South Africa and European South Africa and European Union FTAUnion FTA

South Africa and European South Africa and European Union FTAUnion FTA

Presented by: Gert van Rensburg

Directorate: International Trade

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ContentContentContentContent

• Background

• Overview of the agreement

• MFN Duties vs. TDCA Duties

• Specific benefits and opportunities

• Market Access Requirements

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BackgroundBackgroundBackgroundBackground

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)

Wine R 2 669 million

Fresh Grapes R 1 809 million

Fresh Oranges R 1 301 million

Fresh Apples R 878 million

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Overview of the TDCAOverview of the TDCAOverview of the TDCAOverview 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).

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MFN Duties vs. TDCA DutiesMFN Duties vs. TDCA Duties MFN Duties vs. TDCA DutiesMFN Duties vs. TDCA Duties

Product code Description MFN duties TDCA duties

0208

Other meat and edible meat

offal, fresh, chilled or frozen

02089030

Of game, other than of rabbits

or hares 0% 0%

0805 Citrus fruits    

08051020 Fresh sweet oranges 3.20% 0%

080520

Clementine's, Monreales and Satsuma's, Mandarins and Wilkings, Tangerines, Other 16.00% 3.50%

070110 Potatoes - seed 4.50% 0%

07051100Cabbage lettuce (head lettuce)

12.00 % MIN 2.00 EUR / 100 kg/br 2.60%

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Duty reduction schedule of EU : (Duty reduction schedule of EU : (Annex IVAnnex IV))Duty reduction schedule of EU : (Duty reduction schedule of EU : (Annex IVAnnex IV))

List in

TDCA

Duty Explanation

List 0 & 1 Zero duty Products enter the EU already free e.g. margarine

List 2 - 4 Duty reduce in

equal steps until 0

duty in 2010

Tariff duty will be zero on 1 January 2010 e.g. sunflower

seed, cabbage & apricots

List 5 Fixed duty Processed agricultural products – buttermilk & chocolate

List 6 Partial duty

liberalisation

Tariff quotas – cheese and curd, cut flowers, canned

pears, apricots and peaches, fruit juices and wine

List 7 & 8 MFN Duty Reserve and omission list

Excluded, but reserve list is open for review

e.g. maize (reserve list) & sparkling wine (omission list)

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Market Access RequirementsMarket Access RequirementsMarket Access RequirementsMarket 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.za and follow the links: - Customs and Excise; Trade; Trade agreements

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For more information contactFor more information contactFor more information contactFor more information contact

Directorate: International Trade

Tel: 012 319 8452

Fax: 012 319 8001

E-mail: info.ditr@nda.agric.za

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Thank you

Enkosi

Dankie