Skip to main content

EU deal allows easier access for SA products

| Supplier news

Greater market access for a range of South African products into the giant EU market is soon to become a reality with the implementation of the long-awaited economic partnership agreement between the EU and six southern African countries.

The agreement which has been approved by Cabinet will be signed at an event in Botswana early next month although implementation will have to await ratification by Parliament, which only reconvenes in August after its prolonged recess for the local government elections. The deadline for implementation of the agreement to commence is October 1.

The six signatories are SA, Namibia, Swaziland, Lesotho, Botswana and Mozambique. Angola participated in the initial discussions but decided that it was not ready to enter into the agreement.

The terms of the deal offer much wider market access for a range of South African products than exists under the current trade and development co-operation agreement that SA signed with the EU in 2000. This deal included 98% duty-free access for South African industrial goods into Europe but only 60% of agricultural production was favoured. The new economic partnership agreement gives greater weight to agricultural product access.

Concessions include an increase in bthe quota for duty-free wine exports from 47-million litres a year to 110million litres, and the introduction of duty-free quotas for sugar of 15,000 tonnes and ethanol of 80,000 tonnes a year. Negotiations on the economic partnership agreement were very tough, lasting about 10 years with several sticking points creating prolonged delays.

Department of Trade and Industry deputy director-general Xolela Mlumbi-Peter said on Thursday that a key element of the agreement was that it recognised the common external tariff of the South African Customs Union (Sacu). A single trade regime between Sacu and the EU would be established.

The EU has also accepted a "rules of origin" framework which will allow products partially produced outside of SA to benefit from the trade concessions. Mlumbi-Peter said it was important that the agreement would allow SA to impose export taxes on its raw material exports in a bid to increase local beneficiation. SA also negotiated a bilateral protocol on geographical indicators with the EU, due to growing interest in protecting wine names and specialised agricultural product names.

The agreement will protect 102 wine names including the use of "champagne" by EU countries and other European-specific indicators such as "feta". Three South African agricultural product names gaining recognition are Rooibos, Honeybush and Karoo Lamb.

Pin It

Related Articles

By: Daily Investor  Ramokgopa referred to South African municipalities owing Eskom R78 billion, which is increasing at an alarming rate.
By: Se-Anne Rail - IOL Knorr is recalling its brown onion gravy sachets after manufacturers have discovered some packets may contain traces of cow’s milk and soy.
By: Bianke Neethling – Daily Investor Eskom has done a tremendous job of limiting unplanned outages and improving the performance of its coal fleet, which bodes well for load-shedding in South Africa going forward.
By: Shaun Jacobs – Daily Investor In June, the Constitutional Court ruled in favour of Coronation in its legal battle against SARS regarding the profits earned by its Irish-based subsidiary, Coronation Global Fund Managers (CGFM). 
By: Myles Illidge – My Broadband Eskom is cracking down on corruption surrounding its operations and service providers, and using new technologies and systems to minimise opportunities for criminal activity.