South Africa and European
Union FTA
Presented by: Lillian Rantho
Directorate: International Trade
Content
• Background
• Overview of the Agreements
• Specific benefits and opportunities
• MFN Rates vs Preferential Rates
• Market Access Requirements
• Contact Details
2
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
3
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
4
Specific benefits and opportunities - liberalization
schedule of EU (Annex IV)
List 0
Immediate elimination of duties upon implementation (1 January 2000)
List 1
Elimination over 3 years in 4 equal steps, reaching zero duty on 1 January 2003
List 2
Elimination over 10 years, in 11 equal steps, reaching zero on 1 January 2010
List 3
Elimination between years 3 and 10, in 8 equal steps, reaching zero on 1 January
2010
List 4
Elimination between years 5 and 10, in 6 equal steps reaching zero on 1 January
2010
List 5
Processed agricultural products - fixed preferences. Consists of industrial and
agricultural component
List 6
Tariff quotas offering fixed preferences for certain volumes
List 7
Reserve list (products considered sensitive) - Excluded from liberalization subject to
periodic reviews.
List 8
Omission list- Protected EU denominations (products related to Geographical
Indications and designation of origin of agricultural products)
5
Specific benefits and opportunities cont’d
Lists
Some of the agricultural products covered in specific lists:
List 1
Onions (HS 0703), Margarine (HS 1517) etc.
List 2
Sunflower seed (Hs 1512), Fresh or chilled potatoes (Hs 0701) etc.
List 3
Cabbages (Hs 0704), Onions (Hs 0703), Lettuce (Hs 0705) etc.
List 4
Grapes, apricots, cherries, wheat, meat of sheep or goats, meat of swine etc.
List 5
Processed Agricultural products – buttermilk (HS 0403), chocolate (HS 1806),
bread (HS 1905), etc.
List 6
Products are subject to tariff quota’s : cheese and curd, cut flowers, canned
pears, apricots and peaches, fruit juices and wine
6
List 7
Live bovine (HS 010290), meat of bovine (HS 0201), rice (HS 1006), maize etc.
List 8
Cheese and curd, wine of fresh grapes and undenatured ethyl alcohol
Trade flows of top 5 SA agricultural exports to EU
7
Product
Code (HS8)
Export values
2006 (R’ million)
Description
22042140
Unfortified wine - in containers of 2 litres or less
2,040.25
08061000
Fresh grapes
1,412.30
08051000
Fresh oranges
781.07
22042940
Unfortified wine - other than in containers of 2
litres or less
617.14
08081000
Fresh apples
603.64
MFN Rates vs Preferential Rates
Product
code
Description
0805
Citrus fruits
08051020
Fresh sweet oranges
080520
Clementines, Monreales and
satsumas, Mandarins and
wilkings, Tangerines, Other
070110
Potatoes - seed
MFN duties
TDCA
rates
3.20%
0%
16.00%
12.50%
3.50%
4.50%
0%
0%
White and red cabbages
12.00 % MIN
0.40 EUR / 100
kg
8.50%
2.60%
Cabbage lettuce (head
lettuce)
12.00 % MIN
2.00 EUR / 100
kg/br
8.50%
2.60%
070320
Onions and shallots
9.60 % + 120.00
EUR / 100 kg
0%
140420
Cotton linters
0%
0%
120720
Cotton seed
0%
0%
120600
Sunflower seeds, whether or
not broken
0%
0%
07049010
07051100
8
GSP
duties
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
9
Contact Details
 Directorate: International Trade (Europe) of DoA
– Ms J Letswalo, 012 319 8007, JoyceLe@nda.agric.za
– Ms L Rantho, 012 319 8024, LillianR@nda.agric.za
10