EFTA-SACU FREE TRADE AGREEMENT (FTA) Xolani Nqaba Directorate: International Trade

2 Content 1. Overview of the EFTA-SACU FTA 2. EFTA’s agricultural trade relations 3. Market Access Requirements/Procedures 4. Conclusion 5. Contact Details

3 1. Overview of EFTA-SACU FTA  What is EFTA?  EFTA membership: Norway, Iceland, Switzerland and Liechtenstein.  The European Free Trade Association (EFTA): set up for the promotion of free trade and economic integration.  Major net-importers of agricultural products.  EFTA is an important trading partner of SACU.

4 1. Overview of the FTA Cont…  EFTA - SACU negotiations launched in  The Free Trade Agreement (FTA) signed in June 2006 and entered into force on 1 May  Agreement to be gradually implemented over a period of nine years.

5 Structure of the FTA EFTA-SACU FTA Main Agreement 3 Complimentary Bilateral Agreements

6 1.1 Agricultural agreements Trade in Agricultural Products  Processed agricultural products covered in the Main agreement  Primary/basic agricultural products covered in separate bilateral agreements between individual EFTA countries and SACU.  Lists of products for which the partner countries grant preferences to one another found in the annexes of the agreements.

7 1.2 Specific benefits and opportunities  Duty-free access for all products covered by the Main agreement, with the exception of processed agricultural products.  Bilateral agreement with Switzerland:  Better market access for canned oranges, mandarins and apricots.  Duty free access for canned peaches, pineapples, grapefruit and lemons.  Cider apples and apples for distilling duty free within the limits of Switzerland’s World Trade Organisation (WTO) market access quota.  Bilateral agreement with Norway:  Duty free access for canned fruit: - Pineapples, Pears, Apricots, Peaches and Mixtures entirely containing certain fruits.

8 Specific benefits and opportunities Cont…  Bilateral agricultural agreement with Iceland:  Duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.

9 2. EFTA’s agricultural trade relations (R millions)

South Africa’s export of fruit, vegetables and canned fruit to Switzerland in Kilograms (2003 – 2008)

South Africa’s exports of fruit, vegetables and canned fruit to Norway in Kilograms (2003 – 2008)

SACU’s competitors to the EFTA market in 2008

13 3. Market Access Requirements/Procedures Compliance with:  Rules of Origin and Customs procedures  Sanitary and Phytosanitary (SPS) measures  Technical regulations

14 4. Conclusion  Need to make the best use of the FTA  Export volumes of canned fruit have consistently decreased (2003 – 2008)  Intensify exports of higher earning products  Keep Exporting!

15 5. Contact details 1. For SACU-EFTA FTA visit: and follow the links: - Customs and Excise; Trade; Trade agreements Joyce Letswalo or Xolani Nqaba or Guguletu Mqambalala Directorate: International Trade (012) or or / Thank you

16 South Africa’s export of fruit, vegetables and canned fruit to Switzerland (2003 – 2008) in R millions

17 South Africa’s export of fruit, vegetables and canned fruit to Norway (2003 – 08) in R millions