SADC FREE TRADE ARRANGEMENT BENEFITS & OPPORTUNIES Presented by: Sipho Maluleka Department of Agriculture Directorate: International Trade Desk: Africa.

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Presentation transcript:

SADC FREE TRADE ARRANGEMENT BENEFITS & OPPORTUNIES Presented by: Sipho Maluleka Department of Agriculture Directorate: International Trade Desk: Africa Trade Relations

CONTENT Background Overview of SADC Agreement Objective of trade protocol Current status of tariff phase down in SADC Process of eliminating Non Tariff Barriers Specific benefits and opportunities Market Access Procedures Contact details

Africa – Bilateral Africa Desk – Responsible for RSA agriculture trade relations with various African countries The Desk handles agriculture trade negotiations under SACU and SADC Trade Agreements Together with the DTI - Facilitate and monitor the implementation of both SACU and SADC Trade Agreements The Desk also coordinate trade related activities with various African countries

Established in 1980 and Development Community in 1992 SADC has fifteen member States (Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe) Free Trade Area was formally launched in August 2008 SADC has combined GDP of US $ million with a population of 248 million Major agricultural products exported by SA are maize, wheat, fruits, vegetables and sugar Overview of SADC

Objective of SADC To further liberalize intra-regional trade in goods and services To ensure efficient production within SADC reflecting the current and dynamic comparative advantages of its members. To contribute towards the improvement of the climate for domestic, cross-border and foreign investment. To enhance the economic development, diversification and industrialization in the region

Selected agricultural products exported to SADC Products2007 (Values in R millions) 2008 ( values in R millions) Oranges7990 Bananas Avocadoes Macadamia nuts

Tariff Phase Down Status Member States % of tariff lines free of customs duties Date at which the % was achieved SACU99January 2008 Zambia95January 2008 Mozambiqu e 94January 2008 Tanzania91January 2008 Mauritius86January 2008 Zimbabwe86January 2008 Madagasca r 84January 2008 Malawi32July 2007

Role of Private Sector - indentify an NTB - Report to government - This will allows to monitor the NTB Role of Government - Receive complain directly from the trader - Investigate and determine if an allegation is NTB - Report an NTB to country imposing it Role of SADC Monitoring Unit - Keep records of all NTBs related information - Monitor the elimination process Removal of Non Tariff Barriers

Market Access Procedures (SADC) To qualify for lower duties under SADC – There should be compliance with: -Rules of origin ( SARS) -Sanitary and Phytosanitary measures & technical standard Full agreement is available online and follow the customs and exercise; trade or

Benefits & Opportunities (SADC FTA) The FTA afford RSA products preferential market access into the respective SADC members: FTA provides for elimination of all forms of trade barriers: - Tariffs ( >85% of total trade is currently free) - Non-Tariff Barriers to trade FTA allows RSA products to access closed markets and thus achieving higher rates of economic growth

Contact Details Contact Details Department of Agriculture, Forestry and Fisheries Directorate : International Trade : Africa Desk Tel No : /7 Fax No :