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SACU-EFTA Free Trade Agreement: Enhancing Agricultural Trade Opportunities

The SACU-EFTA Free Trade Agreement promotes economic integration and trade among Southern Africa Customs Union (SACU) and the European Free Trade Association (EFTA) members—Switzerland, Norway, Iceland, and Liechtenstein. Signed in June 2006 and effective since May 2008, it offers significant benefits in agricultural trade, including preferential market access for canned foods and fruits, alongside duty-free arrangements. Compliance with rules of origin and sanitary measures is necessary for accessing these benefits. For more information, visit the relevant government websites or contact the Directorate of International Trade.

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SACU-EFTA Free Trade Agreement: Enhancing Agricultural Trade Opportunities

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  1. SACU-EFTA AGREEMENT Xolani Nqaba Directorate: International Trade

  2. Content • Background • Overview of the Agreement • Specific benefits and opportunities • MFN Rates vs Preferential Rates • Market Access Requirements/Procedures • Contact Details

  3. Background • European Free Trade Association (EFTA): intergovernmental organisations set up for the promotion of free trade and economic integration. • EFTA membership: Iceland, Norway, Liechtenstein and Switzerland. • Major net-importers of agricultural products. • EFTA an important trading partner of SACU.

  4. South Africa’s Agricultural Trade with EFTA ( 1999 – 2007)

  5. Overview of the Agreement • EFTA - SACU negotiations launched in 2003. • The Free Trade Agreement (FTA) signed in June 2006 and entered into force on 1 May 2008. • Agreement to be gradually implemented over nine years.

  6. Overview of the Agreement Cont… • Trade in Agricultural Products • Processed agricultural products included in the Main agreement (as Annex III). • 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. Specific benefits and opportunities • For processed agricultural products EFTA States grant SACU products preference that is not less favourable than that accorded to the European Union. • Bilateral agricultural agreement with Switzerland: • SACU will have better market access for canned oranges, mandarins and apricots. • Duty free access for canned peaches, grapefruit and lemons. • Cider apples and apples for distilling duty free within the limits of a market access quota. • Bilateral agricultural agreement with Norway: • SACU will face duty free access for certain types of canned fruit: - i.e. certain Pineapples, Pears, Apricots, Peaches and Mixtures of certain fruits of heading 0803 – 0810.

  8. Specific benefits and opportunities Cont… • Bilateral agricultural agreement with Iceland: • SACU secured duty free access for all canned fruit, fruit juices, wine, grapes, citrus and apples. • Further liberalisation through a review clause in all the three bilateral agreements.

  9. MFN rates vs Preferential ratesSwitzerland

  10. MFN rates vs Preferential rates Cont…Norway

  11. MFN rates vs Preferential rates Cont…Iceland

  12. Market Access Requirements/Procedures • Compliance with: • Rules of Origin (RoO) • Sanitary and Phytosanitary (SPS) measures, etc • The administration of export permits for quotas - Directorate Marketing.

  13. Contact details • 1. For SACU-EFTA FTA visit: • www.sars.gov.za and follow the links: - • Customs and Excise; Trade; Trade agreements • 2. Joyce Letswalo or Xolani Nqaba • Directorate: International Trade (012) 319 8007 or 319 8020 • Thank you

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