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South Africa and European Union FTA

South Africa and European Union FTA

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South Africa and European Union FTA

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  1. South Africa and European Union FTA Presented by: Lillian Rantho Directorate: International Trade

  2. Content • Background • Overview of the Agreements • Specific benefits and opportunities • MFN Rates vs Preferential Rates • Market Access Requirements • Contact Details

  3. Background • European Union (EU) is the main trading partner of South Africa – 50% of SA agricultural was exported to EU in 2007 • EU consists of 27 Member States - Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Romania and Bulgaria • South Africa access EU markets through the scheme called Generalized System of Preferences and Trade, Development and Cooperation Agreement • Generalized System of Preferences is scheme whereby EU extend unilateral special treatment to developing countries (SA included) • TDCA – free trade agreement between South Africa and EU

  4. Overview of the TDCA • TDCA was signed in 1999 and entered into force in 2000 • Liberalization period - Immediate liberalization and transitional liberalization over 10 years by the European Union and 12 years by South Africa • 70% of SA agricultural trade duty free after 12 years. • EU will liberalise 61% of agricultural imports from SA (72 if partial liberalization quotas are included). • Agricultural Safeguard Clause • Co-operation in Agriculture • TDCA – subject to review no later five years after entry into force

  5. Specific benefits and opportunities - liberalization schedule of EU (Annex IV)

  6. Specific benefits and opportunities cont’d

  7. Trade flows of top 5 SA agricultural exports to EU

  8. MFN Rates vs Preferential Rates

  9. Market Access Requirements • Prerequisites to access preferential treatment - • Comply with Rules of Origin as stipulated in a Protocol to TDCA to qualify for preferential rates: • The EUR 1 form must accompany each consignment in order to qualify for TDCA preferences. EUR 1 is obtainable from the applicant’s local South African Revenue Services: Customs and Excise offices. • Comply with Sanitary and Phytosanitary measures and technical standards at the European Union – DoA Directorates: Veterinary Services and Plant Health • Procedures for the application, administration and allocation of export permits for quotas: details to be covered by Directorate Marketing • Full agreement is available online: www.sars.gov.za and follow the links: - Customs and Excise; Trade; Trade agreements

  10. Contact Details • Directorate: International Trade (Europe) of DoA • Ms J Letswalo, 012 319 8007, JoyceLe@nda.agric.za • Ms L Rantho, 012 319 8024, LillianR@nda.agric.za