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EFTA-SACU FREE TRADE AGREEMENT (FTA)

EFTA-SACU FREE TRADE AGREEMENT (FTA). Xolani Nqaba Directorate: International Trade. Content. 1. Overview of the EFTA-SACU FTA 2. EFTA’s agricultural trade relations 3. Market Access Requirements/Procedures 4. Conclusion 5. Contact Details. 1. Overview of EFTA-SACU FTA. What is EFTA?

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EFTA-SACU FREE TRADE AGREEMENT (FTA)

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  1. EFTA-SACU FREE TRADE AGREEMENT (FTA) Xolani Nqaba Directorate: International Trade

  2. Content 1. Overview of the EFTA-SACU FTA 2. EFTA’s agricultural trade relations 3. Market Access Requirements/Procedures 4. Conclusion 5. Contact Details

  3. 1. Overview of EFTA-SACU FTA What is EFTA? EFTA membership: Norway, Iceland, Switzerland and Liechtenstein. The European Free Trade Association (EFTA): set up for the promotion of free trade and economic integration. Major net-importers of agricultural products. EFTA is an important trading partner of SACU.

  4. 1. Overview of the FTA Cont… 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 a period of nine years.

  5. Structure of the FTA

  6. 1.1 Agricultural agreements Trade in Agricultural Products Processed agricultural products covered in the Main agreement 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.

  7. 1.2 Specific benefits and opportunities Duty-free access for all products covered by the Main agreement, with the exception of processed agricultural products. Bilateral agreement with Switzerland: Better market access for canned oranges, mandarins and apricots. Duty free access for canned peaches, pineapples, grapefruit and lemons. Cider apples and apples for distilling duty free within the limits of Switzerland’s World Trade Organisation (WTO) market access quota. Bilateral agreement with Norway: Duty free access for canned fruit: - Pineapples, Pears, Apricots, Peaches and Mixtures entirely containing certain fruits.

  8. Specific benefits and opportunities Cont… Bilateral agricultural agreement with Iceland: Duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.

  9. 2. EFTA’s agricultural trade relations (R millions)

  10. 2.1 South Africa’s export of fruit, vegetables and canned fruit to Switzerland in Kilograms (2003 – 2008)

  11. 2.2 South Africa’s exports of fruit, vegetables and canned fruit to Norway in Kilograms (2003 – 2008)

  12. 2.3 SACU’s competitors to the EFTA market in 2008

  13. 3. Market Access Requirements/Procedures Compliance with: Rules of Origin and Customs procedures Sanitary and Phytosanitary (SPS) measures Technical regulations

  14. 4. Conclusion • Need to make the best use of the FTA • Export volumes of canned fruit have consistently decreased (2003 – 2008) • Intensify exports of higher earning products • Keep Exporting!

  15. 5. Contact details 1. For SACU-EFTA FTA visit: www.sars.gov.za and follow the links: - Customs and Excise; Trade; Trade agreements 2. www.efta.int 3. www.sacu.int 4. Joyce Letswalo or Xolani Nqaba or Guguletu Mqambalala Directorate: International Trade (012) 319 8007 or 319 8020 or 319 8009 info.ditr@nda.agric.za / info.ditr@daff.gov.za www.daff.gov.za Thank you

  16. South Africa’s export of fruit, vegetables and canned fruit to Switzerland (2003 – 2008) in R millions

  17. South Africa’s export of fruit, vegetables and canned fruit to Norway (2003 – 08) in R millions

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