1. SACU – EFTA FREE TRADE AREA

2. The European Union A customs union, like SACU Principle of the “acquis de communataire” EU enlargements: * 1973 *1981 *1986 *1995 *2004 *2007 (foreseen for Bulgaria and Romania)

3. EU 15 19571973198119861995 BelgiumDenmarkGreeceSpainAustria FranceIrelandPortugalFinland GermanyUKSweden Italy Luxemb. Netherl.

4. EU Enlargement 2004 Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovenia Slovakia

5. European Free Trade Association Iceland, Norway, Switzerland, Liechtenstein Not a customs union Closely integrated with the EU Trails the EU in relation to 3 rd countries But does not have the common policies and pooling of resources as the EU has

6. POLITICAL ECONOMY SA trade policy vis-à-vis Europe * Harmonisation on the back of the TDCA *Single trading regime: SADC-EU SACU – EFTA *Built SACU’s common policies *Would inform the review of the TDCA

7. ECONOMIC RATIONALE Contractual versus unilateral access GSP versus FTA Small but wealthy markets Clothing and textiles stand to benefit

8. SCOPE OF MAIN AGREEMENT Trade in goods *Tariff liberalisation *Subject to rules of origin New generation issues *Only cooporative provisions *Rendez-vous clause

9. CONTENT OF MAIN AGREEMENT Fish & marine Processed agriculture Industrial EFTA offer Duty free on 01/01/07 Equivalence with access enjoyed by EU Duty free and quota free on 01/01/07 SACU offer Certain lines back loaded Almost similar to access enjoyed by EU Almost similar to EU access

10. Liberalisation schedules EUEFTA List 020002003 List 12000-20032003 List 22003-20052006-2008 List 32003-20122006-2015 List 42005-20122008-2015 List 5Partial, in 7 th year of implementation Partial liberalisation in 4 th year of imple. List 6Reserved list

11. ADMINISTRATION Single SACU origin

12. State of play All 9 parties committed to ratify before end of November If that is achieved, agreement to enter into force on 01/01/07