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SADC FREE TRADE ARRANGEMENT BENEFITS & OPPORTUNIES Presented by: Sam Legare Africa Trade Relations Desk.

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Presentation on theme: "SADC FREE TRADE ARRANGEMENT BENEFITS & OPPORTUNIES Presented by: Sam Legare Africa Trade Relations Desk."— Presentation transcript:

1 SADC FREE TRADE ARRANGEMENT BENEFITS & OPPORTUNIES Presented by: Sam Legare Africa Trade Relations Desk

2 CONTENTCONTENT Background Overview of SADC FTA Pillars of implementing the Agreement Current implementation status Specific benefits and opportunities Market access requirements Contact Details

3 BackgroundBackground 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

4 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

5 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

6 Tariff Phase Down Status Member States % of tariff lines free of customs duties Date at which the % was achieved SACU99January 2008 Zambia95January 2008 Mozambique94January 2008 Tanzania91January 2008 Mauritius86January 2008 Zimbabwe86January 2008 Madagascar84January 2008 Malawi32July 2007

7 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

8 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

9 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 others SPS measures as equivalent to theirs. - Basis for harmonizing Member States conflicting SPS measures

10 Contact Details Contact Details National Department of Agriculture Directorate : International Trade : Africa Desk Tel No : 012 319 8026/7/8 Fax No : 012 319 8001 Email :

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