1. The Trade Agreement between South Africa and European Union Presented by: Gert van Rensburg Directorate: International Trade

2. Content Background Overview of the agreement Normal (MFN) Duties vs TDCA Duties Market Access Requirements

3. Background EU is SA’s main trading partner (+- 42% of SA agri exports) EU consists of 27 Member States The most important agricultural products SA exported to the EU in 2008 SA trade with the EU under the agreement called the Trade, Development and Cooperation Agreement (TDCA) Wine Fresh Grapes Fresh Oranges Fresh Apples Fresh pears and quinces

4. The European Union (EU)

5. Overview of the TDCA TDCA entered into force in 2000 Tariff changes - from immediate tariff reduction, up to the reduction in tariffs over 10 years for imports into the EU and 12 years for imports into South Africa 70% of agricultural imports into SA will be duty free after 12 years. 61% of agricultural imports into the EU will be duty free after 10 years (72% if partial liberalization quotas are included).

6. Normal Duties (MFN) vs. TDCA Duties ( http://ec.europa.eu/taxation_customs/dds/home_en.htm) (Note the duty may be different at certain periods in the year) Product codeDescription MFN (Normal) duties TDCA duties 02089030 Of game, other than of rabbits or hares 0% 08051020Fresh sweet oranges3.20%0% 080520 0805205007 0805203005 0805201005 Mandarins Fresh Monreales and Satsuma's Fresh Clementine's16.00%1,60% 070110Potatoes - seed4.50%0%

7. Duty reduction schedule of EU : (Annex IV)  TDCA consist out of various Annexes with lists in each Annex  For your purposes, Annex IV is important  There is zero duty for the imports of products in lists 0 and 1  Lists 2 to 4 - import duty reduce in equal steps until 0 duty in 2010  List 5 (processed agricultural products) - a fixed duty that is partially liberalized  List 6 (tariff quotas) – Tariff preferences on limited quantities  List 7 & 8 (reserve and omission list) - excluded from tariff liberalization

8. Market Access Requirements To qualify for lower duties under the TDCA: - Rules of Origin (SARS Website) - Sanitary and Phytosanitary (SPS) measures and technical standards - Follow - procedures for the application, administration and allocation of export permits if you want to make use of quotas -Euro 1 form must accompany each consignment (SARS) Full agreement is available online: www.sars.gov.za and follow the links: - Customs and Excise; Trade; Trade agreements

9. For more information contact Directorate: International Trade (Europe Desk) of DAFF Tel: 012 – 319 8452 E-mail: Ms J Letswalo – JoyceLe@nda.agric.za Ms L Rantho – LillianR@nda.agric.za Mr L Aphane – LeeuA@nda.agric.za

10. ..... Thank you