efta-sacu free trade agreement (fta) xolani nqaba directorate: international trade
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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
22
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)
050
100150200250300350400450500
2006 2007 2008Years
Exp
orts
to /
and
Impo
rts
from
EF
TA
(R
mill
ion)
0
50
100
150
200
250
300
350
Tra
de b
alan
ce
SA exports to EFTA SA Imports from EFTA Trade Balance
1010
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)
0
2000000
4000000
6000000
8000000
10000000
12000000
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
1111
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)
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
10000000
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
0.000
10.000
20.000
30.000
40.000
50.000
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
20.000
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