The Trade Agreement between South
Africa and European Union
Presented by: Gert van Rensburg
Directorate: International Trade
Content
• Background
• Overview of the agreement
• Normal (MFN) Duties vs TDCA Duties
• Market Access Requirements
Background
• EU is SA’s main trading partner (+- 42% of SA agri exports)
• EU consists of 27 Member States
• The most important agricultural products SA exported to the EU in 2008
Wine
Fresh Grapes
Fresh Oranges
Fresh Apples
Fresh pears and quinces
• SA trade with the EU under the agreement called the Trade,
Development and Cooperation Agreement (TDCA)
The European Union (EU)
Overview of the TDCA
• TDCA entered into force in 2000
• Tariff changes - from immediate tariff reduction, up to the reduction in
tariffs over 10 years for imports into the EU and 12 years for imports
into South Africa
• 70% of agricultural imports into SA will be duty free after 12 years.
• 61% of agricultural imports into the EU will be duty free after 10 years
(72% if partial liberalization quotas are included).
Normal Duties (MFN) vs. TDCA Duties
(http://ec.europa.eu/taxation_customs/dds/home_en.htm)
(Note the duty may be different at certain periods in the year)
Product
code
Description
02089030
Of game, other than of
rabbits or hares
08051020
Fresh sweet oranges
080520
0805205007 Mandarins
0805203005 Fresh Monreales and
Satsuma's
0805201005 Fresh Clementine's
070110
Potatoes - seed
MFN
(Normal)
duties
TDCA duties
0%
0%
3.20%
0%
16.00%
1,60%
4.50%
0%
Duty reduction schedule of EU : (Annex IV)
TDCA consist out of various Annexes with lists in each Annex
 For your purposes, Annex IV is important
 There is zero duty for the imports of products in lists 0 and 1
 Lists 2 to 4 - import duty reduce in equal steps until 0 duty in 2010
 List 5 (processed agricultural products) - a fixed duty that is partially
liberalized
 List 6 (tariff quotas) – Tariff preferences on limited quantities
 List 7 & 8 (reserve and omission list) - excluded from tariff liberalization
Market Access Requirements
• To qualify for lower duties under the TDCA:
- Rules of Origin (SARS Website)
- Sanitary and Phytosanitary (SPS) measures and technical standards
- Follow - procedures for the application, administration and allocation of
export permits if you want to make use of quotas
- Euro 1 form must accompany each consignment (SARS)
• Full agreement is available online: www.sars.gov.za and follow the links: Customs and Excise; Trade; Trade agreements
For more information contact
• Directorate: International Trade (Europe Desk) of DAFF
Tel: 012 – 319 8452
• E-mail:
Ms J Letswalo – JoyceLe@nda.agric.za
Ms L Rantho – LillianR@nda.agric.za
Mr L Aphane – LeeuA@nda.agric.za
.....
Thank you