SACU-EFTA AGREEMENT Xolani Nqaba Directorate: International Trade.

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Presentation transcript:

SACU-EFTA AGREEMENT Xolani Nqaba Directorate: International Trade

2 ContentContent Background Overview of the Agreement Specific benefits and opportunities MFN Rates vs Preferential Rates Market Access Requirements/Procedures Contact Details

3 BackgroundBackground  European Free Trade Association (EFTA): intergovernmental organisations set up for the promotion of free trade and economic integration.  EFTA membership: Iceland, Norway, Liechtenstein and Switzerland.  Major net-importers of agricultural products.  EFTA an important trading partner of SACU.

4 South Africa’s Agricultural Trade with EFTA ( 1999 – 2007)

5 Overview of the Agreement  EFTA - SACU negotiations launched in  The Free Trade Agreement (FTA) signed in June 2006 and entered into force on 1 May  Agreement to be gradually implemented over nine years.

6 Overview of the Agreement Cont… Trade in Agricultural Products  Processed agricultural products included in the Main agreement (as Annex III).  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.

7 Specific benefits and opportunities  For processed agricultural products EFTA States grant SACU products preference that is not less favourable than that accorded to the European Union.  Bilateral agricultural agreement with Switzerland: SACU will have better market access for canned oranges, mandarins and apricots. Duty free access for canned peaches, grapefruit and lemons. Cider apples and apples for distilling duty free within the limits of a market access quota.  Bilateral agricultural agreement with Norway: SACU will face duty free access for certain types of canned fruit: - i.e. certain Pineapples, Pears, Apricots, Peaches and Mixtures of certain fruits of heading 0803 – 0810.

8 Specific benefits and opportunities Cont…  Bilateral agricultural agreement with Iceland: SACU secured duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.  Further liberalisation through a review clause in all the three bilateral agreements.

9 MFN rates vs Preferential rates Switzerland Product codeDescription MFN rates SACU rates Other meat of game animals: Ostrich, springbok, oryx Free 3301Essential oilsFree Citrus fruit, fresh or dried ; Oranges6.68%Free Fruit juices: - Orange juice6.91%Free

10 MFN rates vs Preferential rates Cont… Norway Product codeDescriptionMFN rates SACU rates Other meat: of Ostrich Bound rate less 15% 3301Essential oilsFree Citrus fruit, fresh or dried: OrangesFree 2009Fruit juices and vegetable juices: - Orange juice 2.98%Free

11 MFN rates vs Preferential rates Cont… Iceland Product code DescriptionMFN rates SACU rates 08 Edible fruit and nuts; peel of citrus fruit or melons 0.00%Free 3301Essential oilsFree 2009Fruit juices and vegetable juices0.00%Free

12 Market Access Requirements/Procedures Compliance with:  Rules of Origin (RoO)  Sanitary and Phytosanitary (SPS) measures, etc  The administration of export permits for quotas - Directorate Marketing.

13 Contact details 1. For SACU-EFTA FTA visit: and follow the links: - Customs and Excise; Trade; Trade agreements 2. Joyce Letswalo or Xolani Nqaba Directorate: International Trade (012) or Thank you