1. TOOLS FOR MARKET ANALYSIS Presented by: Jacobus Verster Trade Research Desk

2. 2 MARKET ANALYSIS PROCESS Define your product Screen markets Research market characteristics Business contacts Market analysis Quantitative analysis TradeMap & Market Access Map Qualitative analysis Product Map & Country Map

3. 3 QUANTITATIVE ANALYSIS What are the fastest growing markets? Which countries are supplying to those markets? What is the position of our products in those markets? What are the access conditions for those markets? …Where should future research be focused?

4. 4 QUALITATIVE ANALYSIS What are the market characteristics? What are the packaging and labeling requirements? How should the product be priced? How is the product distributed in the target market? What are the options for promoting the product? …How do my target markets operate and can I compete?

5. 5 FRESH VEGETABLE OPPORTUNITIES  A bakkie-trader in Mpumalanga wants to export fresh vegetables to Mozambique.  Which fresh vegetable products are experiencing the highest import growth in Mozambique?  Which of these product/s have trade potential for the bakkie-trader?

6. 6 WWW.TRADEMAP.ORGWWW.TRADEMAP.ORG

7. 7 MOZAMBIQUE – FRESH VEGETABLE IMPORTS

8. 8 MOZAMBIQUE – VEGETABLE UNIT VALUE

9. 9 MOZAMBIQUE – VEGGIE OPPORTUNITIES

10. 10 FRESH VEGETABLE OPPORTUNITIES  A bakkie-trader in Mpumalanga wants to know what tariffs he will face at the Mozambique border for peas?  What tariffs does a competitor from another country face?

11. 11 WWW.MACMAP.ORGWWW.MACMAP.ORG

12. 12 CITRUS OPPORTUNITIES  A citrus producer in Mpumalanga investigates the opportunities for citrus exports to Europe?  What citrus products showed the highest growth?  What countries hold the greatest potential?  What tariffs do South Africa face in these countries?

13. 13 EUROPEAN CITRUS FRUIT IMPORTS

14. 14 EUROPEAN GRAPEFRUIT IMPORTS

15. 15 WWW.MACMAP.ORGWWW.MACMAP.ORG

16. 16 MARKET ANALYSIS TOOLS  Quantitative Tools www.trademap.org - FREE www.macmap.org - FREE  Qualitative Tools www.p-maps.org- FREE www.intracen.org/countries - FREE  Register mas-admintools.intracen.org/accounts/Registration.aspx

17. 17 THANK YOU

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

19. CONTENTCONTENT Background Overview of SADC FTA (SPoT) Tariffs and Non-Tariffs Barriers to Trade (NTBs) Current status of tariff phase down Specific benefits and opportunities Market Access Requirements Contact Details

20. BackgroundBackground Africa Desk – Responsible for RSA agriculture trade relations with African countries The Desk is responsible for agriculture trade negotiations under SACU Agreements and SADC Protocol on Trade Together with the DTI - Facilitate and monitor the implementation of both SACU and SADC Agreements The Desk also facilitate the implementation of RSA BNC with various African countries

21. Overview SADC Protocol on Trade Regional Free Trade Arrangement between 14 Member States ( Exc – Angola and DRC.) Free Trade Agreement = Protocol on Trade signed in 1996 and effected in 2000: Objective: Liberalize and promote intra-SADC trade. 85% total trade free of tariffs by 2008 How? Pillars of trade liberalization as provided in the Protocol: - Tariff phase down - Identification and removal of NTBs to Trade - Simple and trade facilitative Rules of Origin

22. Tariff Phase Down Process Member States submit a Tariff Phase Down Offer Offer – Instrument of implementing the Protocol and gazetted on annual basis (Moz & Tanz) Offers are reciprocal and asymmetric Products are categorized (A, B, C and E) in terms of duration of tariff reductions Includes all but not Sugar – Agreement on Trade in Sugar ( 2001) The offer currently implemented by Mozambique....

23. 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

24. Removal of NTBs Any trade barriers other than tariff - Unharmonised quality and standard for products - Export and import licensing or quotas - Unnecessary export and import bans Most commonly affected agricultural products - Meat products (including chicken) - Dairy products and seasonal vegetables Article 6 of the SPoT – Elimination of all existing NTBs and refrain from imposing new ones NTB Identification and Elimination Mechanism recently adopted in July 2008

25. Benefits & Opportunities (SADC FTA) The FTA afford RSA products preferential market access into the respective SADC members: 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) Thus allows RSA products to access closed markets and thus achieving higher rates of economic growth Powerful tool in fostering regional integration and integration into world economy e.g. EU

26. Market Access Requirements Compliance with SADC Rules of Origin: - RoO specify conditions for products to confer originating status - Ensure that only originating goods enjoys tariff preferences - Goal - Encourage regional value addition Compliance with SPS Measures of the trading partner - 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

27. 27 THANK YOU

28. South Africa and European Union FTA Presented by: Lillian Rantho Europe Desk

29. 29 ContentContent Background Overview of the Agreements Specific benefits and opportunities MFN Rates vs Preferential Rates Market Access Requirements Contact Details

30. 30 BackgroundBackground  European Union (EU) is the main trading partner of South Africa – 50% of SA agricultural was exported to EU in 2007  EU consists of 27 Member States - Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Romania and Bulgaria  South Africa access EU markets through the scheme called Generalized System of Preferences and Trade, Development and Cooperation Agreement  Generalized System of Preferences is scheme whereby EU extend unilateral special treatment to developing countries (SA included)  TDCA – free trade agreement between South Africa and EU

31. 31 Overview of the TDCA  TDCA was signed in 1999 and entered into force in 2000  Liberalization period - Immediate liberalization and transitional liberalization over 10 years by the European Union and 12 years by South Africa  70% of SA agricultural trade duty free after 12 years.  EU will liberalise 61% of agricultural imports from SA (72 if partial liberalization quotas are included).  Agricultural Safeguard Clause  Co-operation in Agriculture  TDCA – subject to review no later five years after entry into force

32. 32 Specific benefits and opportunities - liberalization schedule of EU (Annex IV) List 0Immediate elimination of duties upon implementation (1 January 2000) List 1Elimination over 3 years in 4 equal steps, reaching zero duty on 1 January 2003 List 2Elimination over 10 years, in 11 equal steps, reaching zero on 1 January 2010 List 3 Elimination between years 3 and 10, in 8 equal steps, reaching zero on 1 January 2010 List 4 Elimination between years 5 and 10, in 6 equal steps reaching zero on 1 January 2010 List 5 Processed agricultural products - fixed preferences. Consists of industrial and agricultural component List 6Tariff quotas offering fixed preferences for certain volumes List 7 Reserve list (products considered sensitive) - Excluded from liberalization subject to periodic reviews. List 8Omission list- Protected EU denominations (products related to Geographical Indications and designation of origin of agricultural products)

33. 33 Specific benefits and opportunities cont’d ListsSome of the agricultural products covered in specific lists: List 1Onions (HS 0703), Margarine (HS 1517) etc. List 2Sunflower seed (Hs 1512), Fresh or chilled potatoes (Hs 0701) etc. List 3Cabbages (Hs 0704), Onions (Hs 0703), Lettuce (Hs 0705) etc. List 4Grapes, apricots, cherries, wheat, meat of sheep or goats, meat of swine etc. List 5 Processed Agricultural products – buttermilk (HS 0403), chocolate (HS 1806), bread (HS 1905), etc. List 6 Products are subject to tariff quota’s : cheese and curd, cut flowers, canned pears, apricots and peaches, fruit juices and wine List 7 Live bovine (HS 010290), meat of bovine (HS 0201), rice (HS 1006), maize etc. List 8Cheese and curd, wine of fresh grapes and undenatured ethyl alcohol

34. 34 Trade flows of top 5 SA agricultural exports to EU Product Code (HS8)Description Export values 2006 (R’ million) 22042140Unfortified wine - in containers of 2 litres or less2,040.25 08061000Fresh grapes1,412.30 08051000Fresh oranges781.07 22042940 Unfortified wine - other than in containers of 2 litres or less617.14 08081000Fresh apples603.64

35. 35 MFN Rates vs Preferential Rates Product codeDescriptionMFN duties GSP duties TDCA rates 0805Citrus fruits 08051020Fresh sweet oranges3.20% 0% 080520 Clementines, Monreales and satsumas, Mandarins and wilkings, Tangerines, Other16.00%12.50%3.50% 070110Potatoes - seed4.50%0% 07049010White and red cabbages 12.00 % MIN 0.40 EUR / 100 kg8.50%2.60% 07051100 Cabbage lettuce (head lettuce) 12.00 % MIN 2.00 EUR / 100 kg/br8.50%2.60% 070320Onions and shallots 9.60 % + 120.00 EUR / 100 kg 0% 140420Cotton linters0% 120720Cotton seed0% 120600 Sunflower seeds, whether or not broken0%

36. 36 Market Access Requirements Prerequisites to access preferential treatment -  Comply with Rules of Origin as stipulated in a Protocol to TDCA to qualify for preferential rates: The EUR 1 form must accompany each consignment in order to qualify for TDCA preferences. EUR 1 is obtainable from the applicant’s local South African Revenue Services: Customs and Excise offices.  Comply with Sanitary and Phytosanitary measures and technical standards at the European Union – DoA Directorates: Veterinary Services and Plant Health  Procedures for the application, administration and allocation of export permits for quotas: details to be covered by Directorate Marketing  Full agreement is available online: www.sars.gov.za and follow the links: - Customs and Excise; Trade; Trade agreements www.sars.gov.za

37. 37 THANK YOU

38. SACU-EFTA AGREEMENT Presented by: Xolani Nqaba

39. 39 BackgroundBackground  Association (EFTA): intergovernmental organisations set up for the promotion of free trade and economic integration.  The old EFTA grouping of 1960 has undergone several changes and the new EFTA of 1995 as we know it today has a membership of Iceland, Norway, Liechtenstein and Switzerland.  EFTA is an important trading partner of SACU.  Although EFTA countries are small, they are world leaders in several sectors vital to the global economy. They rank among the countries with the highest GDP per capita in the world. They are developed countries and are major net-importers of agricultural products.  In addition to intra-EFTA free trade, EFTA has negotiated free trade agreements with third countries including with SACU.

40. 40 Overview of the Agreement  Free trade negotiations between EFTA and SACU were launched in 2003. The Free Trade Agreement (FTA) was signed in June 2006 and entered into force on 1 May 2008.  The agreement will be phased-in over a period of nine years.  The Main Agreement consists of seven Chapters with a total of 44 Articles and 8 Annexes. Chapters are as follows: ♦ General Provisions ♦ Trade in Goods ♦ Intellectual Property ♦ Services, Investment, Public Procurement ♦ Economic co-operation and technical assistance ♦ Institutional and Procedural Provisions ♦ Final Provisions

41. 41 Overview of the Agreement Cont… Trade in Goods  Coverage on trade in goods: - Industrial products, Fish and other marine products, Processed agricultural products, and Basic agricultural products.  Processed agricultural products are included in the main agreement (as Annex III) which also covers trade in industrial products including fish and other marine products.  Trade in basic/primary agricultural products is covered in separate bilateral agreements between individual EFTA countries and SACU.  Lists of products for which the partner countries grant concessions to one another are found in the annexes of the agreements.

42. 42 Specific benefits and opportunities  In terms of the main agreement SACU will enjoy immediate duty-free access into EFTA markets for all products covered by this agreement, with the exception of processed agricultural products. SACU shall progressively reduce its customs duties on imports from EFTA (Annexes IV and VII).  In terms of the bilateral agricultural agreement with Switzerland, SACU exporters will have a better market access for canned oranges, mandarins and apricots. They will also face duty free access for canned peaches, grapefruit and lemons. Cider apples and apples for distilling will be duty free within the limits of Switzerland’s World Trade Organisation (WTO) market access quota. There are other products that will benefit as well.  SACU exporters will face duty free access to Norway for canned fruit: - Pineapples (HS code 2009.20), Pears (HS 2008.40), Apricots (HS 2008.50), Peaches (HS 2008.50) and Mixtures entirely containing fruits of heading 0803 – 0810. There are other products included in this agreement that will also benefit.

43. 43 Specific benefits and opportunities Cont…  In terms of the SACU-Iceland bilateral agreement, SACU secured duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples.  Parties undertook to achieve further liberalisation through a review clause in all the three bilateral agreements with SACU with the first review taking place no later than three years after the implementation of the agreements.  Further reviews are to be determined at the first review.

44. 44 Bilateral trade flows between SA and EFTA States Switzerland Product codeDescriptionSouth Africa’s Exports to Switzerland 2006 (R’000)2007 (R’000) 20 Vegetable, fruit, nut, etc food preps 66 807.9584 917.49 22 Beverages, spirits and vinegar 57 549.3747 654.90 08 Edible fruit, nuts, peel of citrus fruit, melons 76 656.5159 671.94 02Meat and edible meat offal 68 665.0357 866.68 07Edible vegetables and certain roots and tubers 10 901.139 616.35

45. 45 Bilateral trade flows between SA and EFTA States Norway Product codeDescriptionSouth Africa’s exports to Norway 2006 (R’000)2007 (R’000) 08 Edible fruit, nuts, peel of citrus fruit, melons 25 140.9745 855.02 22 Beverages, spirits and vinegar 22 512.9029 179.19 20 Vegetable, fruit, nut, etc food preps 1 756.523 722.91 06 Live trees, plants, bulbs, roots, cut flowers etc 1 857.082 992.38 12Oil seed, oleagic fruits, grain, seed, fruit, etc, nes 1 045.862 563.89

46. 46 Bilateral trade flows between SA and EFTA States Iceland Product codeDescriptionSouth Africa’s exports to Iceland 2006 (R’000)2007 (R’000) 22 Beverages, spirits and vinegar 6 100.884 713.35 20 Vegetable, fruit, nut, etc food preps 4 196.874 291.88 08 Edible fruit, nuts, peel of citrus fruit, melons 181.022 275.89 09Coffee, tea, mate and spices 140.79154.54

47. 47 MFN rates vs Preferential rates Switzerland Product codeDescription MFN rates SACU rates 07020010Tomatoes, fresh or chilled1.24%Free 07041010 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled 6.68%Free 08051000Citrus fruit, fresh or dried ; Oranges6.68%Free 12060031Sunflower seeds, whether or not broken: For human consumption 0.13%Free

48. 48 MFN rates vs Preferential rates Cont… Norway Product codeDescriptionMFN rates SACU rates 07011000Potatoes, fresh or chilled; Seed53.92%45.70% 07031012 Onions, shallots, garlic, leeks and other alliaceous veges, fresh or chilled: Onions 16.14%13.77% 08051010 Citrus fruit, fresh or dried: Oranges; For feed purpose 42.94%38.50% 12060010Sunflower seeds, whether or not broken: For feed purpose 87.54%78.56%

49. 49 MFN rates vs Preferential rates Cont… Iceland Product code DescriptionMFN rates SACU rates 070320 Onions, shallots, garlic, leeks and other alliaceous veges, fresh or chilled: Garlic 30.00%Free 08 Edible fruit and nuts; peel of citrus fruit or melons 0.00%Free 110812 Products of the milling industry; malt; starches; inulin; wheat gluten: Maize 0.00%Free 1701Sugars and sugar confectionery: Cane or beet sugar and chemically pure sucrose, in solid form 0.00%Free

50. 50 Market Access Requirements/Procedures Compliance with:  Rules of Origin (RoO)  Sanitary and Phytosanitary (SPS) measures, etc The administration of export permits for quotas is handled by Directorate Marketing.

51. 51 BackgroundBackground  SACU and EFTA: these are intergovernmental organisations set up for the promotion of free trade and economic integration to the benefit of its member states.  The old EFTA grouping of 1960 has undergone several changes and the new EFTA of 1995 as we know it today has a membership of Iceland, Norway, Liechtenstein and Switzerland.  Although EFTA countries are small, they are world leaders in several sectors vital to the global economy. They rank among the countries with the highest GDP per capita in the world. They are developed countries and are major net-importers of agricultural products.  SACU is an important trading partner of the EFTA States. (how much trade takes place?) In addition to intra-EFTA free trade, EFTA has negotiated free trade agreements with third countries including with SACU.

52. 52 ALL ENQUIRIES RELATED TO D:ITR Directorate: International Trade Tel: 012 319 8452 Fax: 012 319 8001 E-mail: info.ditr@nda.gov.zainfo.ditr@nda.gov.za

53. 53 CONTACT DETAILS EUROPE DESK Ms J Letswalo: 012 319 8007, JoyceLe@nda.agric.za Ms L Rantho: 012 319 8024, LillianR@nda.agric.za Mr Xolani Nqaba: 012 394 8020, XolaniN@nda.agric.za

54. CONTACT DETAILS AFRICA DESK CONTACT DETAILS AFRICA DESK Tel No : 012 319 8026/7 Fax No : 012 319 8001 Email : SamLe@nda.agric.zaSamLe@nda.agric.za For SACU-EFTA FTA visit: www.sars.gov.zawww.sars.gov.za and follow the links: - Customs and Excise; Trade; Trade Agreements

55. 55 THANK YOU