SACU-EFTA AGREEMENT Xolani Nqaba Directorate: International Trade.

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SACU-EFTA AGREEMENT SACU-EFTA AGREEMENT Xolani Nqaba Directorate: International Trade

Transcript of SACU-EFTA AGREEMENT Xolani Nqaba Directorate: International Trade.

Page 1: SACU-EFTA AGREEMENT Xolani Nqaba Directorate: International Trade.

SACU-EFTA AGREEMENTSACU-EFTA AGREEMENTSACU-EFTA AGREEMENTSACU-EFTA AGREEMENT

Xolani NqabaDirectorate: International Trade

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ContentContentContentContent

• Background

• Overview of the Agreement

• Specific benefits and opportunities

• MFN Rates vs Preferential Rates

• Market Access Requirements/Procedures

• Contact Details

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BackgroundBackgroundBackgroundBackground

Association (EFTA): intergovernmental organisations set up for the promotion of free trade and economic integration.

The old EFTA grouping of 1960 has undergone several changes and the new EFTA of 1995 as we know it today has a membership of Iceland, Norway, Liechtenstein and Switzerland.

EFTA is an important trading partner of SACU.

Although EFTA countries are small, they are world leaders in several sectors vital to the global economy. They rank among the countries with the highest GDP per capita in the world. They are developed countries and are major net-importers of agricultural products.

In addition to intra-EFTA free trade, EFTA has negotiated free trade agreements with third countries including with SACU.

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Overview of the AgreementOverview of the AgreementOverview of the AgreementOverview of the Agreement

Free trade negotiations between EFTA and SACU were launched in 2003.

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

The agreement will be phased-in over a period of nine years.

The Main Agreement consists of seven Chapters with a total of 44 Articles and 8 Annexes. Chapters are as follows:

♦ General Provisions

♦ Trade in Goods

♦ Intellectual Property

♦ Services, Investment, Public Procurement

♦ Economic co-operation and technical assistance

♦ Institutional and Procedural Provisions

♦ Final Provisions

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Overview of the Agreement Cont…Overview of the Agreement Cont…Overview of the Agreement Cont…Overview of the Agreement Cont…

Trade in Goods

Coverage on trade in goods: - Industrial products, Fish and other marine products, Processed agricultural products, and Basic agricultural products .

Processed agricultural products are included in the main agreement (as Annex III) which also covers trade in industrial products including fish and other marine products.

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

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

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Specific benefits and opportunitiesSpecific benefits and opportunitiesSpecific benefits and opportunitiesSpecific benefits and opportunities

In terms of the main agreement SACU will enjoy immediate duty-free access into EFTA markets for all products covered by this agreement, with the exception of processed agricultural products. SACU shall progressively reduce its customs duties on imports from EFTA (Annexes IV and VII).

In terms of the bilateral agricultural agreement with Switzerland, SACU exporters will have a better market access for canned oranges, mandarins and apricots. They will also face duty free access for canned peaches, grapefruit and lemons. Cider apples and apples for distilling will be duty free within the limits of Switzerland’s World Trade Organisation (WTO) market access quota. There are other products that will benefit as well.

SACU exporters will face duty free access to Norway for canned fruit: - Pineapples (HS code 2009.20), Pears (HS 2008.40), Apricots (HS 2008.50), Peaches (HS 2008.50) and Mixtures entirely containing fruits of heading 0803 – 0810. There are other products included in this agreement that will also benefit.

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

In terms of the SACU-Iceland bilateral agreement, SACU secured duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.

Parties undertook to achieve further liberalisation through a review clause in all the three bilateral agreements with SACU with the first review taking place no later than three years after the implementation of the agreements.

Further reviews are to be determined at the first review.

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Bilateral trade flows between SA and EFTA StatesBilateral trade flows between SA and EFTA States

SwitzerlandSwitzerland

Bilateral trade flows between SA and EFTA StatesBilateral trade flows between SA and EFTA States

SwitzerlandSwitzerland

Product code Description South Africa’s Exports to Switzerland

2006 (R’000) 2007 (R’000)

20 Vegetable, fruit, nut,

etc food preps

66 807.95 84 917.49

22 Beverages, spirits

and vinegar

57 549.37 47 654.90

08 Edible fruit, nuts,

peel of citrus fruit,

melons

76 656.51 59 671.94

02 Meat and edible

meat offal

68 665.03 57 866.68

07 Edible vegetables

and certain roots

and tubers

10 901.13 9 616.35

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Bilateral trade flows between SA and EFTA StatesBilateral trade flows between SA and EFTA States

NorwayNorway

Bilateral trade flows between SA and EFTA StatesBilateral trade flows between SA and EFTA States

NorwayNorway

Product code Description South Africa’s exports to Norway

2006 (R’000) 2007 (R’000)

08 Edible fruit, nuts,

peel of citrus fruit,

melons

25 140.97 45 855.02

22 Beverages, spirits

and vinegar

22 512.90 29 179.19

20 Vegetable, fruit, nut,

etc food preps

1 756.52 3 722.91

06 Live trees, plants,

bulbs, roots, cut

flowers etc

1 857.08 2 992.38

12 Oil seed, oleagic

fruits, grain, seed,

fruit, etc, nes

1 045.86 2 563.89

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Bilateral trade flows between SA and EFTA StatesBilateral trade flows between SA and EFTA States

IcelandIceland

Bilateral trade flows between SA and EFTA StatesBilateral trade flows between SA and EFTA States

IcelandIceland

Product code Description South Africa’s exports to Iceland

2006 (R’000) 2007 (R’000)

22 Beverages, spirits

and vinegar

6 100.88 4 713.35

20 Vegetable, fruit, nut,

etc food preps

4 196.87 4 291.88

08 Edible fruit, nuts,

peel of citrus fruit,

melons

181.02 2 275.89

09 Coffee, tea, mate

and spices

140.79 154.54

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MFN rates vs Preferential ratesMFN rates vs Preferential rates

SwitzerlandSwitzerland

MFN rates vs Preferential ratesMFN rates vs Preferential rates

SwitzerlandSwitzerland

Product code Description MFN

rates

SACU

rates

07020010 Tomatoes, fresh or chilled 1.24% Free

07041010 Cabbages, cauliflowers, kohlrabi, kale and

similar edible brassicas, fresh or chilled

6.68% Free

08051000 Citrus fruit, fresh or dried ; Oranges 6.68% Free

12060031 Sunflower seeds, whether or not broken:

For human consumption

0.13% Free

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MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

NorwayNorway

MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

NorwayNorway

Product code Description MFN

rates

SACU

rates

07011000 Potatoes, fresh or chilled; Seed 53.92% 45.70%

07031012 Onions, shallots, garlic, leeks and other

alliaceous veges, fresh or chilled: Onions

16.14% 13.77%

08051010 Citrus fruit, fresh or dried: Oranges; For

feed purpose

42.94% 38.50%

12060010 Sunflower seeds, whether or not broken:

For feed purpose

87.54% 78.56%

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MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

IcelandIceland

MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

IcelandIceland

Product code Description MFN rates SACU

rates

070320 Onions, shallots, garlic, leeks and other

alliaceous veges, fresh or chilled: Garlic

30.00% Free

08 Edible fruit and nuts; peel of citrus fruit or

melons

0.00% Free

110812 Products of the milling industry; malt;

starches; inulin; wheat gluten: Maize

0.00% Free

1701 Sugars and sugar confectionery: Cane

or beet sugar and chemically pure

sucrose, in solid form

0.00% Free

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Market Access Requirements/ProceduresMarket Access Requirements/ProceduresMarket Access Requirements/ProceduresMarket Access Requirements/Procedures

Compliance with:

Rules of Origin (RoO)

Sanitary and Phytosanitary (SPS) measures, etc

The administration of export permits for quotas is handled by Directorate Marketing.

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Contact detailsContact detailsContact detailsContact details

1. For SACU-EFTA FTA visit:

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

Customs and Excise; Trade; Trade agreements

2. Joyce Letswalo or Xolani Nqaba

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

Thank you