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1 INTERNATIONAL TRADE ARRANGEMENTS SA TRADE AGREEMENTS DIRECTORATE: INTERNATIONAL TRADE NOVEMBER 2010
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2 CONTENT Americas AGOA TIDCA MERCOSUR Africa SACU SADC Europe TDCA EFTA
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3 Africa Growth and Opportunity Act (AGOA) Signed by Pres. Clinton in 2000 Benefits countries in Sub-Sahara Africa Expires in September 2015 Provides for: o Unilateral market access; from SSA to USA o Duty free, quota free imports into USA o Includes 800 agricultural tariff lines o Assistance is available to find leads (Trade Hub) SA uses 20% of 800 lines – opportunity to improve…
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4 SACU-USA Trade, Investment and Development Cooperation Agreement (TIDCA) Signed in 2008 Prepares the grounds for free trade negotiations in future Agreements on specific areas of cooperation between SACU and USA For: o Capacity building in trade o Facilitating the easy flow of trade o Investment opportunities and joint ventures
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5 SACU-MERCOSUR Preferential Trade Agreement (PTA) Negotiations completed in 2009 Not yet implemented – in the process of ratification Members are Argentina, Brazil, Uruguay and Paraguay Provides for: o Tariff reductions (between 25% -100%) o 160 lines in agriculture to be exported from SACU Current balance? SACU exports are severely less than imports !!
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6 Southern African Customs Union (SACU) Customs Union established in 1910 o Members: RSA, Botswana, Lesotho, Namibia & Swaziland Agreement provides for: o Common External Tariff o Free flow of goods o Sharing of customs revenue o Common negotiating mechanism o Harmonization of the industrial and trade policies
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7 Southern African Development Community (SADC) Established in 1980; RSA joined in 1994 SADC has fifteen members (Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe) SADC Free Trade Area was formally launched in August 2008 Electronic system of reporting NTBs
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8 SA-EU Trade and Development Cooperation Agreement (TDCA) EU is SA’s main trading partner (+ 42% of SA agri exports) EU consists of 27 Member States TDCA entered into force in 2000 61% of agricultural imports from SA into the EU are duty free in 2010
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9 SACU – EFTA FREE TRADE AGREEMENT (FTA) European Free Trade Association EFTA members are: Norway, Iceland, Switzerland and Liechtenstein They are net-importers of agricultural products. The FTA was signed in June 2006 and entered into force on 1 May 2008. Agreement to be gradually implemented over a period of nine years.
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10 MARKET ACCESS REQUIREMENTS o Rules of Origin (SARS Website) o Sanitary and Phyto-sanitary (SPS) measures and technical standards o Procedures, e.g. application for permits/quotas or certification if required o Specific forms, related to each agreement, that must accompany every consignment (may be obtained from SARS). Full agreements are available online: www.sars.gov.za and follow the links: - Customs and Excise; Trade; Trade agreements
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11 FOR MORE INFORMATION CONTACT Directorate: International Trade of the DAFF Tel: 012-319 8452 Fax: 012 319 8001 Email: DITR@daff.gov.za
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12 END THANK YOU
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