Workshop on Trade Potential with Turkey General Provisions of the FTA Market Access for Goods Rooma Narrainen Manager-Trade Division 24 June 2013 Market Access for Goods 1. Trade between Mauritius and Turkey 2. Customs Union between Turkey and the EC 3. Market Access Provisions 4. Turkey - Tariff Liberalisation Schedule • • Industrial products Agro-industrial products 5. Mauritius – Tariff Liberalisation Schedule • • Tariff phase-down schedule List of sensitive products Trade Agreements Europe Economic Partnership Agreement (EPA) USA Africa Growth & Opportunity Act (AGOA) Regional SADC, COMESA, Indian Ocean Commission Bilateral Pakistan (PTA) and Turkey (FTA) Other Generalized System of Preferences - GSP (Japan, Switzerland,…) Trade between Mauritius and Turkey Main Imports Main Exports Denim/Cotton fabrics, Garments, Pharmaceutical products, Plastic table ware Rs. Millions Wheat Flour, Portland Cement Pharmaceuticals, Iron bars, Cotton, Electric cables,…. 1,600 1,400 1,200 1,000 800 Imports 600 Exports 400 200 0 2012 2011 2010 2009 Customs Union between Turkey and the EC Free movement of goods between EC and Turkey for all industrial products European Union Being in a Customs Union, Turkey has to align its trade regime to the EC Harmonised trade regime with entire Europe Turkey Market Access Provisions Tariff liberalisation schedule applicable in the FTA Turkey’s tariff commitments - Industrial Goods (Chapters 25-97) - Agro-industry (Specific list of products) Mauritius’ tariff commitments - Tariff phase-down schedule (96% of tariff lines) - List of Sensitive Products (4% of tariff lines) Rules of Origin • Goods need to meet origin criteria and be covered by a Certificate of Origin EUR1 issued by the Customs Authorities TURKEY Tariff Liberalisation Schedule Turkey – Tariff Liberalisation Schedule (1) a. All Industrial Goods (Chapters 25-97*) Immediate duty-free access as from 1 June 2013 *Except for 68 tariff lines (Annex III) • Knitted and Woven Garments (Shirts, T-shirts, Jerseys,…) and Household Linen • Duties will be abolished at equal rates over 4 years Main exports duty-free Denim /Cotton Fabrics, Jewellery, Leather products, … Turkey - Tariff Liberalisation Schedule (2) b. Agro-Industrial Products (Chapters 1-24) Negotiated on a ‘Request and Offer’ basis Selected list of products based on actual/potential exports • Fish and fish products, pineapples, litchis, palm heart, pasta, sweet biscuits, wafers, beverages, food preparations,… Complete list of products (Annex VI– Table E) Tariff Reductions (ranging from 20% to 100%) Quotas (tons, litres…) Subject to Import Permit/Licence in Turkey Further concessions in agriculture to be considered in future negotiations (Article 16) Turkey – Tariff reduction on some products Tariff Quota (Volume) Reduction in Duty Fresh and Chilled Tuna/ other Fish 385 tons 50%- 100% 0601-0604 Fresh Flowers 130 tons 100% ex. 0709 Palm hearts 20 tons 100% 0804.30 Pineapples 100 tons 100% 1604.14 Preserved tuna/fish Unlimited 20% 1902 Pasta 50 tons 100% 1905.31 Sweet biscuits 20 tons 100% 1905.32 Wafers 20 tons 100% 2203 Beer 1000 hl 100% HS Code Description 0303/ 0304 MAURITIUS Tariff Liberalisation Schedule Mauritius – Tariff Liberalisation Schedule (1) Aligned with the EPA Tariff Reduction Schedule covering all products Annex IV and Annex VI Product coverage – 96% of tariff lines Gradual phasing out of duties over a period 10 years Sensitive products excluded (4%) Mauritius – Tariff Liberalisation Schedule (2) Sensitive Products No liberalisation % of Tariff Lines 4.4% List A Raw Materials and Capital Goods List B Intermediate Goods Liberalised as To be liberalised from 1 June 2013 by 2017 24.5% 29.1% List C Finished Products To be liberalised by 2022 42% Mauritius -Tariff Liberalisation Schedule (3) I. List A – Raw Materials and Capital Goods Immediate Liberalisation List as from 1 June 2013 II. List B – Intermediate Goods Gradual Liberalisation from 2013 to 2017 Duty Reduction (%) 2013 2014 2015 2017 25% 50% 75% 100% Mauritius –Tariff Liberalisation Schedule (4) III. List C – Finished Goods Gradual Liberalisation from 2013 to 2022 Duty Reduction (%) 2013 2015 2018 2020 2022 10% 25% 50% 75% 100% Mauritius – List of Sensitive Products Similar to EPA Sensitive List List of Sensitive Products excluded from tariff liberalisation (approx. 200 tariff lines) Industrial Products (Annex V) Paints/Varnishes, Soap /Detergents, Plastics tubes and pipes, Iron/Steel products, Furniture,…. Agro-Industry (Annex VI – Table D) Fresh/Chilled Chicken, Tea, Margarine, Beverages, Biscuits,…… Summary Tariff Reduction - Annexes IV and VI- List A/B/C Import List of Sensitive Products (Excluded) - Annex V and Annex VI -Table D Industrial Products (Duty-Free) Export Garments (Reduction over 4 years) - Annex III Agricultural Products (Annex VI –Table E) FTA Mauritius-Turkey and Annexes http://www.mcci.org