South Africa and European Union FTA Presented by: Gert van Rensburg Directorate: International Trade

2 ContentContent Background Overview of the agreement MFN Duties vs. TDCA Duties Specific benefits and opportunities Market Access Requirements

3 BackgroundBackground  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) WineR million Fresh GrapesR million Fresh OrangesR million Fresh ApplesR 878 million

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5 Overview 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).

6 MFN Duties vs. TDCA Duties MFN Duties vs. TDCA Duties Product codeDescriptionMFN dutiesTDCA duties 0208 Other meat and edible meat offal, fresh, chilled or frozen Of game, other than of rabbits or hares 0% 0805Citrus fruits Fresh sweet oranges3.20%0% Clementine's, Monreales and Satsuma's, Mandarins and Wilkings, Tangerines, Other16.00%3.50% Potatoes - seed4.50%0% Cabbage lettuce (head lettuce) % MIN 2.00 EUR / 100 kg/br2.60%

7 Duty reduction schedule of EU : ( Annex IV ) List in TDCA DutyExplanation List 0 & 1Zero dutyProducts enter the EU already free e.g. margarine List 2 - 4Duty 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 & 8MFN DutyReserve and omission list Excluded, but reserve list is open for review e.g. maize (reserve list) & sparkling wine (omission list)

8 Market 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: and follow the links: - Customs and Excise; Trade; Trade agreements

9 For more information contact Directorate: International Trade Tel: Fax:

Thank you Enkosi Dankie