45%45%45%45%45%Duty applied to SADC countries0%0%0%0%0%0%0%0%

Fish fillets, fresh, frozen, chilledTuna, skip jackfish prepared and preservedMFN Rate25%25% or $240 whicher is the highest$ 7.2 per tonneDuty applied to SADC countries0%0%0%

ECDPM

Fish and Fish products: Wholly obtained

Yarn: (51.06.10) change in tariff heading

Fabric: Single stage transformation manufacture from yarn

T Shirts and pullovers: Double stage transformation - manufacture from yarn

Shirts and trousers: Double stage transformation - manufacture from yarn

SADC Rules of OriginECDPMPage *

ECDPM

Thank youwww.ecdpm.orgwww.slideshare.net/ecdpmPage *

*