INTERNATIONAL TRADE ARRANGEMENTS SA TRADE AGREEMENTS DIRECTORATE INTERNATIONAL

INTERNATIONAL TRADE ARRANGEMENTS SA TRADE AGREEMENTS DIRECTORATE: INTERNATIONAL TRADE NOVEMBER 2010 1

CONTENT q. Americas • AGOA • TIDCA • MERCOSUR q Africa • SACU • SADC q Europe • TDCA • EFTA 2

Africa Growth and Opportunity Act (AGOA) ØSigned by Pres. Clinton in 2000 ØBenefits countries in Sub-Sahara Africa ØExpires in September 2015 ØProvides for: o Unilateral market access; from SSA to USA o Duty free, quota free imports into USA o Includes 800 agricultural tariff lines o Assistance is available to find leads (Trade Hub) ØSA uses 20% of 800 lines – opportunity to improve… 3

SACU-USA Trade, Investment and Development Cooperation Agreement (TIDCA) Ø Signed in 2008 Ø Prepares the grounds for free trade negotiations in future Ø Agreements on specific areas of cooperation between SACU and USA For: o Capacity building in trade o Facilitating the easy flow of trade o Investment opportunities and joint ventures 4

SACU-MERCOSUR Preferential Trade Agreement (PTA) Ø Negotiations completed in 2009 Ø Not yet implemented – in the process of ratification Ø Members are Argentina, Brazil, Uruguay and Paraguay Ø Provides for: o Tariff reductions (between 25% -100%) o 160 lines in agriculture to be exported from SACU Current balance? SACU exports are severely less than imports !! 5

Southern African Customs Union (SACU) Ø Customs Union established in 1910 o Members: RSA, Botswana, Lesotho, Namibia & Swaziland Ø Agreement provides for: o Common External Tariff o Free flow of goods o Sharing of customs revenue o Common negotiating mechanism o Harmonization of the industrial and trade policies 6

Southern African Development Community (SADC) Ø Established in 1980; RSA joined in 1994 Ø SADC has fifteen members (Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe) Ø SADC Free Trade Area was formally launched in August 2008 ØElectronic system of reporting NTBs 7

SA-EU Trade and Development Cooperation Agreement (TDCA) Ø EU is SA’s main trading partner (+ 42% of SA agri exports) Ø EU consists of 27 Member States Ø TDCA entered into force in 2000 Ø 61% of agricultural imports from SA into the EU are duty free in 2010 8

SACU – EFTA FREE TRADE AGREEMENT (FTA) European Free Trade Association ØEFTA members are: Norway, Iceland, Switzerland Liechtenstein Ø They are net-importers of agricultural products. Ø The FTA was signed in June 2006 and entered into force on 1 May 2008. Ø Agreement to be gradually implemented over a period of nine years. 9

MARKET ACCESS REQUIREMENTS o Rules of Origin (SARS Website) o Sanitary and Phyto-sanitary (SPS) measures and technical standards o Procedures, e. g. application for permits/quotas or certification if required o Specific forms, related to each agreement, that must accompany every consignment (may be obtained from SARS). Ø Full agreements are available online: www. sars. gov. za and follow the links: - Customs and Excise; Trade agreements 10

FOR MORE INFORMATION CONTACT Ø Directorate: International Trade of the DAFF Tel: 012 -319 8452 Fax: 012 319 8001 Ø Email: DITR@daff. gov. za 11

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