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EFTA-Chile FTA Trade in Agricultural Products. Eivind Skjulestad [email protected] Officer, Geneva . Outline. Agriculture policy in the EFTA States EFTA imports of agricultural goods Agriculture goods covered in the Chile – EFTA FTA (and the WTO) Useful information links

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Efta chile fta trade in agricultural products l.jpg

EFTA-Chile FTATrade in Agricultural Products

Eivind Skjulestad

[email protected]

Officer, Geneva


Outline l.jpg
Outline

  • Agriculture policy in the EFTA States

  • EFTA imports of agricultural goods

  • Agriculture goods covered in the Chile – EFTA FTA (and the WTO)

  • Useful information links

  • Examples of exports to the EFTA States


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Agriculture in the EFTA States

  • Not a common agricultural policy, but similar

  • Difficult climatic and geographical conditions

  • High production costs

  • Active policy to maintain a certain level of agricultural production

    • High tariffs on goods from sensitive sectors; meat and dairy

  • Not self-sufficient, large net-importers of agricultural products (Import ca. 50 % of consumption)


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    Agriculture in the EFTA States - Iceland

    • 1,1 % of GDP and 4 % of employment

    • Only 1 percent of the total land area cultivated

    • Bovine and sheep are the main productions, especially tender highland lamb of a very high quality

    • Icelandic horses

    • Very high SPS standards


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    Agriculture in the EFTA States - Norway

    • 1.4 % of GDP and 3.7 % of employment

    • 3 percent cultivated land

    • Approximately 50 000 Farms

    • Average farm size is about 20 hectare

    • Average of 18 Cows on milk farms


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    Continuation - Norway

    • Northernmost country in Europe

      • Difficult production conditions

    • Meat and dairy are the main productions, but also grain and some vegetables

    • Key employer in rural areas

    • Maintain farms


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    Agriculture in the EFTA States - Switzerland

    • 1.3 % of GDP and 4 % of employment

    • Average size:16,7 ha

    • Meat, dairy, fruit, and wine are important productions.

    • Famous cheese


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    Continuation - Switzerland

    • Mountainous landscape, small scale structure agriculture

    • Aims and tasks of agriculture according toarticle 104 of the Federal Constitution


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    EFTA imports of agricultural goods

    • All EFTA States are major net-importers of agricultural goods

    • Main trading partner is the European Union (ca. 70%)

    • Major product groups that are imported:

      • Plants, vegetables, fruits

      • Coffee, tea, spices

      • Processed agricultural products

      • Beverages

      • Tobacco



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    Main EFTA imports from Chile

    • Switzerland

      • Fruits

      • Nuts

      • Extracts of coffee and tea

      • beverages (wine)

    • Norway

      • fruit (mainly grapes)

      • processed products (of fruits, vegetables and nuts)

      • beverages (wine)

    • Iceland

      • beverages (wine)

      • grapes


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    Framework for trade in agricultural goods between EFTA and Chile

    • WTO

    • EFTA - Chile Free Trade Agreement


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    What is WTO Chile

    • the World Trade Organization (WTO)

    • The only international organization dealing with the global rules of trade between nations.

    • Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

    • The goal of WTO is to improve the welfare of the peoples of the member countries.


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    WTO Agriculture Agreement Chile

    • The WTO’s Agriculture Agreement was negotiated in the 1986–94 Uruguay Round and is a significant first step towards fairer competition and a less distorted sector. It includes specific commitments by WTO member governments to improve market access and reduce trade-distorting subsidies in agriculture.

    • Further commitments under the “Doha round” of negotiations, which started in 2001 and is still under negotiations…..


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    Agriculture in the Chile – EFTA FTA Chile

    ARTICLE 1

    Establishment of a free trade area

    The EFTA States and Chile hereby establish a free trade area by means of this Agreement and the complementary agreements on trade in agricultural goods, concurrently concluded between Chile and each individual EFTA State.



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    Free Trade Agreement Chile

    ARTICLE 7

    Coverage [of trade in goods chapter]

    This Chapter applies to trade between the Parties relating to:

    • products falling within chapters 25 through 97 of the Harmonized Commodity Description and Coding System (hereinafter referred to as “the HS”), excluding the products listed in Annex III;

    • products specified in Annex IV, with due regard to the arrangements provided for in that Annex; and

    • fish and other marine products as provided for in Annex V.


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    Agriculture in the Chile – EFTA FTA Chile

    • Processed agricultural products

      • Included in the Main Free Trade Agreement in Annex IV

    • Basic agricultural products

      • Bilateralcomplementary agricultural agreements between each of the EFTA States and Chile


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    Annex IV - Processed agricultural products Chile

    • Annex IV to the EFTA – Chile FTA

    • Covers products like; bread, soups, chocolate, preserved fruits and vegetables, prefabricated food….

    • EFTA offers Chile the same treatment as EFTA offers the EU for these products

    • No industrial protection. Duty based on content of certain raw materials (mainly dairy and meat products)


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    Revised Annex IV Chile

    • EFTA and Chile have merged the five tables into one table with 4 columns, indicating the concessions granted by each country.

    • Extended coverage and improved concessions

    • Still based on EU treatment

    • Will enter into force….



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    Bilateral Chileagreements


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    Complementary Agricultural Agreements Chile

    • Bilateral agreements between the respective EFTA State and Chile

    • Concessions spelled out in detail

    • Separate origin rules annexed to each agreement. (By large the same as the FTA)

    • The Parties undertake to achieve further liberalization

    • WTO Agreement applies, unless otherwise specified


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    Agricultural products not included in the Agreement? Chile

    • Some agricultural products are not included neither in Annex IV, nor in the bilateral agricultural agreements

    • MFN rates apply for these

    • Many of these products are already duty free

    • Confer with the national tariff books to find the exact duty for these products


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    Useful information links Chile

    • The Chile – EFTA Free Trade Agreement (including Annex IV) and the Bilateral Agricultural Agreements:http://efta.int/

    • Icelandic Customs tariff: www.tollur.is

    • Norwegian Customs tariff: www.toll.no

    • Swiss Customs tariff: www.tares.ch


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    Examples: Chile

    • Dried grapes (HS 08.06) into Switzerland:

      • Basic product, bilateral agricultural agreement

    • Beer (HS 22.03) into Iceland:

      • Processed product, Annex IV

    • Yogurt (HS 04.03) into Iceland:

      • Processed product, Annex IV with “*”

      • Look into Icelandic customs tariff

    • Wine (HS 22.04) into Norway:

      • Basic products, bilateral agricultural agreement

    Free

    Free

    Elimination of the industrial element

    Free


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    Questions ? Chile

    • Questions related to agriculture in the EFTA - Chile FTA:Eivind Skjulestad, EFTA [email protected]



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