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Wednesday, 20 October 2010

EU-South Africa Relations in agriculture

Trade relations with South Africa are governed by a bilateral agreement: the Trade, Development and Cooperation Agreement (TDCA), which is in application since 1 January 2000 (provisionally) and entered into force on 1 May 2004. In 2007-2009 South Africa exports of agriculture and processed agricultural products to the EU reached more than 1,9 billion Euros per year on average, in comparison to the EU exports to South Africa of 683 million Euros on average. Duties applied on most South African agricultural exports to the EU have been gradually phased out during a transitional period of 10 years. Therefore, all liberalisation that EU has committed to make under the TDCA has happened as of 1 January 2010. However, certain products are subject to partial liberalisation under tariff rate quotas (TRQs), and some sensitive products remain excluded from any concessions.On the South African side, the transition period for the completion of the tariff reduction schedule is twelve years. The products that are due to full liberalisation by 2012 include certain vegetables, cereals, prepared meat products, olive oil, and notably both sparkling wine and wine TRQs that SA has opened to the EU. However, sensitive products are also excluded from liberalisation by SA. The Agreements on trade in Wines and Spirits with South Africa apply “provisionally” as from 28 January 2002. The entering into force remains provisional as long as SA has not ratified both Agreements. Wine trade is very important for both EU and South Africa. SA’s wine imports into EU is in constant increase since 2001 and in 2009 it reached 2,9 million Hl, which is worth more than € 442 million.

Source: European Commission

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