Sacu-Efta free trade agreement implemented
Thématique :
EU,
sud afrique
The South African Department of Trade and Industry (DTI) on Tuesday confirmed the operation of the landmark Free Trade Agreement (FTA) between the Southern African Customs Union (Sacu) and the European Free Trade Association (Efta) from May 1, 2008.
Sacu comprises Botswana, Lesotho, Namibia, South Africa and Swaziland, while the Efta incorporates Iceland, Liechtenstein, Norway, and Switzerland.
The Free Trade Agreement was initially published in the Government Gazette in December 2007, and was expected to go into force on January 1, 2008, however, the actualisation of the agreement was only confirmed on May 1.
The delay was as a result of technical shortcomings in the instruments of ratification of some parties, which resulted in the Efta being unable to implement the FTA on the expected deadline.
The South African government and the African sub-region as a whole, hoped for growth in trade relations with its Western European counterparts, through the establishment of the agreement.
The recognition of the Sacu by the World Trade Organisation (WTO) was also an important change for South Africa, particularly relating to the current WTO negotiations on global trade, in continuation of the Doha round.
The long-awaited agreement managed and facilitated trade in industrial products, fish and other marine products, and processed agricultural products.
Trade in basic agricultural products was governed by bilateral agreements with each of the Efta states. Most industrial goods, including fish and other marine products now benefit from duty-free access to the Efta states.
The importation of products into Sacu would also benefit from the steady elimination of customs duties over a transitional period of time.
Sacu comprises Botswana, Lesotho, Namibia, South Africa and Swaziland, while the Efta incorporates Iceland, Liechtenstein, Norway, and Switzerland.
The Free Trade Agreement was initially published in the Government Gazette in December 2007, and was expected to go into force on January 1, 2008, however, the actualisation of the agreement was only confirmed on May 1.
The delay was as a result of technical shortcomings in the instruments of ratification of some parties, which resulted in the Efta being unable to implement the FTA on the expected deadline.
The South African government and the African sub-region as a whole, hoped for growth in trade relations with its Western European counterparts, through the establishment of the agreement.
The recognition of the Sacu by the World Trade Organisation (WTO) was also an important change for South Africa, particularly relating to the current WTO negotiations on global trade, in continuation of the Doha round.
The long-awaited agreement managed and facilitated trade in industrial products, fish and other marine products, and processed agricultural products.
Trade in basic agricultural products was governed by bilateral agreements with each of the Efta states. Most industrial goods, including fish and other marine products now benefit from duty-free access to the Efta states.
The importation of products into Sacu would also benefit from the steady elimination of customs duties over a transitional period of time.
