SADC FREE TRADE ARRANGEMENT
BENEFITS & OPPORTUNIES
Presented by: Sam Legare
Africa Trade Relations Desk
CONTENT
• Background
• Overview of SADC FTA
• Pillars of implementing the Agreement
• Current implementation status
• Specific benefits and opportunities
• Market access requirements
• Contact Details
Background
• Mandate – Develop, promote and support beneficial
participation of SA agriculture in
international trade
• The Desk – Responsible for SA agriculture trade
relations with African countries
• Through the implementation:
- SACU Agreement
- SADC FTA (Protocol on Trade)
- Other trade cooperation agreements
• Together with the DTI - Facilitate and monitor the
implementation of the above Agreements
Overview SADC Free Trade Area
• Regional Free Trade Agreement between 14
Member States ( Exc – Angola and DRC.)
• The agreement establishing SADC FTA = Protocol on
Trade : signed in 1996 and effected in 2000
• Objective: Liberalize and promote intra-SADC
trade.
• Goal : 85% total trade taking place free of tariffs and
other forms of trade barriers by 2008
• How? – Pillars of liberalizing and promoting trade:
- Reduce tariffs among themselves (Tariff phase down
- Identify and remove NTBs against themselves
- Adopt simple and trade facilitative Rules of Origin
Tariff Phase Down Process
• All Member States submitted their Tariff Phase
Down Offers ( 2000)
• Offer – Commitment showing gradual (How & When)
elimination of tariffs on all products traded
• Offer – Instrument of implementing the FTA and is
gazetted by Member States on annual basis
• Products are categorized (A, B, C and E) in terms of
duration of tariff reductions
• Offers are reciprocal and asymmetric.
• SACU (RSA, Botswana, Lesotho, Namibia and
Swaziland) made a single offer
Tariff Phase Down Status
Member
States
% of tariff lines free of
customs duties
Date at which the % was
achieved
SACU
99
January 2008
Zambia
95
January 2008
Mozambique
94
January 2008
Tanzania
91
January 2008
Mauritius
86
January 2008
Zimbabwe
86
January 2008
Madagascar
84
January 2008
Malawi
32
July 2007
Identification & removal of
NTBs
• Any trade barrier other than a tariff
- Different quality, standard, technical regulations,
etc required for same products
- Unnecessary export or import licensing, quotas
bans, etc.
- Ad hoc import / export requirements without
notifying trading partners in time
• Agreement – Identify and eliminate all forms of
NTBs and refrain from imposing new ones
• NTB Identification and Elimination Mechanism
recently adopted in July 2008
Benefits & Opportunities
(SADC FTA)
• The FTA afford RSA products preferential market
access into each SADC Member State:
• FTA provides for elimination of all forms of trade
barriers:
- Tariffs ( >85% of total trade is currently free)
- NTBs ( Elimination Mechanism already in place)
- TBTs ( Common technical regulation framework)
• Powerful tool in fostering regional integration
and integration into world economy e.g. EU
Market Access Requirements
• Compliance with SADC Rules of Origin:
- Ensure that only originating goods enjoys tariff
preferences
- RoO specify conditions for products to confer
originating status
- Goal - Encourage regional value addition
• Compliance with SPS Measures of the trading
partner
- Measures adopted by countries to protect their
animal, plant and human from foreign diseases
- SPS Agreement adopted: Obligate Member States
to accept other’s SPS measures as equivalent to
theirs.
- Basis for harmonizing Member State’s
conflicting SPS measures
Contact Details
• National Department of Agriculture
• Directorate : International Trade : Africa Desk
• Tel No : 012 319 8026/7/8
• Fax No : 012 319 8001
• Email : SamLe@nda.agric.za