SACU-EFTA AGREEMENTSACU-EFTA AGREEMENTSACU-EFTA AGREEMENTSACU-EFTA AGREEMENT

Xolani NqabaDirectorate: International Trade

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ContentContentContentContent

• Background

• Overview of the Agreement

• Specific benefits and opportunities

• MFN Rates vs Preferential Rates

• Market Access Requirements/Procedures

• Contact Details

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BackgroundBackgroundBackgroundBackground

European Free Trade Association (EFTA): intergovernmental organisations set up for the promotion of free trade and economic integration.

EFTA membership: Iceland, Norway, Liechtenstein and Switzerland.

Major net-importers of agricultural products.

EFTA an important trading partner of SACU.

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South Africa’s Agricultural Trade South Africa’s Agricultural Trade withwith EFTA EFTA ( 1999 – 2007) ( 1999 – 2007)

South Africa’s Agricultural Trade South Africa’s Agricultural Trade withwith EFTA EFTA ( 1999 – 2007) ( 1999 – 2007)

South Africa's Trade with EFTA (1999 - 2007)

0

100

200

300

400

500

1999 2000 2001 2002 2003 2004 2005 2006 2007

Years

Val

ues

(R

, mill

ion

)

IMPORTS EXPORTS

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Overview of the AgreementOverview of the AgreementOverview of the AgreementOverview of the Agreement

EFTA - SACU negotiations launched in 2003.

The Free Trade Agreement (FTA) signed in June 2006 and entered into force on 1 May 2008.

Agreement to be gradually implemented over nine years.

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Overview of the Agreement Cont…Overview of the Agreement Cont…Overview of the Agreement Cont…Overview of the Agreement Cont…

Trade in Agricultural Products

Processed agricultural products included in the Main agreement (as Annex III).

Primary/Basic agricultural products covered in separate bilateral agreements between individual EFTA countries and SACU.

Lists of products for which the partner countries grant preferences to one another found in the annexes of the agreements.

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Specific benefits and opportunitiesSpecific benefits and opportunitiesSpecific benefits and opportunitiesSpecific benefits and opportunities

For processed agricultural products EFTA States grant SACU products preference that is not less favourable than that accorded to the European Union.

Bilateral agricultural agreement with Switzerland:

• SACU will have better market access for canned oranges, mandarins and apricots.

• Duty free access for canned peaches, grapefruit and lemons.

• Cider apples and apples for distilling duty free within the limits of a market access quota.

Bilateral agricultural agreement with Norway:

• SACU will face duty free access for certain types of canned fruit: - i.e. certain Pineapples, Pears, Apricots, Peaches and Mixtures of certain fruits of heading 0803 – 0810.

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Specific benefits and opportunities Cont…Specific benefits and opportunities Cont…Specific benefits and opportunities Cont…Specific benefits and opportunities Cont…

Bilateral agricultural agreement with Iceland:

• SACU secured duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.

Further liberalisation through a review clause in all the three bilateral agreements.

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MFN rates vs Preferential ratesMFN rates vs Preferential rates

SwitzerlandSwitzerland

MFN rates vs Preferential ratesMFN rates vs Preferential rates

SwitzerlandSwitzerland

Product code Description MFN

rates

SACU

rates

02089010 Other meat of game animals: Ostrich,

springbok, oryx

Free

3301 Essential oils Free

08051000 Citrus fruit, fresh or dried ; Oranges 6.68% Free

20091110 Fruit juices: - Orange juice 6.91% Free

1010

MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

NorwayNorway

MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

NorwayNorway

Product code Description MFN

rates

SACU

rates

02089094 Other meat: of Ostrich Bound

rate less

15%

3301 Essential oils Free

08051090 Citrus fruit, fresh or dried: Oranges Free Free

2009 Fruit juices and vegetable juices: - Orange

juice

2.98%% Free

1111

MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

IcelandIceland

MFN rates vs Preferential rates Cont…MFN rates vs Preferential rates Cont…

IcelandIceland

Product code Description MFN rates SACU

rates

08 Edible fruit and nuts; peel of citrus fruit or

melons

0.00% Free

3301 Essential oils Free

2009 Fruit juices and vegetable juices 0.00% Free

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Market Access Requirements/ProceduresMarket Access Requirements/ProceduresMarket Access Requirements/ProceduresMarket Access Requirements/Procedures

Compliance with:

Rules of Origin (RoO)

Sanitary and Phytosanitary (SPS) measures, etc

The administration of export permits for quotas - Directorate Marketing.

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Contact detailsContact detailsContact detailsContact details

1. For SACU-EFTA FTA visit:

www.sars.gov.za and follow the links: -

Customs and Excise; Trade; Trade agreements

2. Joyce Letswalo or Xolani Nqaba

Directorate: International Trade (012) 319 8007 or 319 8020

Thank you