Regional Seminar on EU- - Regional Seminar on EU SADC EPA SADC EPA South Africa and Tariff Alignment South Africa and Tariff Alignment Catherine Grant, SAIIA Catherine Grant, SAIIA
Why Tariff Alignment? Why Tariff Alignment? � South Africa and EU Trade, Development South Africa and EU Trade, Development � and Cooperation Agreement (TDCA) and Cooperation Agreement (TDCA) � Interim EPA signed by Botswana, Lesotho, Interim EPA signed by Botswana, Lesotho, � Mozambique and Swaziland (initialled by Mozambique and Swaziland (initialled by Angola and Namibia) Angola and Namibia) � Opportunity to restore integrity of SACU Opportunity to restore integrity of SACU � common external tariff common external tariff � Administrative difficulties in implementing Administrative difficulties in implementing � IEPA if tariff not aligned for whole of SACU IEPA if tariff not aligned for whole of SACU
TDCA vs. IEPA TDCA vs. IEPA � Alignment of TDCA market access for EU Alignment of TDCA market access for EU � (trade chapter) and IEPA offer from (trade chapter) and IEPA offer from Botswana, Lesotho and Swaziland (IEPA Botswana, Lesotho and Swaziland (IEPA Annex 3) Annex 3) � IEPA based on TDCA IEPA based on TDCA � � Key difference in areas of sensitive Key difference in areas of sensitive � products products � TDCA due for full implementation by 2012 TDCA due for full implementation by 2012 � � 86% of EU products will enter SA duty 86% of EU products will enter SA duty- -free free �
Tariff Differences Tariff Differences � Difference of 54 product lines between Difference of 54 product lines between � TDCA and IEPA TDCA and IEPA � Eggs, honey, juice, beer, soap, candles, Eggs, honey, juice, beer, soap, candles, � paper [including toilet paper], slide paper [including toilet paper], slide fasteners and cotton fasteners and cotton � Extended phase Extended phase- -downs for some to 2015 downs for some to 2015 � � Few lines to 2018 Few lines to 2018 – – gingerbread, waffles, gingerbread, waffles, � rusks rusks
Additional Market Access Additional Market Access � TDCA Review provided scope for EU to request TDCA Review provided scope for EU to request � additional market access to SA additional market access to SA � Agreement reached on fish in July 2010 Agreement reached on fish in July 2010 � � Small progress made on NAMA Small progress made on NAMA – – stoppers, stoppers, � wood and paper products reclassified wood and paper products reclassified � Discussion ongoing on clothing, textiles and Discussion ongoing on clothing, textiles and � footwear (12 six digit lines requested by EU) by EU) footwear (12 six digit lines requested � Agriculture still most sensitive Agriculture still most sensitive – – no agreement no agreement � on process (e.g. simultaneous exchange of on process (e.g. simultaneous exchange of requests and offers, step by step or formula requests and offers, step by step or formula cuts) cuts)
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