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TOOLS FOR MARKET ANALYSIS. Presented by: Jacobus Verster Trade Research Desk. MARKET ANALYSIS PROCESS. Market analysis. Business contacts. Research market characteristics. Screen markets. Qualitative analysis Product Map & Country Map. Define your product. Quantitative analysis
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TOOLS FOR MARKET ANALYSIS Presented by: Jacobus Verster Trade Research Desk
MARKET ANALYSIS PROCESS Market analysis Business contacts Research market characteristics Screen markets Qualitative analysis Product Map & Country Map Define your product Quantitative analysis TradeMap & Market Access Map
QUANTITATIVE ANALYSIS • What are the fastest growing markets? • Which countries are supplying to those markets? • What is the position of our products in those markets? • What are the access conditions for those markets? • …Where should future research be focused?
QUALITATIVE ANALYSIS • What are the market characteristics? • What are the packaging and labeling requirements? • How should the product be priced? • How is the product distributed in the target market? • What are the options for promoting the product? • …How do my target markets operate and can I compete?
FRESH VEGETABLE OPPORTUNITIES • A bakkie-trader in Mpumalanga wants to export fresh vegetables to Mozambique. • Which fresh vegetable products are experiencing the highest import growth in Mozambique? • Which of these product/s have trade potential for the bakkie-trader?
FRESH VEGETABLE OPPORTUNITIES • A bakkie-trader in Mpumalanga wants to know what tariffs he will face at the Mozambique border for peas? • What tariffs does a competitor from another country face?
CITRUS OPPORTUNITIES • A citrus producer in Mpumalanga investigates the opportunities for citrus exports to Europe? • What citrus products showed the highest growth? • What countries hold the greatest potential? • What tariffs do South Africa face in these countries?
MARKET ANALYSIS TOOLS • Quantitative Tools • www.trademap.org - FREE • www.macmap.org - FREE • Qualitative Tools • www.p-maps.org - FREE • www.intracen.org/countries - FREE • Register • mas-admintools.intracen.org/accounts/Registration.aspx
SADC FREE TRADE ARRANGEMENTBENEFITS & OPPORTUNIES Presented by: Sam Legare Africa Trade Relations Desk
CONTENT Background Overview of SADC FTA (SPoT) Tariffs and Non-Tariffs Barriers to Trade (NTBs) Current status of tariff phase down Specific benefits and opportunities Market Access Requirements Contact Details
Background Africa Desk – Responsible for RSA agriculture trade relations with African countries The Desk is responsible for agriculture trade negotiations under SACU Agreements and SADC Protocol on Trade Together with the DTI - Facilitate and monitor the implementation of both SACU and SADC Agreements The Desk also facilitate the implementation of RSA BNC with various African countries
Overview SADC Protocol on Trade Regional Free Trade Arrangement between 14 Member States ( Exc – Angola and DRC.) Free Trade Agreement = Protocol on Trade signed in 1996 and effected in 2000: Objective: Liberalize and promote intra-SADC trade. 85% total trade free of tariffs by 2008 How? Pillars of trade liberalization as provided in the Protocol: - Tariff phase down - Identification and removal of NTBs to Trade - Simple and trade facilitative Rules of Origin
Tariff Phase Down Process Member States submit a Tariff Phase Down Offer Offer – Instrument of implementing the Protocol and gazetted on annual basis (Moz & Tanz) Offers are reciprocal and asymmetric Products are categorized (A, B, C and E) in terms of duration of tariff reductions Includes all but not Sugar – Agreement on Trade in Sugar ( 2001) The offer currently implemented by Mozambique..
Removal of NTBs Any trade barriers other than tariff - Unharmonised quality and standard for products - Export and import licensing or quotas - Unnecessary export and import bans Most commonly affected agricultural products - Meat products (including chicken) - Dairy products and seasonal vegetables Article 6 of the SPoT – Elimination of all existing NTBs and refrain from imposing new ones NTB Identification and Elimination Mechanism recently adopted in July 2008
Benefits & Opportunities(SADC FTA) The FTA afford RSA products preferential market access into the respective SADC members: FTA provides for elimination of all forms of trade barriers: - Tariffs ( >85% of total trade is currently free) - NTBs ( Elimination Mechanism already in place) - TBTs ( Common technical regulation framework) Thus allows RSA products to access closed markets and thus achieving higher rates of economic growth Powerful tool in fostering regional integration and integration into world economy e.g. EU
Market Access Requirements Compliance with SADC Rules of Origin: - RoO specify conditions for products to confer originating status - Ensure that only originating goods enjoys tariff preferences - Goal - Encourage regional value addition Compliance with SPS Measures of the trading partner - SPS Agreement adopted - Obligate Member States to accept other’s SPS measures as equivalent to theirs. - Basis for harmonizing Member State’s conflicting SPS measures
South Africa and European Union FTA Presented by: Lillian Rantho Europe Desk
Content • Background • Overview of the Agreements • Specific benefits and opportunities • MFN Rates vs Preferential Rates • Market Access Requirements • Contact Details
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
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
Specific benefits and opportunities - liberalization schedule of EU (Annex IV)
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
SACU-EFTA AGREEMENT Presented by: Xolani Nqaba
Background • Association (EFTA): intergovernmental organisations set up for the promotion of free trade and economic integration. • The old EFTA grouping of 1960 has undergone several changes and the new EFTA of 1995 as we know it today has a membership of Iceland, Norway, Liechtenstein and Switzerland. • EFTA is an important trading partner of SACU. • Although EFTA countries are small, they are world leaders in several sectors vital to the global economy. They rank among the countries with the highest GDP per capita in the world. They are developed countries and are major net-importers of agricultural products. • In addition to intra-EFTA free trade, EFTA has negotiated free trade agreements with third countries including with SACU.
Overview of the Agreement • Free trade negotiations between EFTA and SACU were launched in 2003. • The Free Trade Agreement (FTA) was signed in June 2006 and entered into force on 1 May 2008. • The agreement will be phased-in over a period of nine years. • The Main Agreement consists of seven Chapters with a total of 44 Articles and 8 Annexes. Chapters are as follows: • ♦ General Provisions • ♦ Trade in Goods • ♦ Intellectual Property • ♦ Services, Investment, Public Procurement • ♦ Economic co-operation and technical assistance • ♦ Institutional and Procedural Provisions • ♦ Final Provisions
Overview of the Agreement Cont… • Trade in Goods • Coverage on trade in goods: - Industrial products, Fish and other marine products, Processed agricultural products, and Basic agricultural products . • Processed agricultural products are included in the main agreement (as Annex III) which also covers trade in industrial products including fish and other marine products. • Trade in basic/primary agricultural products is covered in separate bilateral agreements between individual EFTA countries and SACU. • Lists of products for which the partner countries grant concessions to one another are found in the annexes of the agreements.
Specific benefits and opportunities • In terms of the main agreement SACU will enjoy immediate duty-free access into EFTA markets for all products covered by this agreement, with the exception of processed agricultural products. SACU shall progressively reduce its customs duties on imports from EFTA (Annexes IV and VII). • In terms of the bilateral agricultural agreement with Switzerland, SACU exporters will have a better market access for canned oranges, mandarins and apricots. They will also face duty free access for canned peaches, grapefruit and lemons. Cider apples and apples for distilling will be duty free within the limits of Switzerland’s World Trade Organisation (WTO) market access quota. There are other products that will benefit as well. • SACU exporters will face duty free access to Norway for canned fruit: - Pineapples (HS code 2009.20), Pears (HS 2008.40), Apricots (HS 2008.50), Peaches (HS 2008.50) and Mixtures entirely containing fruits of heading 0803 – 0810. There are other products included in this agreement that will also benefit.
Specific benefits and opportunities Cont… • In terms of the SACU-Iceland bilateral agreement, SACU secured duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples. • Parties undertook to achieve further liberalisation through a review clause in all the three bilateral agreements with SACU with the first review taking place no later than three years after the implementation of the agreements. • Further reviews are to be determined at the first review.
Market Access Requirements/Procedures • Compliance with: • Rules of Origin (RoO) • Sanitary and Phytosanitary (SPS) measures, etc • The administration of export permits for quotas is handled by Directorate Marketing.
