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South Africa and European Union FTA

South Africa and European Union FTA. Presented by: Gert van Rensburg Directorate: International Trade. Content. Background Overview of the agreement MFN Duties vs. TDCA Duties Specific benefits and opportunities Market Access Requirements. Background.

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South Africa and European Union FTA

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

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

  3. Background • 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)

  4. 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).

  5. MFN Duties vs. TDCA Duties

  6. Duty reduction schedule of EU : (Annex IV)

  7. 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: www.sars.gov.zaand follow the links: - Customs and Excise; Trade; Trade agreements

  8. For more information contact • Directorate: International Trade • Tel: 012 319 8452 • Fax: 012 319 8001 • E-mail: info.ditr@nda.agric.za

  9. . . . . . • Thank you • Enkosi • Dankie

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