south africa and european union fta presented by: gert van rensburg directorate: international trade
TRANSCRIPT
South Africa and European South Africa and European Union FTAUnion FTA
South Africa and European South Africa and European Union FTAUnion FTA
Presented by: Gert van Rensburg
Directorate: International Trade
22
ContentContentContentContent
• Background
• Overview of the agreement
• MFN Duties vs. TDCA Duties
• Specific benefits and opportunities
• Market Access Requirements
33
BackgroundBackgroundBackgroundBackground
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
SA trade with the EU under the agreement called the Trade, Development and
Cooperation Agreement (TDCA)
Wine R 2 669 million
Fresh Grapes R 1 809 million
Fresh Oranges R 1 301 million
Fresh Apples R 878 million
44
55
Overview of the TDCAOverview of the TDCAOverview of the TDCAOverview 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).
66
MFN Duties vs. TDCA DutiesMFN Duties vs. TDCA Duties MFN Duties vs. TDCA DutiesMFN Duties vs. TDCA Duties
Product code Description MFN duties TDCA duties
0208
Other meat and edible meat
offal, fresh, chilled or frozen
02089030
Of game, other than of rabbits
or hares 0% 0%
0805 Citrus fruits
08051020 Fresh sweet oranges 3.20% 0%
080520
Clementine's, Monreales and Satsuma's, Mandarins and Wilkings, Tangerines, Other 16.00% 3.50%
070110 Potatoes - seed 4.50% 0%
07051100Cabbage lettuce (head lettuce)
12.00 % MIN 2.00 EUR / 100 kg/br 2.60%
77
Duty reduction schedule of EU : (Duty reduction schedule of EU : (Annex IVAnnex IV))Duty reduction schedule of EU : (Duty reduction schedule of EU : (Annex IVAnnex IV))
List in
TDCA
Duty Explanation
List 0 & 1 Zero duty Products enter the EU already free e.g. margarine
List 2 - 4 Duty reduce in
equal steps until 0
duty in 2010
Tariff duty will be zero on 1 January 2010 e.g. sunflower
seed, cabbage & apricots
List 5 Fixed duty Processed agricultural products – buttermilk & chocolate
List 6 Partial duty
liberalisation
Tariff quotas – cheese and curd, cut flowers, canned
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 list)
88
Market Access RequirementsMarket Access RequirementsMarket Access RequirementsMarket 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
99
For more information contactFor more information contactFor more information contactFor more information contact
Directorate: International Trade
Tel: 012 319 8452
Fax: 012 319 8001
E-mail: [email protected]
1010
. . . . . . . . . . . . . . . . . . . .
Thank you
Enkosi
Dankie