AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
Assignment #2
US Trade Relations between South Africa and Tunisia:
Resources, Trade Agreements & Tariff Schedules
By
Melissa Campos
&
Kimberly Johnson
April 29, 2010
-1-
AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
Introduction
This report is a basis for analyzing US trade relations of Apparel and Textiles with South
Africa and Tunisia. Its purpose is to determine whether an emerging Los Angeles-based surf and
skate lifestyle brand should internationalize its operations. Included is a list of resources for
each country ranging from key organizations to governmental resources, as well as US sources.
Trade agreements for both countries are also listed.
Part I: Key Trade Organizations and Governmental Resources
South Africa
1. SouthAfrica.info: http://www.safrica.info/business/trade/relations/traderelations.htm
This website provides information about South Africa including trade relations, importing,
exporting, investing, economy, trends in growth and a list of success stories. This will be useful
in deciding how to conduct trade business with South Africa.
2. South African Revenue Service: http://www.sars.gov.za/home.asp?pid=912
This website provides a list of trade agreements between South Africa and other countries and
nations. It provides information on South Africa’s tax system which will be necessary
information when deciding if trade will be a possible and reasonable decision.
3. South Africa Customs: http://south-africa.visahq.com/customs/
This site provides import and export regulations by South Africa’s customs. This will be helpful
in knowing the documentation requirements and procedures regarding importing and exporting
goods.
4. SouthAfrica.net: http://www.southafrica.net/sat/content/en/us/home
This website is a general overview of the country. It provides information on everything from
culture and heritage to entertainment and leisure. This will be useful in researching the people of
South Africa and the culture and customs of the country.
5. Doing Business in South Africa:
http://www.worldbusinessculture.com/Business-in-South-Africa.html
When conducting business in or with a foreign country it is important to understand their ways of
doing business. This website outlines on how to dress, conduct a meeting, communicate, and
manage with a South African business.
-2-
AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
Part I: Key Trade Organizations and Governmental Resources
Tunisia
1. Tunisia and US Trade Relations:
http://www.economywatch.com/world_economy/tunisia/export-import.html
This website provides information and tables that illustrate Tunisia’s imports, exports and trade
balance with the United States for 2009 and 2010. This information will be helpful in
understanding business transactions between Tunisia and the US covering primary import and
export commodities as well as over all GDP.
2. Business in Tunisia: http://www.businessculture.com/tunisia.html
This website provides information about Tunisia’s customs in relation to business and culture.
This information will be helpful in familiarizing Tunisia’s business etiquette, allowing Americans
to acquire a useful business approach.
3. Marketing in Tunisia: http://www.africacncl.org/market/business/tunisia.html
This website Assist exporters in entering international markets by means of pursuing market
strategy, expanding distribution channels, providing market platforms and organizing sales
promotion activities
4. Tunisia, Imports and Exports: http://www.state.gov/r/pa/ei/bgn/5439.htm#foreign
This website focuses on foreign trade with principal trading partners. This information will
help follow transaction patterns between Tunisia and foreign country competitors, making it
easier to understand import/export supply and demand.
5. Tunisia.net: http://www.tunisia.net/cot/society/af.html
This website is a general overview of Tunisia today. It provides recent general information about
Tunisia’s economy, social and cultural status. This information is helpful in understanding the
overall social involvement of the people and their country.
US and/or International Resources
1. U.N. Comtrade Database http://comtrade.un.org/db/
The database provides detailed information about import and export flows between nations at the
product level. This will be useful in assessing current trade levels and historic growth patterns
between the U.S. and South Africa and Tunisia by product.
-3-
AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
2. CIA World Factsbook https://www.cia.gov/library/publications/the-world-factbook/
This database provides information about 266 world entities including South Africa and Tunisia.
It provides history, government, economy, geography, communications, and military information
as well as detailed maps and a comparison guide.
3. Nation Master http://www.nationmaster.com/index.php
This site is a useful tool used to compare nations to each other. It’s a compilation of
information and data from other databases of countries around the world. This will be useful in
comparing trade benefits and/or potential loses.
4. 2008 National Trade Estimate Report on Foreign Trade Barriers
http://www.ustr.gov/about-us/press-office/reports-and-publications/archives/2008/2008-nationaltrade-estimate-report-fo-0
This is a report that provides information on the impact of foreign practices on the value of US
exports. It also provides information on barriers to trade and actions to be taken to eliminate
them.
5. World Trade Organization http://www.wto.org/english/thewto_e/thewto_e.htm
The WTO is an organization where members of nations come together to create rules and
negotiate on trade. It also offers assistance in trade disputes and training for developing
countries. Both South Africa and Tunisia are members, which indicate both countries are open
to trade negotiations.
6. OTEXA http://otexa.ita.doc.gov/
The Office of Textiles and Apparel provides information on trade, tariff, and importing data for
textiles and apparel into the US. This is useful information when researching requirements for
importing product into the US from South Africa and Tunisia.
7. United States International Trade Commission (USITC)
http://dataweb.usitc.gov/scripts/tariff_current.asp
This website provides Federal trade data and other trade policy information. This resource will
be helpful in gathering statistical data needed to compare historical trading patterns between the
US and the countries in consideration for trade.
8. Trade Status Express
http://tse.export.gov/NTDHome.aspx?UniqueURL=gnzed4ay5syqw455zlpgwv45-2009-4-30-174-10
This website provides global patterns of US merchandise trade and product trade profiles. This
website will helpful in finding statistical data of trading with South Africa and Tunisia, the site is
user friendly.
-4-
AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
9. US Census Bureau: Foreign Trade http://www.census.gov/foreign-trade/www/
This website provides import and export regulations, statistics, commodity classifications, as
well a guide to exporting from the US. This website will be helpful in understanding the basics
to what steps and documentations are needed to export.
Part II: The Following tables identify global and regional trade agreements for South
Africa and Tunisia.
.
South Africa Trade Agreements:
Trade Agreement
Full Title
Membership
Establishment
Benefits
AGOA
The African Growth and Opportunity Act
41 African countries including South Africa
May 18, 2000
 The Act offers tangible incentives for African countries to
continue their efforts to open their economies and build
free markets.
 Expands market access for textile and apparel goods into
the US
Negative Impact
 Some see it as a one-sided agreement with little input from
Africa in its preparation
 Encourages fraud ie. “made in” labels
Resource: http://www.agoa.gov/
Trade Agreement
Full Title
Membership
Establishment
Benefits
EU-SA FTA
Trade Agreement between the European Union (EU) and South
Africa
European Union and South Africa
October 11, 1999
 South Africa is Europe’s largest trading partner in Africa
 Trade volumes have risen by a third since 2004
 The EU provides 70% of all external assistance funds to
South Africa
 Non noted
Negative Impact
Resource:
http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/south-africa/
Trade Agreement
Full Title
SADC
The Southern African Development Community
-5-
AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
Membership
Angola, Botswana, DRC, Lesotho, Madagascar, Malawi,
Mauritius, Mozambique, Namibia, Seychelles, South Africa,
Swaziland, Tanzania, Zambia, Zimbabwe
Establishment
August 17, 2008
Benefits
 Promotes common political values and economic growth
Negative Impact
 Non noted
Resource: http://www.sadc.int/
Trade Agreement
Full Title
Membership
Establishment
Benefits
SACU-EFTA
Southern African Customs Union and European Free Trade
Association
the Republic of Botswana, the Kingdom of Lesotho, the Republic
of Namibia, the Republic of South Africa and the Kingdom of
Swaziland.
1910
 World’s oldest customs union
 Links member states by a single tariff
 No customs duties
 Eliminates barriers
 Non noted
Negative Impact
Resource:
http://www.efta.int/free-trade/free-trade-agreements/southern-african-customs-union.aspx
Tunisia Agreements:
Trade Agreement
Full Title
Membership
GAFTA
Greater Arab Free Trade Area
Tunisia, Bahrain, Libya, Sudan, Egypt, Morocco, Syria, Iraq
Oman, Jordan, Palestine, United Arab Emirates, Kuwait, Qatar,
Yemen, Lebanon and Saudi Arabia
Establishment
January 1, 2005
Benefits
 Non-Double Taxation
 Tax Evasion
 Establishing Common Rules on Income and Capital
Agreement
Negative Impact
 Non noted
Resource: http://www.ecsei-eg.com/GAFTA.pdf
-6-
AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
Trade Agreement
Full Title
Membership
Establishment
Benefits
AMU
Arab Maghreb Union
Tunisia, Algeria, Libya, Mauritania and Morocco
February 17, 1989
 Export duty-free goods do not require any foreign trade
title
 quantitative estimates of the static and dynamic output and
welfare effects
 free circulation of goods, services, and factors
Negative Impact
 Non noted
Resource: http://www.muslimtrade.net/tradeguideline/tunisia/index.html
Trade Agreement
Full Title
Membership
Establishment
Benefits
CENSAD
Community of Sahel-Saharan States
26, including Tunisia
February, 1998
 substantive provisions on intellectual property
 Creation for the African Bank for development and trade
Negative Impact
 Non noted
Resource: http://www.piie.com/publications/chapters_preview/4266/03iie4266.pdf
Trade Agreement
Full Title
Membership
MEFTA / EU-MEFTA
Euro-Mediterranean Free Trade Area
European Union, Morocco, Algeria, Tunisia, Egypt, Jordan
Lebanon, Israel, Palestinian Authority, Syria, Libya,
Mauritania, Iraq
Establishment
Benefits
December 17, 2004
 Free trade relations comprise a population of 455 million
 reduce the trade diversion that results from other
preferential arrangements
 enhance the region’s bargaining power with other countries

Country’s require liberalization, not only for trade in all
goods, including agriculture, but also many services and
foreign direct investment.
Resource: http://www.bilaterals.org/article.php3?id_article=1082
Negative Impact
-7-
AMM 357 Apparel Importing & Exporting
L. Tucker, Professor
Part III: Harmonized Tariff Schedules for South Africa and Tunisia
Heading/
Sub-heading
6102.20.00
Article Description
Women’s or girls’
overcoats, car coats,
capes, cloaks,
anoraks (including
ski-jackets),
windbreakers, and
similar articles,
knitted or crocheted,
of cotton, other than
those of heading 6104
Unit of
Rates of Duty:
Quantity
South Africa
Q1-Dozens 15.9%
Rates of Duty:
Tunisia
15.9%
Conclusion
In accordance to the above data our analysis of US trade relations of Apparel and Textiles
with South Africa and Tunisia is proven by fact to have high potential in internationalizing a Los
Angeles- based surf and skate lifestyle brand. Our resources provide sufficient information that
support basic US social, economic, governmental and cultural standards. The tables illustrate
numbers and percentages of South Africa and Tunisian applied tariffs to the US. These tariff’s
have been identified through the Harmonized Tariff Schedule and represent women or girls
overcoats, car coats, capes, cloaks, anoraks, windbreakers, and similar articles, knitted or
crocheted.
-8-