1. SADC FREE TRADE ARRANGEMENT BENEFITS & OPPORTUNIES
Presented by: Sam Legare
Africa Trade Relations Desk

2. CONTENT Background Overview of SADC FTA
Pillars of implementing the Agreement
Current implementation status
Specific benefits and opportunities
Market access requirements
Contact Details

3. Background
Mandate – Develop, promote and support beneficial participation of SA agriculture in international trade
The Desk – Responsible for SA agriculture trade relations with African countries
Through the implementation:
- SACU Agreement
- SADC FTA (Protocol on Trade)
- Other trade cooperation agreements
Together with the DTI - Facilitate and monitor the implementation of the above Agreements

4. Overview SADC Free Trade Area
Regional Free Trade Agreement between 14 Member States ( Exc – Angola and DRC.)
The agreement establishing SADC FTA = Protocol on Trade : signed in 1996 and effected in 2000
Objective: Liberalize and promote intra-SADC trade.
Goal : 85% total trade taking place free of tariffs and other forms of trade barriers by 2008
How? – Pillars of liberalizing and promoting trade:
- Reduce tariffs among themselves (Tariff phase down)
- Identify and remove NTBs against themselves
- Adopt simple and trade facilitative Rules of Origin

5. Tariff Phase Down Process
All Member States submitted their Tariff Phase Down Offers ( 2000)
Offer – Commitment showing gradual (How & When) elimination of tariffs on all products traded
Offer – Instrument of implementing the FTA and is gazetted by Member States on annual basis
Products are categorized (A, B, C and E) in terms of duration of tariff reductions
Offers are reciprocal and asymmetric.
SACU (RSA, Botswana, Lesotho, Namibia and Swaziland) made a single offer

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. Identification & removal of NTBs
Any trade barrier other than a tariff
- Different quality, standard, technical regulations, etc required for same products
- Unnecessary export or import licensing, quotas bans, etc.
- Ad hoc import / export requirements without notifying trading partners in time
Agreement – Identify and eliminate all forms of 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 each SADC Member State:
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)
Powerful tool in fostering regional integration and integration into world economy e.g. EU

9. Market Access Requirements
Compliance with SADC Rules of Origin:
- Ensure that only originating goods enjoys tariff preferences
- RoO specify conditions for products to confer originating status
- Goal - Encourage regional value addition
Compliance with SPS Measures of the trading partner
- Measures adopted by countries to protect their animal, plant and human from foreign diseases
- 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 National Department of Agriculture
Directorate : International Trade : Africa Desk
Tel No : /7/8
Fax No :