1. SADC FREE TRADE ARRANGEMENT BENEFITS & OPPORTUNIES
Presented by:
Sam Legare
Department of Agriculture
Directorate: International Trade
Desk: Africa Trade Relations

2. CONTENT Background Overview of SADC FTA (SPoT)
Tariffs and Non-Tariffs Barriers to Trade (NTBs)
Current status of tariff phase down
Specific benefits and opportunities
Market Access Requirements
Contact Details

3. Background
Africa Desk – Responsible for RSA agriculture trade relations with African countries
The Desk is responsible for agriculture trade negotiations under SACU Agreements and SADC Protocol on Trade
Together with the DTI - Facilitate and monitor the implementation of both SACU and SADC Agreements
The Desk also facilitate the implementation of RSA BNC with various African countries

4. Overview SADC Protocol on Trade
Regional Free Trade Arrangement between 14 Member States ( Exc – Angola and DRC.)
Free Trade Agreement = Protocol on Trade signed in 1996 and effected in 2000:
Objective: Liberalize and promote intra-SADC trade. 85% total trade free of tariffs by 2008
How? Pillars of trade liberalization as provided in the Protocol:
- Tariff phase down
- Identification and removal of NTBs to Trade
- Simple and trade facilitative Rules of Origin

5. Tariff Phase Down Process
Member States submit a Tariff Phase Down Offer
Offer – Instrument of implementing the Protocol and gazetted on annual basis (Moz & Tanz)
Offers are reciprocal and asymmetric
Products are categorized (A, B, C and E) in terms of duration of tariff reductions
Includes all but not Sugar – Agreement on Trade in Sugar ( 2001)
The offer currently implemented by Mozambique..

6. Tariff Phase Down Status
Member States
% of tariff lines free of customs duties
Date at which the % was achieved
SACU 99
January 2008
Zambia 95
Mozambique 94
Tanzania 91
Mauritius 86
Zimbabwe
Madagascar 84
Malawi 32
July 2007

7. Removal of NTBs Any trade barriers other than tariff
- Unharmonised quality and standard for products
- Export and import licensing or quotas
- Unnecessary export and import bans
Most commonly affected agricultural products
- Meat products (including chicken)
- Dairy products and seasonal vegetables
Article 6 of the SPoT – Elimination of all existing NTBs and refrain from imposing new ones
NTB Identification and Elimination Mechanism recently adopted in July 2008

8. 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)
- NTBs ( Elimination Mechanism already in place)
- TBTs ( Common technical regulation framework)
Thus allows RSA products to access closed markets and thus achieving higher rates of economic growth
Powerful tool in fostering regional integration and integration into world economy e.g. EU

9. Market Access Requirements
Compliance with SADC Rules of Origin:
- RoO specify conditions for products to confer originating status
- Ensure that only originating goods enjoys tariff preferences
- Goal - Encourage regional value addition
Compliance with SPS Measures of the trading partner
- SPS Agreement adopted
- Obligate Member States to accept other’s SPS measures as equivalent to theirs.
- Basis for harmonizing Member State’s conflicting SPS measures

10. Contact Details Department of Agriculture
Directorate : International Trade : Africa Desk
Tel No : /7
Fax No :