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INTERNATIONAL TRADE ARRANGEMENTS INTERNATIONAL TRADE ARRANGEMENTS

SA TRADE AGREEMENTS

DIRECTORATE: INTERNATIONAL TRADE

FEBRUARY 2012

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AGREEMENTSAGREEMENTS

WORLD TRADE ORGANISATION

Various agreements – Agriculture, Sanitary & Phytosanitary, Technical Barriers to Trade, Trade Related Intellectual Property Rights, etc.

Rules for trade between members Establishes rules for trade agreements

Types of Agreements

Free Trade Agreement (FTA) – substantially all trade

Preferential Agreements – selected products, between developing countries

Unilateral Agreements – unilateral tariff concessions granted to developing countries

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TRADE AGREEMENTSTRADE AGREEMENTS

Africa

• SACU

• SADC

Americas

• AGOA

• MERCOSUR

Europe

• TDCA (reviewed: EPA)

• EFTA

In Process

India

Tripartite (SADC, Comesa, EAC)

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Southern African Customs Union (SACU)Southern African Customs Union (SACU)

Customs Union established in 1910o Members: RSA, Botswana, Lesotho,

Namibia & Swazilando “New” SACU Agreement - 2002

Agreement provides for:o Common External Tariffo Free flow of goodso Sharing of customs & excise revenueo Common negotiating mechanism – Trade

Agreementso Harmonization of the industrial and trade

policies

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Southern African Development Community (SADC)Southern African Development Community (SADC)

Established in 1980; RSA joined in 1994 SADC Trade Protocol (FTA) implementation: 2000 SADC Trade Protocol (FTA) fully implemented: 2008

by 12 of 14 members With some exceptions, all trade essentially free of

customs duties Electronic system of reporting NTBs

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SA-EU Trade and Development Cooperation Agreement (TDCA)SA-EU Trade and Development Cooperation Agreement (TDCA)

FTA, EU is SA’s main trading partner (EU: currently 28 member states)

TDCA entered into force in 2000 Implemented over 10 (EU) and 12 (RSA) years Substantially all trade, agriculture in EU favor Some sensitive products excluded from liberalization on

both sides South Africa has positive agricultural trade balance with EU TDCA is under review – EPA (Economic Partnership

Agreement)

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OTHER AGREEMENTS: EFTAOTHER AGREEMENTS: EFTA

SACU: EFTA (European Free Trade Area, includes Switzerland, Norway, Lichtenstein & Iceland

FTA – substantially all trade Implementation since 2008 Review currently underway

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OTHER AGREEMENTS: PREFERENTIALOTHER AGREEMENTS: PREFERENTIAL

MERCOSUR (Argentina, Brazil, Uruguay & Paraguay)

Agreement finalized in 2009, not yet implemented

Preferential access for selected products (+ 160 tariff lines)

SACU huge agricultural trade deficit

INDIA

Negotiations recently started

Limited coverage envisaged

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OTHER AGREEMENTS: FTAOTHER AGREEMENTS: FTA

TRIPARTITE FTA

SADC, COMESA, EAC

Full Free Trade Agreement – Substantially all trade

26 Countries

Negotiations started in 2011

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SOUTH AFRICAN AGRICULTURAL TRADER - MILLION

SOUTH AFRICAN AGRICULTURAL TRADER - MILLION

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Exports Imports

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SOUTH AFRICAN AGRICULTURAL EXPORTS: 2010SOUTH AFRICAN AGRICULTURAL EXPORTS: 2010

EU - 2735%

SADC 21%

Comesa16%

China & Hong Kong5%

USA3%

Japan3%

EAC3%

Others13%

Mercosur0%

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SOUTH AFRICAN AGRICULTURAL IMPORTS: 2010SOUTH AFRICAN AGRICULTURAL IMPORTS: 2010

EU29%

Mercosur20%

Thailand8%

China & Hong Kong

6%

USA6%

Malaysia5%

SADC5%

Comesa4%

EAC1%

Others16%

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MARKET ACCESS REQUIREMENTSMARKET ACCESS REQUIREMENTS

Compliance are required on:

o Rules of Origin (SARS Website)o Sanitary and Phytosanitary (SPS) measures and

technical standards always apply o Procedures, e.g. application for permits/quotas or

certification if requiredo Specific forms, related to each agreement, that must

accompany every consignment (may be obtained from SARS).

Full agreements are available online: www.sars.gov.za and follow links:

Customs and Excise

Trade

Trade agreements

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FOR MORE INFORMATION CONTACTFOR MORE INFORMATION CONTACT

Directorate: International TradeDepartment of Agriculture Forestry and Fisheries Tel: 012 319 8452

Fax: 012 319 8001Email: DITR@daff.gov.za